PayFlex HealthHub TM Health Savings Account Investment Portal Guide PRESENTED BY: February 24, 2011 10802 Farnam Drive, Suite 100 Omaha, Nebraska 68154 (800) 284-4885
TABLE OF CONTENTS HEALTHHUB Section 1 HSA Investment Options Overview... 2 Section 2 Accessing the Investment Portal... 3 Participant Experience: Below the Investment Threshold... 4 Participant Experience: Above the Investment Threshold... 5 Section 3 Opening an investment account... 6 Participant Experience: Enrolled in investment account... 7 Section 4 investment account Actions... 9 Transfer Funds From HSA... 10 Transfer Funds To HSA... 12 Close investment account... 14 View investment account... 15 Section 5 The Investment Portal Home Page... 16 Section 6 Manage My Account... 21 My Balance... 22 Invest New Contributions... 24 Manage Existing Account Balances... 31 Option 1... 34 Option 2... 38 Option 3... 43 My Rate of Return... 51 Investment Portfolios... 53 Investment Returns... 56 Section 7 My Requests/Reports... 57 Account Transactions... 58 Reports/Confirmations... 60 Requests... 63 Cancelling a Transaction... 65 Section 8 Tools... 67 Proprietary and Confidential PAGE 1 PayFlex Systems USA, Inc.
SECTION 1 HSA INVESTMENT OPTIONS OVERVIEW HEALTHHUB PayFlex offers participants two levels of investment options for growing HSA assets. FDIC-insured Interest Bearing Option All contributions to the HSA are initially deposited into the FDIC-ensured interest bearing account. This option returns 1%, regardless of total HSA balance. It is from here that the participant has access to HSA funds through the debit card, online withdrawals and bill pay features. Non-FDIC Insured investment account Option Once a participant s HSA reaches the $1,000 threshold balance, he/she may establish a Non-FDIC insured investment account, transfer funds from the HSA to the investment account, invest in specific mutual funds, or select from five pre-determined portfolio allocation models created by a professional registered investment advisor (ranging from Aggressive to Conservative). While participants are not required to enroll in investment accounts, each participant has the option to open an investment account and to transfer funds between the HSA and the investment account. Note that once a participant opens an investment account, his/her HSA will be charged a monthly account fee. The fee amount is disclosed on the investment portal home page. All funds presented to the participant for investment are traded at Net Asset Value. Net Asset Value (NAV) per share is computed daily based on the closing market prices of the securities in the fund's portfolio. All mutual funds' buy and sell orders are processed at the NAV of the trade date. Proprietary and Confidential PAGE 2 PayFlex Systems USA, Inc.
SECTION 2 ACCESSING THE HSA INVESTMENT PORTAL HEALTHHUB The HealthHub HSA Investment Portal is integrated into the participant web portal, providing a seamless participant experience. To get started, the participant simply: 1. Logs into the participant web portal. 2. Selects his/her HSA. 3. Selects the Investments option on the left navigational panel. The options that display on the Investments home page change based on the participant s HSA balance. If the participant s HSA balance is below the $1,000 investment threshold, he/she will be able to research investment options through the Investment home page. If the participant s HSA balance has reached the $1,000 investment threshold, he/she will be able to research investment options as well as open or close an investment account, transfer funds to and from the investment account, create and update investment allocations and link to Morningstar, Inc. (a leading provider of independent investment research) to conduct more in-depth research about specific investment options. Proprietary and Confidential PAGE 3 PayFlex Systems USA, Inc.
Participant Experience: Below the Investment Threshold The Investments Home Page displays as follows when the participant s HSA balance is below the investment threshold. Participants may access this view at any time to research and prepare for additional investment options. The display includes: The participant s current HSA balance and the amount of additional contributions required in order to meet the investment account balance threshold An overview of the investment options available with an investment account A link to investment fund performance information provided so that the participant can conduct research on the various investment options An identification of the $3.00 monthly fee that will be assessed to the participant s HSA if he/she opens an investment account. Proprietary and Confidential PAGE 4 PayFlex Systems USA, Inc.
Participant Experience: Above the Investment Threshold The Investments Home Page displays as follows when the participant s HSA balance is above the investment threshold. The display includes: Current balance and the balance above the $1,000 threshold amount that can be invested. An overview of the investment options available with an investment account. A link to investment fund performance information provided so that the participant can conduct research on the various investment options. An identification of the $3.00 monthly fee that will be assessed to the participant s HSA if he/she opens an investment account. An Enroll Now button that the participant would click to open an investment account. Proprietary and Confidential PAGE 5 PayFlex Systems USA, Inc.
