HPS NBS Welcome Packet

WELCOME TO NBS! How to transition your Flexible Spending Accounts to NBS

Table of Contents 2. Welcome to NBS 3. Flexible Spending Accounts Contacts FSA Q&As 4. NBS Debit Cards

Welcome to NBS! Use this guide to transition your Higginbotham Public Sector Flexible Spending Accounts (FSAs) to National Benefit Services (NBS).

Key contacts and helpful Q&As are provided in main sections.

Additional or Replacement Cards Dependent Care Cards 5. FSA Fees 5. Admin Portals 5. Employee Communication 5. Paying FSA Funds 6. COBRA COBRA Q&As Contacts 7. Glossary

2 NBS Welcome Packet

Administrator Training NBS will be hosting 2-3 webinars in August and September to cover processes such as payments and reporting. Look for meeting invites via email.

Flexible Spending Accounts

An NBS Implementation Manager will be your one point of contact through the onboarding process.

You will receive contact information as your Agreements are completed and the plan enters implementation.

Implementation Contact Email: ImplementationTeam @nbsbenefits.com

FSA Q&As What happens to accounts with carryover balances?

If your FSA plan includes a carryover feature, those amounts will be provided to NBS after the run-out period ends and carryover funds will be loaded to the new NBS debit cards.

Higginbotham will provide a balance report on carryover funds approximately 10 days after the run-out period ends. Employees will not have access to their carryover funds until NBS loads the funds into their system.

What happens to accounts with a grace period?

Administrator Contacts Amanda Gracey Call: 800-274-0503, ext. 639 Email: amanda.gracey@nbsbenefits.com Fax: 844-438-1496 Mindy Christensen Call: 800-274-0503, ext. 628 Email: mindyc@nbsbenefits.com Fax: 844-438-1496

Employee Contacts Email: service@nbsbenefits.com Call: 855-399-3035 Fax: 844-438-1496 Mail: National Benefit Services, LLC P.O. Box 219393 Kansas City, MO 64121-9393

Higginbotham will manage the grace period if your FSA plan includes a grace period. Debit cards will be turned off as of August 31, 2026, and will not be usable for grace period funds.

Employees must submit paper reimbursement claims for any expenses made during the grace period.

What happens when the run-out period ends?

Higginbotham will manage the run-out period and grace period (if applicable), and then accounts will begin a 180-day appeals process.

The forfeiture process begins after the appeals process is complete. You will likely not receive your forfeiture balances for about nine months after their termination date with Higginbotham, due to IRS regulations.

What happens to Higginbotham debit cards at the end of the plan year?

As of August 31, 2026 debit cards will be turned off, and will not be usable for Grace Period funds.

Visit: https://www.nbsbenefits.com

When will Summary Plan Documents be ready?

Participant Portal: mynbsbenefits.com

These will be provided shortly – generally up to two weeks – after all NBS contracts are signed and completed.

Transitioning Your Flexible Spending Accounts

3

NBS Debit Cards

The NBS debit card will initially be valid for approximately three years. The debit card for Health Care FSAs will look like the example to the left and will come in an envelope with a Kansas City, MO return.

FSA debit cards should arrive no later than September 15, 2026. If individuals do not have their card by September 15, they can call the NBS number for assistance. If participants are enrolled in the Health Care FSA plan but have not yet received their card, they can file for reimbursement for out-of-pocket medical, dental, and vision expenses incurred after September 1.

Additional or Replacement Cards

Employees can request additional or replacement cards through the NBS web portal.

Lost or stolen cards can be reported via the participant portal, by calling NBS, or by emailing service@nbsbenefits.com.

Each enrollee will receive one debit card. If an employee wishes to order additional cards for eligible family members to use, they may do so at no extra charge. This can be done via the NBS participant portal or by calling or emailing the NBS service center.

NBS highly recommends that employees download their debit card to their mobile wallet. This allows employees to add their physical FSA debit cards to their mobile devices, providing another convenient way to access their cards and decreasing the likelihood of cards being misplaced.

