Deals and People August 8, 2017

Vanguard to Outsource Some 403(b) Recordkeeping to Newport Group

Vanguard says the partnership will offer enhanced services and features to 403(b) plan participants and sponsors.
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Vanguard has decided to outsource recordkeeping for certain 403(b) plans to The Newport Group.

According to Vanguard, the partnership with Newport Group involves small-market 403(b) Employee Retirement Income Security Act (ERISA) plans as well as non-ERISA plans.

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“Vanguard has a history of working to provide 403(b) participants and plan sponsors with the tools and resources necessary to help them achieve success. By working with Newport Group on recordkeeping services, Vanguard is able to provide plan sponsors and participants with a variety of new and improved services/features,” the firm told PLANSPONSOR.

By working with Newport Group on recordkeeping services, Vanguard is able to provide plan sponsors and participants with Roth contributions, loans and an enhanced web experience. Participants will also gain access to Vanguard’s ultra-low-cost Admiral Shares. The Admiral Shares of Vanguard Total Stock Market Index Fund feature an expense ratio of 0.04% compared to the 0.15% of Investor Shares.

Vanguard adds that plan participants will continue to see transparent fees and low costs, including no loads, commissions, surrender fees, and no asset-based administrative fees. Clients will now pay a flat $5 monthly fee, which eliminates a per fund fee that was charged previously, as well as peace of mind knowing they aren’t charged when they take a distribution from their account.

For plan sponsors, benefits include improved recordkeeping and reporting, online plan management capabilities and enhanced client support.

In the partnership, Vanguard will primarily provide investment-management services, but continue to work closely with Newport Group to ensure a positive client experience for both participants and plan sponsors.

Current participants began receiving communications regarding the partnership with Newport Group, as well as information about new and enhanced plan benefits, last month, Vanguard says. It expects to transition all clients throughout the remainder of this year.
Products August 8, 2017

Alegeus Launches the 'Siri' of Consumer-Directed Health Care

Users of the Alegeus mobile app now have access to a voice-activated component designed to answer their questions about health care.

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Alegeus, a provider of consumer-directed health care (CDH) solutions, has introduced “Emma” to its mobile application. This voice-activated virtual assistant was designed to provide users with information about their benefit accounts and how to make the most of their health care money.

The firm is sending Emma out on a mission, to bridge the knowledge gap in health care literacy. According to Alegeus research, only 50% of flexible spending account (FSA) enrollees and 30% of health savings account (HSA) enrollees can pass a basic proficiency quiz.

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“The move to a more consumer-driven health care system represents a paradigm shift for consumers, leaving many struggling to comprehend and manage their increased financial responsibilities,” says Steven Auerbach, Alegeus CEO. “At Alegeus, we constantly look for ways to better empower consumers and are thrilled to introduce the first intelligent assistant for CDH benefits, which will provide our customers with constant education and support at their fingertips.”  

Emma can be asked various questions about the full range of tax-advantaged benefit accounts including FSAs, HSAs, health reimbursement accounts (HRAs), limited purpose FSAs, dependent care FSAs, and commuter accounts. The virtual application can help users learn their account balances, previous transactions, annual contribution limits and more about the general makeup of their accounts.

But despite the general complexity of navigating the health care system, Emma was built with a sense of humor. The firm notes, “From ‘knock knock’ jokes about HIPAA [Health Insurance Portability and Accountability Act] to tongue-in-cheek commentary about the complexity of medical billing, to sharing personal details about her virtual health care needs, Emma is programmed to poke lighthearted fun at some of the ironies and foibles of today’s health care system.”

Clients already using the Alegeus mobile application capabilities have access to Emma today.

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