Woods County commissioners allow Colonial Life to meet with employees about voluntary benefits; no final cafeteria‑plan decision

Woods County commissioners voted to allow Colonial Life representatives to speak directly with county employees about voluntary benefits and enrollment options, but did not make a final decision on which vendor will serve as the county's primary cafeteria‑plan (Section 125) administrator.

The request came from Thole Nichols of Colonial Life, who identified himself as the company’s district manager for much of Oklahoma, and Crystal Jones, whom Nichols described as his area manager. Nichols told the commissioners Colonial Life offers voluntary products such as accident, cancer, short‑term disability and hospital indemnity, a benefits‑education program and an online enrollment portal that can also handle enrollment for dental, vision and major medical. “We educate employees,” Nichols said. He added his office provides a staffed benefits‑administration team to assist the county’s payroll/benefits coordinator with billing and reconciliation.

Nichols highlighted two product features that he said differentiate Colonial Life from some competitors: guaranteed‑issue coverage without a pre‑existing‑condition exclusion for new hires (coverage effective if the qualifying event occurs after the policy effective date) and an FSA/administration service the company would operate if selected. “We would be funding the cost per employee for that as a benefit to you,” Nichols said.

Commissioners and staff questioned operational details. Several speakers noted federal IRS rules for cafeteria plans (Internal Revenue Code Section 125) require documentation and a single primary administrator for an employer’s flexible spending account (FSA). Nichols acknowledged that an employer can permit multiple vendors to offer voluntary products to employees but said only one vendor can operate the employer’s FSA. “Some counties have three vendors for voluntary benefits, but only one can be your carrier for your flex plan,” Nichols said.

A commissioner asked whether the county would pay any portion of the voluntary benefits; a county staff member responded the voluntary products are employee‑paid and the cafeteria plan’s pretax arrangements are governed by IRS rules and by the selected administrator’s documentation. Commissioners raised enrollment logistics and the risk of competing sales efforts during open enrollment, and Nichols said Colonial Life provides benefit counselors (not commission‑only agents) and can coordinate scheduling and enrollment to reduce confusion.

After discussion, a commissioner moved to allow Colonial Life to meet with and present to county employees; that motion was seconded and approved by voice vote. The commissioners did not vote to change the county’s primary cafeteria‑plan administrator or to appoint Colonial Life as the FSA administrator at this meeting. Several speakers said a separate, later decision would be required to make Colonial Life the county’s primary FSA carrier because that change affects the county’s administration and card‑services arrangements.

Nichols and Jones said they would remain available to answer employee questions and to meet again if commissioners decide to designate Colonial Life as the primary cafeteria plan administrator. The county also heard that current vendors (American Fidelity and Aflac were mentioned) could still be available to employees for voluntary products if the county designates a different company as the FSA administrator.

The meeting record shows commissioners accepted the limited request — permission to allow Colonial Life to speak with employees — while reserving the authority to choose the county’s cafeteria‑plan/FSA administrator at a later date.