03/02/2016
HAZEN SCHOOL DISTRICT MEMO
Date: March 2, 2016
To: Employees with Health Savings Accounts (HSAs).
From: Sarah Snider
Subject: HSA Account Fees IMPORTANT
Dear Employee,
As you already know, BNY Mellon mailed letters to all participants with a HSA through WageWorks notifying everyone of a $2.00 per month fee to all individual accounts effective April 1, 2016. This fee is waived, however, for accounts with a total balance in excess of $5,000.
During meetings I attended at EBD and the AAEA before the change from DataPath to WageWorks, it was explained the only fee participants would be assessed by BNY Mellow to their HSA account was a $0.75 per month paper statement fee, which could be avoided by registering online and selecting e-statements. It was also explained that if a district chose to stay with DataPath, employees would be responsible for any and all fees associated with their HSA account.
Yesterday I received a memo from EBD regarding this new fee and that EBD was looking into the issue. It was the first time I received any communication regarding the fee. I immediately contacted EBD and WageWorks asking for an explanation. Below is the response I received from WageWorks. I have also posted the memo I received from the Department of Finance & Adminstration regarding this issue.
I cannot tell you how to handle your HSA or even give you advice. The only thing I would like to point out is this: if the fee stays, your account will be charged $2.00 per month, for a total of $24 a year. The fee to close an account is $25.
I will keep you updated on this issue as I get more information.
WageWorks Response:
Good afternoon Sarah,
When we were implementing the HSA benefit for the State of Arkansas, we did state that the only fee participants would be assessed by BNY Mellon to their HSA account was the .75 paper statement fee and fees associated with investments (if a participant chose to do so). Like our participants, we were notified late last week that BNY Mellon was changing their fee structure. BNY Mellon’s terms and conditions (an agreement directly with the participant) does allow them the right to change fees with a 30 day notice to participants. BNY Mellon will no longer charge for a paper statement, however they will charge a $2.00 per month fee to all individual accounts which will be effective 4/1/2016. Fees will be deducted the 2nd to last business day of the month with the first fee being assessed on 4/28/2016. This fee will be waived for accounts with a total balance in excess of $5,000.
We share your concerns in regards to the ex*****on of this change. This change impacted the entire BNY Mellon book of business. They were unable to do anything differently for WageWorks clients, we were a part of the mass roll out – including our own employees. WageWorks had no control over the timing of notices to their account holders and we truly apologize. We have expressed our concern of the timing to BNY Mellon.