Today, the Group Insurance Board approved the selection of Total Administrative Services Corporation (TASC) to administer the pre-tax savings accounts for eligible state employees and retirees.

A letter of intent to award contracts will be issued to TASC for the administration of the State’s pre-tax savings programs, including:

  • Health Savings Accounts
  • Employee Reimbursement Accounts, such as Health Care and Limited Purpose Flexible Spending Accounts and Dependent Day Care Accounts
  • Commuter Fringe Benefit Accounts, such as Parking and Transit Accounts
  • Section 125 Cafeteria Plan non-discrimination testing and plan documentation

Contracts are effective January 1, 2026, through December 31, 2028, with the potential for two, two-year extensions.

The Department of Employee Trust Funds (ETF) conducted a requests-for-proposal process, which identified a vendor’s ability to deliver a robust technology platform for claims substantiation, improve debit card functionality for pre-tax saving accounts, offer the submission of recurring claims for dependent care expenses, and provide enhanced year-end reporting.

Other Business

In addition, the Board reviewed and accepted actuarial audit reports on the:

  • Funding, reserves, investment strategies, and rates of the State and Local Group Life Insurance Program, as of December 31, 2023
  • Actuarial valuation of the State and Local Income Continuation Insurance Plan and related experience studies, as of December 31, 2023
  • Process and assumptions used to set 2024 health insurance rates and project reserve balances

This was the first time that actuarial audits had been conducted on the Group Life and Group Health programs. ETF initiated the audits as a best practice to support the Board’s fiduciary responsibilities and sustainability of these programs.

ETF presented the results of an internal biennial audit of Optum Financial for administering pre-tax savings accounts in 2022 and 2023. ETF will continue to update the Board on improvements implemented to address findings.

The Board’s next meeting is March 12, 2025.