SECTION 3 OPENING AN INVESTMENT ACCOUNT HEALTHHUB To open an investment account, the participant clicks the Enroll Now button on the Investments page. The participant is presented with an Investment Terms & Agreement for review. The participant is asked to electronically accept the terms. Upon acceptance of the document, the new investment account will be established. The following confirmation is provided. As described in the confirmation, the participant s investment account will be available in approximately 24-48 hours. Proprietary and Confidential PAGE 6 PayFlex Systems USA, Inc.
Participant Experience: Enrolled in an investment account The Investments Home Page displays as follows the first time a participant accesses the page after the investment account has been opened. Fund overview information, a link to fund performance data and a disclosure of the monthly investment account fee are also provided. From here, participants can perform three actions: transfer funds from the HSA into the investment account, view the investment account, or close the investment account. These options are identified as buttons at the bottom of the page and are described in Section 4. Proprietary and Confidential PAGE 7 PayFlex Systems USA, Inc.
Once a participant has transferred funds into the investment account, the Investment Home page will also display the participant s current balance in each fund, as shown below. In addition, a Transfer Funds to HSA option is displayed at the bottom of the page. This option, also described in Section 4, allows participants to move money from the investment account back into the HSA. Proprietary and Confidential PAGE 8 PayFlex Systems USA, Inc.
SECTION 4 INVESTMENT ACCOUNT ACTIONS HEALTHHUB From the Investments home page on the participant portal, participants may take the following actions. Transfer Funds From HSA Participants select this option to transfer funds from their HSA into their investment accounts. Transfer Funds To HSA Participants select this option to transfer funds from their investment account back into their HSAs. Note: this option displays only for participants who have funds in their investment accounts. Close investment account Participants select this option to close their investment accounts, liquidating their investments and transfer all investments back to their HSAs. View investment account Participants select this option to view their investment accounts and associated funds in greater detail, manage their investment allocations, conduct research, and more. This option links the participant by single sign on to the Investment Portal. o Refer to Section 5 for additional information about the Investment Portal These actions are described on the pages that follow. Proprietary and Confidential PAGE 9 PayFlex Systems USA, Inc.
Transfer Funds From HSA Participants select this option to transfer funds from their HSA to their investment account. Any amount above the threshold can be transferred and invested. Transferred amounts are automatically applied to specific portfolios/funds based on the preferences participants establish online. o If the participant has selected a predefined investment portfolio, e.g., conservative, aggressive, etc., transferred amounts are automatically applied to the portfolio. o If the participant has not selected a predefined investment portfolio, but has established specific investment elections, transferred amounts are automatically applied across all of the participant s selected funds, according to his/her pre-established allocation percentages. o If the participant has not selected a predefined investment portfolio and has not established specific elections, transfers are automatically applied to the Schwab Money Market Fund. Transfers take approximately 4 business days to be completed. Please see Section 6 for information regarding establishing investment portfolios and investment elections. Proprietary and Confidential PAGE 10 PayFlex Systems USA, Inc.
When the participant selects Transfer Funds From HSA the following view is displayed. The maximum amount that can be transferred (amount above the threshold) is displayed. The participant enters the amount to be transferred and clicks the Submit button to initiate the transfer. A confirmation page (shown below) is displayed and the participant clicks Yes to confirm and execute the transfer, or No to cancel it. When the participant selects Yes the following confirmation is displayed. Note that funds transfers may take up to 4 business days to be completed. Proprietary and Confidential PAGE 11 PayFlex Systems USA, Inc.
Transfer Funds To HSA Participants select this option to transfer funds from their investment account to their HSA. To account for fluctuations in fund values, up to 85% of the participant s prior day s investment balance can be transferred through this option. o This maximum amount that can be transferred is displayed on the Transfer view. If the participant wishes to transfer more than 85%, then an account closure is required. o To accomplish this, the page directs the participant to select Cancel and then select Close investment account. o Refer to the Close investment account topic within the Section for details regarding this option. Transfers take approximately 4 business days to be completed. Proprietary and Confidential PAGE 12 PayFlex Systems USA, Inc.
