Streamlining Section 125: A Success Story
Josh Smith, Director of Finance at the Woodhaven-Brownstown School District in Michigan, faced significant challenges related to Section 125 planning and administration. With over 500 staff members including 375 teachers, he needed to provide options without burdening staff. Seeking solutions, Josh turned to American Fidelity, a trusted partner specializing in benefits administration and compliance.
Challenge
The district – an area comprised of five elementary schools, two middle schools, and one high school – struggled with Section 125 compliance and a labor-intensive process of administration. Josh recognized the need for a streamlined solution that would ensure compliance while reducing administrative burdens.
“School districts are highly regulated. If we are found non-compliant with something like Section 125 planning, the penalties can be astronomical from the IRS.”
Solution
Upon the recommendation of a mentor, Josh reached out to American Fidelity, a leading provider of benefits administration services. American Fidelity onboarded the school district, offering expertise and support in navigating the complexities of Section 125 planning.
With American Fidelity's assistance, the district successfully enrolled its staff, achieving a participation rate between 60 to 70% during the first year. The partnership continued to evolve, with American Fidelity providing educational resources, informing them about optional insurances and strategies to protect their families.
“American Fidelity does a great job of educating your people.”
Results
The Woodhaven-Brownstown School District witnessed significant improvements in benefits administration and compliance. The enrollment process, which previously required substantial manpower, became streamlined and efficient. The district achieved a high participation rate, with only 30 staff members opting out of enrollment in the subsequent year.
The relationship with American Fidelity fostered trust and reliability, providing the district with peace of mind. The simplicity of communication, such as rectifying issues through a simple email, enhanced the overall experience for the district's administration.
“If you are concerned about compliance at all, or simplifying a process for your staff, American Fidelity has been one of the better decisions I’ve made since I’ve been at the school district.”
American Fidelity's commitment to education and simplifying processes greatly benefited the district by ensuring compliance and providing peace of mind. Successful collaboration serves as a testament to the importance of forming strong relationships with partners in the business world, ultimately leading to enhanced efficiency and improved outcomes.
This blog is up to date as of July 2024 and has not been updated for changes in the law, administration or current events.
