Waunakee board approves moving select employee benefit accounts to Associated Bank
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Summary
The Waunakee Village Board approved moving administration of health savings, flexible spending and COBRA accounts to Associated Bank, with changes to take effect for the 2026 benefit year and employees able to keep or transfer existing HSA balances.
The Waunakee Village Board voted to move administration of several employee benefit accounts to Associated Bank, with the change scheduled to take effect for the 2026 benefit year.
Board members approved a motion to transfer administration of health savings accounts (HSA), flexible spending accounts (FSA) and COBRA administration from the village’s existing vendors to Associated Bank. The board was told North Shore Bank will continue to manage the village’s health reimbursement arrangement (HRA) for certain retired employees and will continue to offer the optional 457 deferred compensation plan; TASK will continue to administer FMLA.
Jared, a village staff member who presented the proposal, told trustees Associated Bank’s system “offered a lot more, I think, user friendly and, employee friendly control over their health savings account,” and that the bank was offering comparatively strong interest rates for HSA balances. He also noted a practical convenience for some employees: “we literally have a branch across the parking lot here.” Jared said the change would require data migration and therefore must begin well before the 2026 benefit year.
Jared also clarified how current balances would be handled. “All the money that's currently in those, like, HSA accounts with North Shore Bank will stay there, and those accounts won't close automatically,” he said. Employees will have the option to transfer their balances to Associated Bank but are not required to do so.
Trustees asked procedural questions about timing; the board moved and seconded approval, and the chair called the voice vote. The motion carried.
The decision reassigns account administration but does not close employees’ existing HSA accounts at North Shore Bank unless employees opt to move funds. The board did not authorize changes to the HRA for retired employees or the village’s optional 457 plan, which the presenter said North Shore Bank will continue to administer.