When the participant selects Transfer Funds To HSA the following view is displayed. The maximum amount that can be transferred (85% of prior day s investment balance) is displayed. The participant enters the amount to be transferred and clicks the Submit button to initiate the transfer. A confirmation page (shown below) is displayed, and the participant clicks Yes to confirm and execute the transfer, or No to cancel it. When the participant selects Yes the following confirmation is displayed. Note that funds transfers may take up to 4 business days to be completed. Proprietary and Confidential PAGE 13 PayFlex Systems USA, Inc.
Close investment account Participants select this option to close their investment accounts. The participant can close his/her investment account at any time and closing the investment account does not close the HSA. As part of the process all investments are liquidated and the proceeds are automatically transferred to the HSA. The participant s monthly investment account fee will be assessed for the final time for the month in which the closure was completed. o E.g., if the participant closes the investment account in May, the fee is assessed for the final time in June (for the month of May). It takes up to 4 business days to complete the account closure process. A participant may elect to reopen an investment account at any time. When the participant selects Close investment account the following view is displayed. To close the investment account, the participant clicks the Submit button. A confirmation page (shown below) is displayed, and the participant clicks Yes to confirm and execute the account closure. Proprietary and Confidential PAGE 14 PayFlex Systems USA, Inc.
View investment account When the participant selects View investment account he/she is automatically linked by single sign on to the Investment Portal, which is powered by the Alliance Benefit Group (ABG), PayFlex s investment partner. The Investment Portal home page is displayed below. The home page displays a summary of the participant s balances by investment and current elections (in table and graphical form), a recent transaction listing, an online message board and account-at-a-glance information. Additional information about investment balances is provided in Section 6. Proprietary and Confidential PAGE 15 PayFlex Systems USA, Inc.
SECTION 5 THE INVESTMENT PORTAL HOME PAGE HEALTHHUB To access the Investment portal, the participant simply selects View Account from the Investments home page on the participant web portal. When this option is chosen, the participant is automatically linked by single sign on to the Investment Portal, which is powered by the Alliance Benefit Group (ABG), PayFlex s investment partner. The Investment Portal home page is displayed below. Each section of the Investment Portal home page is described on the pages that follow. Proprietary and Confidential PAGE 16 PayFlex Systems USA, Inc.
The participant s demographic information is displayed on the Personal Info section. If a participant wishes to update his/her demographic information, changes are communicated to the employer or designated benefits provider. My Account At-A-Glance identifies the participant s investment account balance, and employer. The Balance by Investment section displays the participant s current balance and election allocations for each of his/her chosen funds. Note that balances are based on the prior day s closing prices associated with each fund. The participant can click on the Manage option to make fund selections and set up allocation percentages. Refer to Section 6, Manage My Account, for additional information about managing funds and allocations. If the participant has not made any specific fund elections, all investments are automatically applied to the Schwab Money Market fund. Proprietary and Confidential PAGE 17 PayFlex Systems USA, Inc.
Account balance information is also provided in graphical format on the home page. This pie chart represents the participant s balances across all selected funds. Clicking on Graph View changes the pie chart into a bar graph. From either view, clicking on Manage allows the participant to view more detailed fund information and to make changes to his/her funds and allocations. Proprietary and Confidential PAGE 18 PayFlex Systems USA, Inc.
The Balance by Source section of the home page provides a summary of investment account balance by source. Because the only source of funds for the HSA investment account is the participant s HSA, the only source listed in this section is always HSA Account. The participant clicks on Manage to see more detailed Source information under the Manage My Account tab. The Recent Transactions section of the home page displays recent transactions that have posted to the investment account, the date those transactions occurred, and whether the transaction is pending or settled. Examples of transactions include Contributions (transfers from the HSA to the investment account), Distributions (transfers to the HSA from the investment account), Transfers (from one fund to another), Dividends that have been earned and Gains that have been realized. The participant clicks on the Manage option to view additional transaction details under the My Requests/Reports tab. The online message board provides important messages to the participant from PayFlex. The participant clicks on any message to view its details. Proprietary and Confidential PAGE 19 PayFlex Systems USA, Inc.
At the top of the home page are four navigational tabs: My Account Summary home page Manage My Account establish and manage funds and allocation percentages My Requests/Reports access to transaction and investment account statement information Tools access to online notifications My Account Summary has been described in this Section. The other three tabs are described in the Sections that follow. Proprietary and Confidential PAGE 20 PayFlex Systems USA, Inc.