4 NBS Welcome Packet

Dependent Care FSA Cards

Cards for Dependent Care FSA participants may be issued upon request. Debit cards for Dependent Care FSAs are not automatically issued because, generally, participants have a better experience when submitting paper claims or setting up continual reimbursement claims with NBS for this type of FSA. If an individual has both a Health Care and a Dependent Care FSA, the same card will work for both benefits. The Dependent Care provider must have an approved MCC (Merchant Category Code) for the Dependent Care FSA debit card to function properly.

Important! Please notify your Account Manager if you do not want your employees to use the debit card for Dependent Care FSAs.

FSA Fees

y

Transition-related fees, if applicable, will be covered by HPS.

y

FSA amendment fees are currently waived by NBS.

y

Additional fees may apply if significant extra work is required due to client or HPS errors.

y

Monthly administrative fees will continue to be paid by HPS.

Employees who have a carryover balance available but are no longer actively contributing to an FSA will be charged the NAP (Non-Active Participant) fee, which is the annual FSA administrative fee (deducted from their FSA balance). See Glossary for details about NAP fees.

Generally, employees will not have a fee for replacement debit cards. However, if the employer requests a rush replacement for a debit card, a $75 fee will be billed to the employer.

Admin Portals HR and Benefits staff can be granted access to the NBS employer admin portal: http:// employer.nbsbenefits.com.

The portal allows you to check employee benefit balances, run balance and account detail reports, view card mailing details, and more. Join the training webinars hosted by NBS in August and September for more information. Look for meeting invites via email.

Employee Communication Your Employee Benefits Guide and enrollment flyer will include information regarding the transition from Higginbotham to NBS. Use the Company Communications feature in THEbenefitsHUB to send out mass emails to all individuals currently enrolled in an FSA to inform them of the change.

Reach out to your Account Coordinator if you need assistance with this feature or would like any sample verbiage to send to employees.

Paying FSA Funds HPS recommends that you remit FSA funds directly to NBS. However, you may choose to send funds to either NBS or HPS. If you choose to send FSA funds to HPS rather than to NBS, delays may impact the employee experience – particularly for DCAP reimbursements. If you have a high participation in Dependent Care FSAs, HPS strongly encourages you to pay NBS directly.

Transitioning Your Flexible Spending Accounts

5

COBRA

COBRA Q&As How do employees enroll in COBRA coverage?

Employees will receive a COBRA packet in the mail two weeks after their termination.

The packet will advise how they can enroll in COBRA benefits. Employees can enroll in COBRA coverage online through the NBS portal or can complete enrollment by mailing the COBRA packet with a money order or check to NBS. The packet will also include how to register on the portal. Online election is available to employees until 11:59 p.m.

Central Time on the Last Day to Elect listed on their COBRA Continuation Election Form.

For the initial plan year, employees who are termed August 31, 2026, should receive their COBRA packets within the first two weeks of September.

How can employees pay their COBRA premiums?

Payments can be made by check, money order, automatic ACH, or one-time electronic payment by debit or credit card.

One-time electronic payments will be limited to a maximum of one month’s cost per transaction. A $25 convenience fee will be included with each one-time transaction.

Administrator Contacts Contact your HPS Account Services team for assistance with COBRA.

Can you set up administrative access to the COBRA portal?

It is not necessary to have access to the NBS portal, but you can set up access to the Client Self-Service portal. Please contact your HPS Account Coordinator to request portal access be initiated for you.

Can COBRA enrollment be escalated?

Yes, notify your HPS Account Coordinator if COBRA enrollment needs to be escalated. NBS can manually set up individuals so they can immediately enroll online in COBRA. Alternatively, the NBS team can email their enrollment packets the following day. Employees can access their account and enroll in their COBRA benefits at nbs.wealthcarecobra.com.

