Section 125 Benefit Plan/Cafeteria Plan

American Fidelity Assurance Company  currently administers the Section 125 Plan (commonly called the "Cafeteria Plan") for full-time employees.

There are two parts to the Plan:

  • Conversion of premiums to pre-tax dollars. (Any medical/vision/dental/cancer premium you have withheld from your paycheck can lower your federal, state, and FICA tax liability.)

    Employees sign a new Election form each fall for the following calendar year, stating whether they want the premiums withheld "before-tax" or "after-tax." If the premiums are "before-tax," the coverage cannot be dropped during the calendar year for any reason other than a qualifying change in family status, such as divorce, death, spouse gains coverage through his/her employment, child no longer eligible for coverage, etc.

  • Flexible Spending Account withholdings.

    The Expense Reimbursement Accounts allow you to direct a part of your pay, on a pre-tax basis, into special accounts that can be used throughout the year to reimburse yourself for certain out-of-pocket medical expenses and/or dependent day care expenses. There are two separate accounts:

    An Unreimbursed Medical Account ("URM" or "Medical Reimbursement") and a Dependent Day Care Account ("DDC"). Because your money goes into your reimbursement accounts before federal and state income or Social Security taxes are withheld, you pay less in taxes, and ultimately have more disposable income. These accounts are governed by specific federal regulations. For example, after Option Period closes, you cannot change your election during the calendar year, unless you have a change in status that affects your need for the benefit. Federal regulations also require that any money you deposit in a reimbursement account that is not used to cover eligible expenses incurred during that same plan year will be forfeited (called the "Use It or Lose It Rule"). For more information on the Section 125 Flexible Spending Accounts, go to American Fidelity's website, or call their main number: 1-800-654-8489. Their website contains the Section 125 Reimbursement forms participating employees need when filing a claim on their account(s).


    Questions should be directed to:

    Employment Services
    ATTN: Ms. Dawn Thurber, Benefits Coordinator
    1100 E. 14th St.
    Ada, OK 74820
    580-559-5823 OR dthurber@ecok.edu