SECTION 6 MANAGE MY ACCOUNT HEALTHHUB When the participant clicks on the Manage My Account tab at the top of any view, or when he/she clicks on Manage on the balance sections of the Investment Portal s home page, the following view is displayed. There are seven options within the Manage My Account tab. These are listed in the left navigational panel. My Balance (landing page) Invest New Contributions Manage Existing Account Balances My Rate of Return Investment Profiles Investment Returns These options are described on the pages that follow. Proprietary and Confidential PAGE 21 PayFlex Systems USA, Inc.
My Balance My Balance is the first option on the Manage My Account s left navigational panel. It is also the default landing page for this tab in the Investment Portal. The Account Balance view is displayed below and described in detail on the pages that follow. Proprietary and Confidential PAGE 22 PayFlex Systems USA, Inc.
The Account Balance view includes two sub-tabs: Investment and Source. Within the Investment sub-tab, for each of the participant s current funds, the following is displayed: balance and vested balance (these two fields are always identical because participants are 100% vested for their HSA balance), current election percentage, current number of shares and price per share. There are two actions that the participant can take from this view: Change Investment Elections and Transfer Investments. These are described in detail later in this section; The other Account Balance sub-tab is Source. When the participant clicks on Source the following view is displayed. Details of the investment account balance by source are displayed. Balance and Vested Balance are always identical. Vested Percent is always 100%. In addition, because the only source of funds for the HSA investment account is the participant s HSA, the only source listed in this section is always HSA Account. Proprietary and Confidential PAGE 23 PayFlex Systems USA, Inc.
Invest New Contributions The Invest New Contributions option enables participants to establish and change funds that will be used when future amounts are transferred from the HSA to the investment account, that is, new contributions to the participants investment account. Note: This option does not control the funds and percentages that apply to current investments. Thus, entries on this view do not impact current investments. Such changes are made through the Manage Existing Account option that is discussed later in this section. A sample of the Investment Elections view is shown on the page that follows and then described in greater detail. Proprietary and Confidential PAGE 24 PayFlex Systems USA, Inc.
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The top portion of this view reminds the participant that these elections impact only future contributions to the investment account and informs that participant that the minimum allocation to any selected fund is 1% and that changes require one day to be completed. The middle section of the view displays all available investment funds and the New Election Percentages that are currently in place (Current Allocation column). To change the percentages allocated to each fund, the participant simply enters the new percentage in the New Election column. A Submit button is located at the bottom of the view. Clicking Submit updates the participant s allocation. As an educational tool, the symbol that appears to the right of applicable funds and provides the participant with a link to the Fees/Trading Rules (if any) that apply to that fund. Proprietary and Confidential PAGE 26 PayFlex Systems USA, Inc.
For example, clicking on the next to Fidelity U.S. Bond Index Fund displays the following information as a separate browser window. The bottom portion of the view provides a graphical representative of the current and projected New Election percentages by fund and also provides a Graph button that changes the graph from a pie chart to a bar chart, a Submit button that saves the participant s allocation changes and a Reset button that cancels the participant s proposed allocation changes. In addition, an optional check box is displayed at the bottom of the view. Clicking on this check box automatically applies these changes to all current investments (in addition to these future elections). Proprietary and Confidential PAGE 27 PayFlex Systems USA, Inc.
Note: Participants may also select specific investment portfolios: Conservative Portfolio Moderately Conservative Portfolio Moderate Portfolio Moderately Aggressive Portfolio Aggressive Portfolio These are listed at the end of this view. To select one or more of these portfolios, the participant simply enters the percentage of New Elections that should be applied to that portfolio. Proprietary and Confidential PAGE 28 PayFlex Systems USA, Inc.
When the participant updates his/her New Election percentages and clicks Submit the following review page is displayed. It includes a summary of the current allocations and proposed New Elections, including graphical representations. A column in which the participant can indicate that he/she has reviewed each fund s prospectus and both Continue and Cancel buttons are provided. Continue will confirm these changes, while cancel will cancel these changes. Note: In order to proceed with this transaction, the participant is required to click on the Yes checkbox next to each investment, indicating that he/she has reviewed the prospectus. Prospectus information is provided under the Investment Profiles option in the left navigational panel. Proprietary and Confidential PAGE 29 PayFlex Systems USA, Inc.
When the participant clicks Continue the following confirmation page is displayed. The confirmation page identifies that any trade completed after 2:45 p.m. CT each business day will be processed on the next business day. The page also directs the participant to the My Requests/Reports tab to view or cancel this transaction. Refer to Section 7 for additional information about these options. Proprietary and Confidential PAGE 30 PayFlex Systems USA, Inc.
