Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 26th, 2015
Benefits & Administration
Investment Options in HSAs Improve Savings Potential
At the end of 2014, account balances in health savings accounts (HSAs) with investment options averaged $10,261, or about six times the average $1,709 balance in HSAs without investment options, according to the Employee Benefit Research Institute (EBRI). “HSAs often have an investment account option that allows account owners to invest in not just a money market account, but in mutual funds and other investment vehicles much like they would in a 401(k) plan,” explains Paul Fronstein, director of EBRI’s Health Research and Education Program and author of the report. “Some HSA owners may use the investment account option as a means to increase savings for retirement, while others may be using it for shorter-term investing.”Read more >
Newell Rubbermaid Inc. intends to offer approximately 3,300 former employees who have deferred vested benefits under the company’s defined benefit (DB) pension plan a one-time election to receive a lump-sum distribution of the present value of their benefits by the end of 2015. The effect of this offering on the company’s benefit obligations is revealed in an 8-K filing with the Securities and Exchange Commission (SEC).Read more >