Administration presents American Fidelity proposal to manage pretax FSA/HSA enrollment; trustees ask for formal agreement

Administration presented a proposal from American Fidelity to manage employee open enrollment and administration for Section 125 benefits (flexible spending accounts and health savings accounts) and related employee support tools.

Staff said American Fidelity would provide software and enrollment support, a mobile app and ongoing administration services at no cost to the district; the company would help employees enroll in or manage FSA and HSA accounts and provide user education. The administration indicated the district currently offers a health savings account (HSA) and that an FSA option would be made available through the proposed arrangement.

Trustees asked for clarity on implementation mechanics: how payroll deductions would be handled, whether the district or employees would remit funds, and how the vendor would access employee information. Trustee questions prompted counsel and staff to confirm that a formal services agreement is necessary; trustees asked that any agreement be returned to the board with explicit data-protection, billing and remittance procedures spelled out. The administration said the presentation was a proposal step and that staff would develop a written agreement for board review.

Ending: The board did not approve a contract at the work session. Administration agreed to draft and return a formal services agreement that defines payroll remittance, data protections and operational responsibilities before moving forward.