Manage Existing Account Balances The Manage Existing Account Balances option enables participants to establish and change funds that will be used for currently invested amounts within the participants investment account. Note: This option does not control the funds and percentages that apply when new amounts are transferred from the HSA to the investment account. Thus, entries on this view do not impact future investments. Such changes are made through the Invest New Contributions option that was previously discussed in this section. The Manage Existing Account Balances view is shown on the page that follows and then described in greater detail. Note that all changes to existing balance allocations can take up to 4 business days to be completed. Proprietary and Confidential PAGE 31 PayFlex Systems USA, Inc.
This view is similar to the one used to manage New Elections (previously discussed) and includes a list of all funds, links to Fees and Trading Rules, and current balances in each fund along with the current balance percentage for each fund. A graphical representation is also provided at the bottom of the display. Proprietary and Confidential PAGE 32 PayFlex Systems USA, Inc.
Participants use this view to move balances from one fund to another. The platform offers three different transfer options, each with different entry requirements and balance results. The options are listed in the dropdown box at the top of the display (highlighted below). Option 1 Exchange my investments with other investments in the Account The participant uses this option to exchange money between investments. The participant transfers by percentage using the From and To columns. Note that To column must total 100% and the participant may not transfer into a fund that he/she also transferring out of. Option 2 Rebalance my current investments to Target % The participant uses this option to change current investments to match specified target percentages for each fund. If the participant would also like new contributions to be allocated to match these target percentages, he/she clicks Invest my new contributions to match my Target % before clicking Submit. Option 3 Rebalance my current investments to Contribution % This option realigns the ending balance in each fund to match how the participant is investing new contributions. Note: The participant must have already established New Election allocations in order to use this option. These options are described on the pages that follow. Proprietary and Confidential PAGE 33 PayFlex Systems USA, Inc.
Option 1 Exchange my investments with other investments in the Account The participant uses this option to exchange money between investments. To use this option, the participant selects Option 1 from the dropdown box at the top of the display. The following view is shown. The From column provides entry fields for each of the funds in which the participant currently has money, while the To column provides entry fields for every fund type available. Proprietary and Confidential PAGE 34 PayFlex Systems USA, Inc.
To initiate an Option 1 transfer, the participant would: 1. Select a fund that he/she wants to transfer money out of and enter the percentage of the balance that should be transferred. a. In the example below, 50% of the balance in the Schwab Money Market should be transferred. 2. Select the fund(s) into which the transferred money should be deposited. a. In this example, 30% of the balance transferred out of the Schwab Money Market account should be transferred into Fidelity U.S. Bond Index Fund; 50% should be transferred into DFA Inflation-Protection Securities I; and 20% should be transferred into Vanguard Dividend Growth b. Note that the To percentages must always equal 100% so that all of the money transferred out of a current investment are accounted for. c. Also note that the Projected Balance column automatically updates to reflect the participant s projected balance in each fund based on the changes being made 3. Click Submit to initiate the transfer. Proprietary and Confidential PAGE 35 PayFlex Systems USA, Inc.
The following review page is provided. It provides a summary of the current and proposed allocations, including graphical representations. In order to proceed with this transaction, the participant is required to click on the Yes checkbox next to each investment, indicating that he/she has reviewed the prospectus. Prospectus information is provided under the Investment Profiles option in the left navigational panel. Both Continue and Cancel buttons are displayed. Continue will confirm these changes, while cancel will cancel them. Note: If the participant wants to reallocate multiple funds, Option 2 or 3 (described on the pages that follow) provide a more effective mechanism for accomplishing this. Proprietary and Confidential PAGE 36 PayFlex Systems USA, Inc.
When the participant clicks Continue the following confirmation page is displayed. The confirmation page identifies that any trade completed after 2:45 p.m. CT each business day will be processed on the next business day. The page also directs the participant to the My Requests/Reports tab to view or cancel this transaction. Refer to Section 7 for additional information about these options. Proprietary and Confidential PAGE 37 PayFlex Systems USA, Inc.
Option 2 Exchange my investments with other investments in the Account The participant uses this option to change current investments to match specified target percentages for each fund. To use this option, the participant selects Option 2 from the dropdown box at the top of the display. The following view is shown. A Target % column with entry fields for each fund available is displayed. The participant simply enters percentages for each desired fund. All of the participants current investments in all funds are then reallocated so that their balances match the targeted percentages. Proprietary and Confidential PAGE 38 PayFlex Systems USA, Inc.