Please note that carriers may take up to a week to reinstate coverage after COBRA has been elected.

What is available on the Participant Self-Service Portal?

An eligible participant can: y View payment information (last received and next due) y View coverage information (plans and critical dates) y View copies of all communications NBS has sent to the member y Make online payments y Make their initial COBRA elections

Employee Contacts Email: cobra@nbsbenefits.com Call: 800-274-0503 Fax: 801-823-2279 Mail: P.O. Box 981044 Boston, MA 02298

6 NBS Welcome Packet

Glossary

Annual Run-Out Period

Grace Period

The period after the end of the plan year, during which employees can still submit claims for expenses incurred during that plan year. No new expenses can be incurred—this is only for submitting reimbursement requests.

An additional period (typically 75 days after the plan year ends) during which employees can continue to incur new eligible expenses and use any remaining FSA funds from the prior year. (Plans can offer either a carryover or a grace period—not both.)

Carryover/Rollover

Marketplace Drop Clause

A feature that allows employees to carry a limited amount of unused FSA funds into the next plan year, reducing the risk of losing unused money. The maximum carryover amount is $660 for 2026 and $680 for the 2027 plan year. The maximum carryover amount may increase in future years based on IRS cost-of-living adjustments (COLA), if allowed by the Cafeteria Plan. Please review your Cafeteria Plan documents to confirm if you offer the cost-of-living adjustment to increase the carryover maximum to stay in line with IRS maximums. (Plans can offer either a carryover or a grace period—not both.)

Generally, Cafeteria Plans do not allow employees to drop group medical coverage mid-year if they enroll in Marketplace individual medical coverage. However, if client or an employer offers the Marketplace Drop clause in their Cafeteria Plan, the employer may allow the individual and/or their dependents to drop group medical coverage once they enroll in Marketplace individual medical coverage.

COLA (Cost of Living Adjustment)

y Termination Run-Out Period: If NBS receives a termination date, the FSA might have the Termination Run-Out period to submit expenses incurred prior to the termination date. No fees will be associated with the FSA after NBS receives a termination date, even if the individual is in their Term Run-Out period. (The FSA will have normal fees until the termination date has passed.)

An annual increase set by the IRS that may raise the maximum amount you can contribute to your FSA each year. COLA also applies to the maximum carryover amount. Your Cafeteria Plan Summary Plan Description will state if you offer the COLA annual increase for the FSA and carryover adjustments.

DCAP (Dependent Care Assistance Program) A pre-tax benefit that allows employees to pay for eligible dependent care expenses—such as daycare, preschool, or elder care—so the employee (and the employee’s spouse, if applicable) can work or attend school. This is more commonly known as a Dependent Care FSA or Dependent Day Care FSA.

Evergreen An automatic re-enrollment feature that keeps employees’ FSA elections in place for the next plan year at the same amount unless they make a change during Open Enrollment. Generally, FSA elections do not roll in THEbenefitsHUB unless a client offers the Evergreen clause in their Cafeteria Plan.

NAP Fees & Other Account Fees NAP fees are an employee-paid fee deducted from their FSA account when an individual no longer contributes to it, but their account remains technically active.

y COBRA: If someone elects COBRA for their FSA, the normal FSA fee will be incurred through the end of the plan year by HPS or when the COBRA coverage ends, whichever is sooner. y End of Plan Year Run-Out and Grace Period: Normal end of plan year run-out and grace period will have the normal fee during that period unless the FSA account is exhausted. This fee is paid by HPS. y Carryover: A person with a carryover balance that is no longer actively contributing will continue to have a fee; this is the NAP fee. The carryover will continue year after year, indefinitely, until the account is exhausted. The carryover continues until either the account is exhausted or NBS is given notice that an employee has terminated employment.

Termination Run-Out Period The limited time after employment ends (or loss of eligibility) to submit claims for eligible expenses incurred before coverage ended.

Transitioning Your Flexible Spending Accounts

7