PayFlex introduces new investment platform for health savings accounts; some employees need to take action by May 20

Last week, an email was distributed from Payflex, Purdue's administrator for health savings accounts , to many Purdue employees. The email was intended to be sent only to approximately 100 employees who have HSA accounts and who make active investment choices with their funds. Unfortunately, it was delivered far more broadly than expected. Employees who have HSAs but do not make specific investment choices do not need to do anything at this time.

HSA funds are normally deposited into an interest-bearing account through Payflex. Once an employee's account balance reaches $1,000, he or she has additional investment options available. The option to invest is available at any time to all employees who have an HSA account that holds the minimum $1,000 balance.

Faculty and staff who currently have health savings accounts and have made investment choices with those funds will see new investment options via PayFlex. Effective June 1, new investment options will be available through the Bank of New York Mellon (BNY) and the current investments will no longer be supported. As a result, actions are required for all current HSA investors by May 20. The move to BNY is being made to offer improvements such as quicker settlements, recurring investment transfers and automatic rebalancing. 

Action required

Employees who have an HSA and are actively investing through PayFlex will need to close their investment account by May 20. Once closed, the funds will move back into their HSA to allow for the move to BNY.

To close an investment account set up through PayFlex:

1. Log in to purdue.healthhub.com  (HealthHub, powered by PayFlex)

2. On the left side of the screen, click on "My Accounts & Services," then click on "Investments"

3. Click on "Close Investment Account"

4. Click "Submit"

5. Click "Yes" on the confirmation page

If an employee does not close his or her investment account by May 20, PayFlex will close the account on the employee's behalf. A "quiet period" for HSA investments will begin May 21 and end on May 31. During this time, HSA funds cannot be actively invested, but will be held in the interest-bearing account until the new platform becomes available.

On June 1, employees can open a new HSA investment account with BNY through their member account at HealthHub. New investment choices will be available via BNY. Employees may wish to consult with a tax advisor in regard to their HSA investment options.

For more information on the new platform and investment choices, contact PayFlex at 800-284-4885.