Bourbon County adopts Section 125 cafeteria plan, allows retiree participation and names administrator

The Bourbon County Commission voted Tuesday to adopt a Section 125 cafeteria plan (Resolution 0126) that includes retiree participation and designates an administrator to ensure benefits can be processed pretax for the upcoming payroll. County staff told the board the plan must be adopted before the county’s first payroll to preserve pretax status.

"In order for your benefits to be pretax, you have to adopt this plan tonight," the county clerk said while explaining the document and enrollment already completed through open enrollment. The board voted to allow retirees to remain on limited benefits (typically dental or vision) by paying premiums directly to the clerk’s office, and named Laura Crom as the administrator responsible for processing payments and coordinating accounts payable.

Commissioners discussed the administrative procedures—receiving monthly checks from retirees, issuing receipts and ensuring accounts payable pays the vendor each period. Clerk staff said the arrangement has been used in prior years for a small number of retirees and can be tracked through routine AP checks. The board approved the resolution by voice vote.

What happens next: Laura Crom will be registered as the cafeteria plan administrator and staff will finalize the signed documents; retirees enrolled during open enrollment will be billed monthly and the county will process payments to the carrier.