In the example below, the participant s investments are allocated across four funds. As the "Percent of Balance" column indicates, variability in fund performance over time changes the participant s actual balance as a percentage of each fund shifts in accordance with market under/over-performance. For example, 39.74% of the participant s overall balance is represented by the Schwab Money Market fund, 29.88% is represented by DFA Inflation-Protected Securities I, etc. To rebalance these investments back to target, the participant identifies the percentage of the overall account balance that should be allocated to each fund under the "Target %" column. This transaction type can also be used to allocate your account balance to new target percentages. The system will place the buy/sell transactions as necessary to bring the balance within each fund to the target percentage. In this example, the overall balance should be shifted as follows: 40% to the Schwab Money market 30% to DFA Inflation-Protected Securities I 20% to Blackrock Equity Dividend Fund Class A 10% to Schwab S&P Index Also, in this example, only the percentages and not the funds themselves were changed; however, participants may also select different funds as part of this entry. Proprietary and Confidential PAGE 39 PayFlex Systems USA, Inc.
At the bottom of the display, graphical representations of both the current and projected balances are shown. In addition an option to Update my election percentages in all sources to match my target% is shown. By clicking this checkbox, the participant applies these allocation percentages to all incoming elections (in addition to these existing balances). The participant clicks Submit to complete the entry. Proprietary and Confidential PAGE 40 PayFlex Systems USA, Inc.
The following review page is provided. It provides a summary of the current balance percentages and the proposed new balance percentage splits, including graphical representations. In order to proceed with this transaction, the participant is required to click on the Yes checkbox next to each investment, indicating that he/she has reviewed the prospectus. Prospectus information is provided under the Investment Profiles option in the left navigational panel. Both Continue and Cancel buttons are displayed. Continue will confirm these changes, while Cancel will cancel them. Proprietary and Confidential PAGE 41 PayFlex Systems USA, Inc.
When the participant clicks Continue the following confirmation page is displayed. The confirmation page identifies that any trade completed after 2:45 p.m. CT each business day will be processed on the next business day. The page also directs the participant to the My Requests/Reports tab to view or cancel this transaction. Refer to Section 7 for additional information about these options. Proprietary and Confidential PAGE 42 PayFlex Systems USA, Inc.
Option 3 Rebalance my current investments to Contribution % This option realigns the ending balance in each fund to match how the participant is investing new contributions. To use this option, the participant selects Option 3 from the dropdown box at the top of the Manage Existing Account Balance view. Note: The participant must have already established New Election allocations in order to use this option. New Election allocations are established under Invest New Contributions left navigational panel option within the Manage My Account tab. When Option 3 is selected, the following view is shown. Two rebalancing options are presented: One-Time and Recurring. When one-time is selected, the rebalancing instructions are executed once. When recurring is selected, the participant is presented with additional options that allow him/her to establish the frequency at which these rebalancing instructions will be executed. Proprietary and Confidential PAGE 43 PayFlex Systems USA, Inc.
One-Time Rebalancing Request When the participant clicks on the One-time Rebalance and then Submit, the following summary view is displayed. This rebalance request will realign the ending balance in each fund to be equal to the percentage used to allocate the participant s current contributions. The view provides a summary of the rebalancing actions requested. In order to proceed with this transaction, the participant is required to click on the Yes checkbox next to each investment, indicating that he/she has reviewed the prospectus. Prospectus information is provided under the Investment Profiles option in the left navigational panel. Both Continue and Cancel buttons are displayed. Continue will confirm this rebalancing request, while Cancel will cancel it. Proprietary and Confidential PAGE 44 PayFlex Systems USA, Inc.
When the participant clicks Continue the following confirmation page is displayed. The confirmation page identifies that any trade completed after 2:45 p.m. CT each business day will be processed on the next business day. The page also directs the participant to the My Requests/Reports tab to view or cancel this transaction. Refer to Section 7 for additional information about these options. Proprietary and Confidential PAGE 45 PayFlex Systems USA, Inc.
