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Knox County Schools approves USI contract for 403(b) administration after public questions about restarting payroll contributions

May 10, 2025 | Knox County, School Districts, Tennessee


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Knox County Schools approves USI contract for 403(b) administration after public questions about restarting payroll contributions
The Knox County Schools Board of Education on a recorded vote approved a contract with USI Consulting Group to provide 403(b) third-party administrative services for the term of July 1, 2025, through June 30, 2030, with an option to extend for five additional years.

The contract approval followed a public forum comment from Brandy Jarrell, who said some district employees who temporarily stopped payroll contributions to their 403(b) accounts want to restart deductions and asked whether the contract would allow that. Jarrell said some accounts remained active at a zero-contribution level and that employees returning from leave or rehired this year need a way to resume contributions.

Board members and staff said the question depends on contract language and payroll procedures. A staff member asked Jarrell to email details to staff so procurement and legal could review the contract and respond. Board members noted that the contract would be with USI, not with the previous administrator referenced in discussion.

Miss Christie, board member, moved to approve the contract; Mr. Triplett seconded. The roll call recorded six yes votes, one no vote and two pass votes before the motion carried. The board did not amend the contract at the meeting and directed staff to follow up with the public speaker with clarification after procurement reviews the contract.

Discussion points included whether an employee who voluntarily stopped payroll deductions could be restarted under the new contract and whether accounts that remained at zero would be treated differently when contributions resume. Staff said they were not prepared to give a definitive answer at the meeting and would consult procurement and counsel and respond via email.

The contract item was presented and debated as part of the consent/contract section of the agenda; the board took formal action to approve it, and staff are expected to return an answer to the public speaker about restarting payroll contributions once they review the executed contract and payroll procedures.

Less central details: board members who voted yes included Doctor Beller, Miss Pike, Miss Morgan, Mr. Triplett, Mr. Wright and Miss Christie; Miss Fontenot Ridley voted no; two members recorded pass votes. The board chair called the roll and announced the final tally.

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Scribe from Workplace AI
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