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Important update regarding the custodian of your employees’ HSAs

We’re announcing an update regarding the custodian of your employees’ HSAs.

On March 13, 2021, WealthCare Saver – a private-label HSA solution that is fully-integrated with our platform and is an IRS-authorized non-bank trustee – will become the non-bank trustee of health savings accounts. This is a legal change to the HSA custodian – with minimal employee-facing impact, other than communications.

Before we get any deeper, it’s important we define and clarify the difference in what a custodian is – versus, what a depository is responsible for.

A custodian: Is responsible for protecting the employee, managing the account, communications, account opening process, funds movement, regulations & compliance, and more.

A depository: The depository is the underlying bank holding the non-invested funds.

Today, PNC serves as both the HSA custodian and depository. Following the transition, WealthCare Saver becomes the non-bank trustee and PNC remains the depository. To support the WealthCare Saver transition, PNC has agreed to resign as the custodian and assign WealthCare Saver the successor custodian. Nothing about the day-to-day operation, employee account usage, or teams supporting the HSAs change.

Straight-forward transition to WealthCare Saver

It’s critical all of value-add components of an HSA complement and build upon each other – both in value to employees and sequentially as we work with our partners to build them. To sequence and deliver quickly, we’ll be transitioning to a non-bank trustee model.

The transition does not require employee action. There will be no impact on day-to-day account usage:

Employee impact:

  • No impact to debit cards, mobile apps, online portals, credentials, or account history – before, during, nor following the transition.
  • No bank transfers, investment liquidations, spending freezes, or opt-in actions

Employer impact:

  • No changes to how you manage your HSA program.
  • No enrollment, funding/contribution, or reporting changes.
  • You are encouraged to deliver an employee notification email on February 4, 2021

Summary: The transition simply entails a legal change in the custodial entity and the employee notifications required by existing custodial agreements

About WealthCare Saver

WealthCare Saver is a dba of Alegeus Technologies, LLC, an Internal Revenue Service (IRS) authorized, non-bank passive trustee operating as the custodian of health savings accounts. Alegeus Technologies is a leader in the consumer-directed account industry, supporting more than 30 million consumer and 225,000 employer health benefit accounts.

WealthCare Saver FAQ

What is an HSA Custodian?

An HSA custodian enables participants to contribute money to a Health Savings Account and withdraw funds to pay for qualified medical expenses. Custodians typically perform functions such as producing required tax reporting, providing required account disclosures or communications, and establishing customer identification processes.

When will the HSA custodian be transitioning from PNC Bank to WealthCare Saver?

The transition date is March 13, 2021.

Why is this change happening?

This change was initiated by WealthCare Saver – a fully-integrated, private-label HSA custodial solution from Alegeus Technologies, LLC. – and will be executed in collaboration with OCA, the Administrator of your HSA. At WealthCare Saver’s request, PNC has agreed to resign as the custodian of your HSA and assign WealthCare Saver the successor custodian.

Will accountholders be notified of this change?

Yes, approximately 30 days prior to March 13, 2021, Alegeus will send a notification by mail to accountholders who have an account custodied by PNC Bank as of approximately January 15, 2021 notifying them of the change in custodian. The notice will include information about the new terms and conditions governing their account including the new accountholder agreement.

Is there any action required of accountholders?

No. However, Accountholders are encouraged to review the new terms and conditions governing their account including the new accountholder agreement at www.wealthcaresaver.com/disclosures/wcsp. Accountholders have the option to close and/or transfer any existing balance to another HSA custodian.

Will accountholders be required to undergo a new Customer Identification Process (CIP) as part of the transition?

No, accountholders are not required to undergo a new CIP process if they are an existing HSA accountholder on the OCA platform.

Will accountholders require new myOCA Portal or myOCA Mobile applications, URLs, or credentials?

No, the online and digital experiences will not change. Accountholders may continue to use their online accounts and user credentials. Their account history will remain intact leading up to and following the transition.

Will accountholders receive new debit cards?

No, accountholders’ debit cards will not change. They may continue using their cards leading up to and following the transition.

Will accountholder account numbers change?

No, there will be no changes to accountholder account numbers.

Will there be a spending freeze (or funds inaccessibility window) associated with the WealthCare Saver transition?

No, there will be no funds inaccessibility window to facilitate the custodial transition. There are also no spending freezes associated with this transition.

Will the investment threshold change on 3/13/21?

No, the investment threshold will not change on 3/13/21.

Are WealthCare Saver HSA funds FDIC-insured?

Yes, the balance in the deposit account will continue to be insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount permitted under FDIC guidelines. Investment products and services are not deposits, are not FDIC-insured, are not insured by any Federal government agency, are not guaranteed, and may go down in value.

Will there be any impact to the employees?

Employee experience:

No changes or impact to debit cards, online/mobile apps, bill payment, etc. No funds movement or transfer to facilitate the transition. No spending freezes or funds inaccessibility windows during the transition.

As previously stated, this is a legal change to the HSA custodian. Thus, as required by the existing custodial agreement, the only employee impact is notification delivered via two communications: