In line with our previous projections, we expect that 8 million to 10 million registered accounts will convert to sub-accounting for 2012. We estimate approximately 30% of those accounts will convert to DST's sub-accounting platform. We think a majority of the accounts will probably convert in the first half of 2012, although we can't determine the exact timing of conversions.
Turning to defined contribution participants. They increased by 100,000 in the quarter. When you look at defined contribution plans, they need to maintain the accounts of participants who terminate their employment during a given year until the second quarter of the following year to support tax and other reporting requirements. We actually see annually a reduction of the terminated participants processed during the second quarter. We have new client conversions, however, scheduled at 1.3 million participants for late 2012 and '13. And of that total, we anticipate the conversion of 600,000 participants in the fourth quarter of this year and the remainder throughout 2013.
During the first quarter of '12, the pharmacy claims processed by Argus Health Systems increased 8.2% to 99.2 million claims. That was pretty much driven by new client conversions. Health Solutions revenues, they increased principally from software-related revenues.
Our equity in BFDS earnings was unchanged from the 2011 quarter. Their average balances for the period declined slightly to $1.2 billion from $1.3 billion last year. The interest rates that BFDS earned on those balances decreased from 16 basis points to 10 basis points, and as we continue to reiterate, that negatively impacts BFDS results.Read the rest of this transcript for free on seekingalpha.com