Recurring Rebalancing Request When the participant clicks on the Recurring Rebalance and then Submit, the following summary view is displayed. Just like the one-time rebalance request, the recurring rebalance request will realign the ending balance in each fund to be equal to the percentage used to allocate the participant s current contributions. However, with this option, the participant can also when and how often rebalancing will occur. The following recurring options are presented: Rebalance frequency How often rebalancing should occur: every month, every 3 months, twice a year, once a year. Day to rebalance The specific day of the month (1-28, or last day of the month) that the recurring rebalancing should be performed. Starting rebalance date The calendar date on which the first rebalance should be performed. Threshold percent for rebalance The minimum percent of balance variation above which the rebalancing should be performed, e.g., 1%. Proprietary and Confidential PAGE 46 PayFlex Systems USA, Inc.
When the participant clicks Submit a confirmation message and an associated dialogue box are displayed. The confirmation, highlighted above with a symbol, identifies that a recurring rebalance transaction has been established and provides the date of the next schedule rebalance. The dialogue box confirms that the transaction request has been added and that the participant may view the request through the My Requests/Reports tab. Refer to Section 7 for additional information about these options. Proprietary and Confidential PAGE 47 PayFlex Systems USA, Inc.
The participant may view, modify or remove the recurring rebalancing instructions at any time through the same Manage Existing Account Balances option that was used to establish it. As shown in the view below, when recurring rebalancing instructions are in place, a reminder message is displayed at the top of the Managing Existing Account Balance view. To view, modify or delete the rebalancing instructions, the participant clicks on the message: Click here to view and/or modify your recurring rebalance transaction. Proprietary and Confidential PAGE 48 PayFlex Systems USA, Inc.
The following view is then displayed. To modify the request, the participant updates the fields as needed and presses Submit. Proprietary and Confidential PAGE 49 PayFlex Systems USA, Inc.
To cancel the recurring rebalancing request, the participant selects Remove Transaction from the Select balance frequency dropdown box (as shown below) and presses Submit. The following confirmation dialogue box is displayed. The participant clicks OK to confirm the change. When the participant clicks OK the following message is displayed. Proprietary and Confidential PAGE 50 PayFlex Systems USA, Inc.
My Rate of Return The My Rate of Return option shows the participant s personal rate of return based on his/her investment activity. These returns are specific to the participant s investment account and can be viewed by month, quarter or year by selecting one of the three viewing tabs to the right of the graph. Note: the participant s specific rate of return is impacted by the timing of his/her investment into and out of each fund and, therefore, may not be identical to the fund s overall rate of return as displayed in the Investment Returns view. When the participant selects My Rate of Return, the following view is displayed. The view includes an Investment Filter dropdown box that lists all of the funds in which the participant is currently invested. The default view is Total Return. Date range filtering options are also provided. Finally, separate monthly, quarterly and annual tabs are provided. Proprietary and Confidential PAGE 51 PayFlex Systems USA, Inc.
In the example below, the annual rate of return for the Schwab S&P Index is shown. Proprietary and Confidential PAGE 52 PayFlex Systems USA, Inc.
Investment Profiles Participants can select this option to view a list of all of the funds that are available. From here, the participant can view Fee/Trading Rules and conduct fund-specific research. The Investment Portal is integrated with Morningstar, Inc. (a leading provider of independent investment research) so that participants have access to the latest market information about each fund. When the participant selects Investment Profiles, the following view is returned. All available funds are listed. Proprietary and Confidential PAGE 53 PayFlex Systems USA, Inc.
To link to Morningstar, Inc. (a leading provider of independent investment research) to conduct research on a specific fund, the participant clicks View in the Fund Info Column next the fund that he/she wishes to research. In this example, View for Fidelity U.S. Bond Index Fund was selected. The participant is automatically linked to Morningstar via a separate browser window, as shown below. To view prospectus information, click on the Filings tab. Proprietary and Confidential PAGE 54 PayFlex Systems USA, Inc.
From the Filings tab, the participant can select the prospectus document to be reviewed in PDF format. Notes Regarding Morningstar: Participants can use Morningstar to research any fund that is available for the HSA investment account. They may also use Morningstar to conduct other types of investment research. There are no additional fees associated with the use of the Morningstar site. Morningstar also offers more extensive research tools and options beyond what is included with the HSA Investment Portal. o To take advantage of these additional capabilities, participants may elect to separately subscribe to Morningstar. Subscription fees (assessed by Morningstar directly to the participant) would be assessed if a participant were to subscribe separately to Morningstar. o Note that a separate Morningstar subscription is NOT required to conduct the research tasks supported by the Investment Portal. Investment Returns Proprietary and Confidential PAGE 55 PayFlex Systems USA, Inc.
