Federal employees who enroll in the upcoming flexible spending accounts could pay an account management fee to whatever contractor is chosen to run the program, effectively reducing the benefit to employees of opening those tax-favored accounts. In its request for bids to run the program, the Office of Personnel Management said, “The selected vendor will be paid through forfeitures, interest earnings on contributions and, if necessary, through deductions from participants’ accounts.” The reference to forfeitures refers to the provision in the law governing FSAs that states that any money enrollees put in such accounts but don’t spend by the end of the calendar year goes back to the sponsor of the plan. In the private sector, that would be the employer, but in the government program it will be the contractor chosen to run the program. OPM likely will announce a winning contractor early in 2003.