Press Release

(How) Has COVID Impacted Health Savings Accounts?

Issued by PSCA [Plan Sponsor Council of America]

Mar. 16, 2021

In the wake of the pandemic, industry-leading benchmarking survey will offer new insights on HSA plan design and practices.

Arlington, VA (March 16, 2021) – The COVID-19 pandemic has magnified attention on American workers’ health and retirement – and a new survey fielded by the Plan Sponsor Council of America, part of the American Retirement Association, will provide fresh insights on health savings account practices and experience.   

In last year’s survey, more than half of employers (51.5%) stated they position the Health Savings Account (HSA) as a retirement savings vehicle, reinforcing the notion that HSAs can be a powerful retirement savings tool.  However, employee education continues to loom large as the primary concern regarding HSAs by employers – and that was prior to the onset of widespread “work from home” decisions.  This year’s survey will further explore employer concerns and barriers they face regarding employee education, implementation, and communication – particularly as employers prepare for the 2022 enrollment season.

Sponsored by Empower Retirement, the survey is designed to gather HSA design trends and administration practices of plan sponsors, as well as measure their perceptions of HSAs as a retirement savings vehicle. The survey is the only one of its kind – providing independent benchmarking data not found anywhere else. 

“The COVID-19 pandemic has put a new emphasis on the importance of a holistic approach to healthcare and retirement,” comments Nevin E. Adams, chief content officer, and head of research at the American Retirement Association.  “Health Savings Accounts, with their triple-tax advantages, provide a unique solution – and can be a valuable component of an employer’s total rewards strategy – now more than ever.”

The survey can be accessed at https://www.psca.org/research/HSA - the deadline for participation is April 9th.   

Preliminary results from the third annual HSA Survey will be shared at the Plan Sponsor Council of America’s (Virtual) National Conference on April 20th.  Details about that event are available at https://www.psca.org/2021nc. 

About the Plan Sponsor Council of America

The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change, and expand on the success of the employer sponsored retirement system. With members representing employers of all sizes, we offer a forum for comprehensive dialogue. By sharing our collective knowledge and experience as plan sponsors, PSCA also serves as a resource to policymakers, the media, and other stakeholders as part of our commitment to improving retirement security for millions of Americans. For more information, visit www.psca.org.

About Empower Retirement

Headquartered in metro Denver, Empower Retirement administers approximately $1 trillion in assets for more than 12 million retirement plan participants as of Jan. 31, 2021.1 It is the nation’s second-largest retirement plan recordkeeper by total participants.2 Empower serves all segments of the employer-sponsored retirement plan market: government 457 plans; small, mid-size and large corporate 401(k) clients; not-for-profit 403 (b) entities; private-label recordkeeping clients; and IRA customers. Personal Capital, a subsidiary of Empower Retirement, is an industry-leading hybrid wealth manager. For more information please visit empower-retirement.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.

 Estimated joint assets under administration of Empower Retirement and MassMutual.

 As of December 31, 2020. Information refers to the business of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York and GWFS Equities, Inc. GWLA’s consolidated total assets under administration (AUA) were $971.6B. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a company. GWLA’s statutory assets total $75.1B and liabilities total $72.9B. GWLANY statutory assets total $3.6B and liabilities total $3.4B. 

2. Pension & Investments 2020 Defined Contribution Survey Ranking as of April 2020.

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