The final option within the Manage My Account tab is Investment Returns. Participants select this option to view investment return information for all available funds not just the ones in which they have invested. The following view is returned and includes returns over 3 months, 1 year, 3 years, 5 years and since the fund s inception. Note that a link to the My Rate of Return option (previously discussed in this Section) is also provided so that the participant can easily review returns for their specific investment activity. Proprietary and Confidential PAGE 56 PayFlex Systems USA, Inc.
SECTION 7 MY REQUESTS/REPORTS HEALTHHUB When the participant clicks on the My Requests/Reports tab at the top of any view, or when he/she clicks on Manage on the transaction sections of the Investment Portal s home page, the following view is displayed Three options are provided in the left navigational panel. Account Transactions (landing page) Reports/Confirmations Requests These options are described in detail on the pages that follow. Proprietary and Confidential PAGE 57 PayFlex Systems USA, Inc.
Account Transactions Account Transactions, which is the landing page for the My Requests/Reports tab provides participants with the ability to search for and display specific transactions. The following view is returned. To narrow the search, participants can filter by: Investment specific fund name (select via dropdown list) Source will always be HSA Transactions to display distributions, dividends, fees (not currently applicable), contributions (into the investment account) and transfers Show account history from from and to dates Transaction status all, pending, settled There is also a check box for only display records with redemption fees. A participant would select this option to view only those transactions that included fees that are outlined in the Fees/Trading Rules associated with that fund. Proprietary and Confidential PAGE 58 PayFlex Systems USA, Inc.
Sample search results are shown below. Clicking on Details for any transaction line expands the display to include additional information, as shown below. The participant can click on Download Detail to download selected search results to Excel. Proprietary and Confidential PAGE 59 PayFlex Systems USA, Inc.
Reports/Confirmations Participants select Reports/Confirmations to view and download a periodic HSA investment account statement. The following display is shown. The participant selects Health Savings Account Statement, identifies the plan year and then selects the From Date and To Date to establish the time horizon for the generation of the statement. Proprietary and Confidential PAGE 60 PayFlex Systems USA, Inc.
The statement is built in real time and the following message is displayed. Click on Open Report to view the statement. Statements are generated in PDF format and may be printed or downloaded at the participant s convenience. After the statement has been generated, it is automatically loaded on the page, as shown below. A sample statement is provided on the page that follows. Proprietary and Confidential PAGE 61 PayFlex Systems USA, Inc.
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Requests The final option in the My Requests/Reports tab is Requests. Participants select this option to view details about transactions they have initiated. These include some of the same transactions identified in the Account Transactions view, e.g., transfers, and contributions, plus changes that the participant makes to allocations. The view is shown below. Participants may filter search results by the type of transaction, the transaction status (processed or unprocessed) by date, or by the transaction s confirmation number. Each transaction initiated by a participant is assigned a confirmation number that is displayed when the transaction is completed. Once the search criteria have been entered, the participant clicks Submit to generate the transaction listing. Proprietary and Confidential PAGE 63 PayFlex Systems USA, Inc.
In the example below, a search for allocations that were processed after 1/2/2011 provided one result. Clicking on Details expands the display to include additional information about this transaction. Proprietary and Confidential PAGE 64 PayFlex Systems USA, Inc.
Cancelling a Transaction Participants can also use the Requests option to cancel a pending transaction. In the view below, a pending reallocation transaction has been displayed. An Actions Column is displayed. To cancel this transaction, the participant simply clicks on the icon in the Actions column. Only pending transactions may be cancelled. The platform processes transactions each business date at 6:00 a.m. CT, 12:00 p.m. CT and 2:45 p.m. CT. The icon only displays next to transactions that are pending. Once the transaction is picked up for processing, it cannot be cancelled. Proprietary and Confidential PAGE 65 PayFlex Systems USA, Inc.
When the participant clicks on the icon, the following view is displayed. To confirm the cancellation of this transaction, the participant clicks Continue. To stop the cancellation of this transaction, the participant clicks Cancel. When the participant click Continue the following confirmation is displayed. Proprietary and Confidential PAGE 66 PayFlex Systems USA, Inc.
SECTION 8 TOOLS HEALTHHUB PayFlex-generated messages are displayed on the Investment Portal s home page and also under the Tools tab. The Tools tab allows participants to view and delete notifications. To remove a notice, the participant clicks in the checkbox in the Don t Show Message Again column next to the message the/she wants removed and then clicks Submit. Proprietary and Confidential PAGE 67 PayFlex Systems USA, Inc.