Treasurer Torsella Announces Substantial Fee Reduction for PA 529 Investment Plan Account Holders

HARRISBURG, Pennsylvania, Feb. 15 -- Pennsylvania Treasurer Joe Torsella issued the following news:

Pennsylvania Treasurer Joe Torsella today announced that PA 529 Investment Plan (PA 529 IP) account holders will see a substantial fee reduction as the result of Treasury renegotiating contracts with its record-keeper, Ascensus, and investment manager, Vanguard, bringing the program's fees down to among the lowest for any comparable state plan.

"Every parent is doing their very best for their family, and I want Treasury to do our very best for parents. One of the ways Treasury can do that is to put families first. As a parent, I know that families aren't just saving for college, they are building futures. I will continue to be a strong advocate for families to ensure we keep their costs down, and their savings up."

Pennsylvania Treasurer, Joe Torsella

Treasury is reducing the asset-based fees that PA 529 IP account owners pay by 10.5 basis points, a nearly 1/3rd reduction from their current level. PA 529 IP fees will now range from 0.23-0.33 percent, depending upon the investment option selected, a 24.4 - 31.8 percent reduction from current levels. Over the life of the five-year contract Treasury projects that savings will be approximately $17.5 million.

"Parents already know how expensive post-secondary education can be, and how important it is to start saving early. I'm proud to keep fighting for lower fees, so more of Pennsylvanian's hard-earned money can go to our children's futures."

Pennsylvania Treasurer, Joe Torsella

The Pennsylvania 529 College Savings Program provides one of the best ways to save for education through two distinct plans - the PA 529 Guaranteed Savings Plan (PA 529 GSP) and the PA 529 Investment Plan (PA 529 IP). The PA 529 GSP is a simple, lower-risk way to save for tomorrow's post-secondary expenses at today's rates. Account holders that save enough for a semester at a post-secondary institution rates today, will have enough for a semester at that school in the future - no matter when or how much tuition has gone up in the meantime. The PA 529 IP provides the account holder with the ability to select from a list of 15 investment options from Vanguard, one of America's largest financial service companies. Funds range from conservative to balanced to aggressive in their investment approaches. PA 529 IP returns are based on financial market performance, whereas PA 529 GSP returns are based on tuition increases.

Current and future college students in Pennsylvania have over $4.6 billion saved for higher education, between both PA 529 College Savings Plans.

To learn more about the PA 529 College Savings Program, or to open an account, please visit PA529.com.