Health Care Service Corporation 401(k) Review & Grade
The 401k Plan
Richardson, TXFinance & Insurance32,760 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$2,552Employer $ per active participant
$6,414Employee $ saved per active participant
0.01%Direct admin cost, % of plan assets
$3.9BNet plan assets, end of year
$99,914Average balance per account
Score breakdown
- Employer generosity6.3 / 5013th percentile for employer $ per participant
- Low cost23.9 / 2596th percentile for low admin cost vs. same-size plans
- Employee saving1.1 / 157th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score38 / 100 · Grade D
This plan vs. peers
Peers: Finance & Insurance plans with 10,000+ active participants (72 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 13th |
| Lower admin cost | 96th |
| Employee saving | 7th |
| Peers that auto-enroll | 74% |
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Red flags from the filing
Corrective distributions: the plan refunded $3,190 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Health Care Service put in about $2,552 per active participant, below the typical peer ($5,179). Any match is still an instant return, so contribute enough to get all of it.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $83,598,191 |
| Participant (employee) contributions | $210,135,783 |
| Other contributions (incl. rollovers in) | $24,613,330 |
| Administrative expenses paid from the plan | $394,380 |
| Contract administrator fees | $46,112 |
| Investment advisory & management fees | $155,483 |
| Other admin expenses | $7,175 |
| Benefits paid out | $267,136,042 |
| Net assets, start / end of year | $3.4B / $3.9B |
| Active participants, start / end of year | 29,059 / 36,460 |
| Participants with account balances | 39,196 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Ernst & Young LLP |
Largest service providers (Schedule C)
| Towers Watson Investment Services I | $147,442 reported compensation |
| Empower Annuity Insurance Company O | $128,067 reported compensation |
| Ernst & Young LLP | $49,543 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250915133235NAL0000748611001, received 2025-09-15, EIN 36-1236610, plan #005, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.