401(k) Specialist Issue 3 - 2023 - 42

401(k) PRODUCT WATCH
Ascensus, Capital Group Team Up for Pooled
Employer Plan Launching Q1 2024
The Ascensus|American Funds PEP offers the traditional administrative
and investment fiduciary benefits of a pooled employer plan-with
Wilshire taking on the role as 3(38) investment fiduciary-plus several key
differentiators, including:
American Funds Target Date Plus, powered by Morningstar Investment
Management LLC, with personalized allocation advice tailored to a retirement
saver's specific needs and objectives.
A tiered investment menu grouping investment funds into logical
ASCENSUS announced that it will partner with Capital Group to offer a
new Pooled Employer Plan (PEP) with some unique benefits.
Dresher, Pa.-based Ascensus said it will begin offering the Ascensus
| American Funds Pooled Employer Plan solution on its independent,
open-architecture recordkeeping platform beginning in spring 2024.
The new investment solution is focused on creating a unique portfolio
that matches a participant's financial needs more closely than a traditional
target date fund allocation determined only by age.
categories (from target-date funds to customized portfolios) to build
understanding and simplify participants' decision making-inclusive of a
number of leading fund managers.
A fully bundled solution supported by Ascensus' world class-rated
client service team.
Greater capabilities targeting better outcomes for participants through
tools like My Forecast, where savers will be able to see a complete retirement
readiness view.
Plan design flexibility that works for each adopting employer; and
Financial Finesse financial wellness coaching benefits.
Ascensus has reached $1 billion in PEP assets under administration,
representing more than 33,000 savers. The company has more than $742
billion in assets under administration overall.
HSA Assets on the Rise for Midyear 2023
HSA ASSETS increased to $116 billion in almost 36 million accounts by
the midyear point of 2023, a year-over-year increase of 17% for assets
and 6% for accounts, according to a report by HSA data consultant
Devenir.
Devenir's survey spotlights rapid growth among HSAs, noting that in
the first half of 2023, HSA investment assets grew 20%, totaling $40 billion
by the end of June for an increase of 30% since 2022.
The average total balance for HSA investment accounts came in at
$18,362, and 7.3 times larger than an average funded non-investment
holder's account balance.
HSAs that opened in the first half of 2023 had an average balance of
$1,143 at the midyear point, compared to a $1,464 average balance in
the middle of 2022. Devenir cites higher levels of mergers and acquisition
(M&A) activity for the larger average balances in the year prior.
Devenir's research finds that account holders contributed 11% more
to their accounts in the first six months of 2023 to total $29 billion, while
withdrawing $21 billion.
Looking forward, HSA providers project an HSA industry asset growth
of 15% in 2023 (up from 13% at the end of 2022), while anticipating their
42
ISSUE 3 2023 | 401kSpecialist.com
own business will grow by 23% during the same period (up from 17%) at
the end of 2022, states Devenir. The company currently projects that the
HSA market will exceed 40 million accounts by the end of 2025, holding
over $150 billion in assets.
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401(k) Specialist Issue 3 - 2023

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