CalCPA ProtectPlus

ACS Announces ACS|Mellon HSA Solution Interest Rate Adjustment

The current economic climate and continued downward pressure on interest rates have made it necessary to decrease the interest rate we pay HSA account holders on the demand deposit checking account.

Effective July 1, 2009, the interest rate paid on our standard HSA product will be (APY) 0.100%.

While the reality of the current economic climate requires this action, we will continue to closely monitor interest rates and make responsive adjustments to our product.

This interest rate change will be reflected on the July HSA statements sent to all ACS|Mellon HSA Solution account holders in early August.

This article was written by Connie Chuang and Gage C. Dungy, attorneys with the labor and employment law firm of Liebert Cassidy Whitmore.

The Federal Stimulus Package Incorporates New Temporary Revisions to COBRA/Cal-COBRA, Including a Federal Subsidy for Qualified Individuals.

Federal law (COBRA – employers with 20 or more employees) and California law (Cal-COBRA – employers with 2-19 employees) provide individuals who have experienced a “qualifying event” the ability to continue their health insurance benefits for a period of up to 36 months by having the covered individual pay up to 102% of the full health insurance premium cost.

A “qualifying event” under COBRA/Cal-COBRA includes, among other reasons, voluntary termination of employment, involuntary termination of employment (except for gross misconduct), and a reduction in hours resulting in a loss of health benefits.

On February 17, 2009, President Barack Obama signed into law a federal stimulus package – also known as the “American Recovery and Reinvestment Act of 2009” – (or, visit Recovery.gov)in an attempt to address the current economic downturn in the United States. (continue reading…)