HARRISBURG – Pennsylvania Treasurer Stacy Garrity has announced two new fee cuts for the Morningstar Gold Rated PA 529 Investment Plan (IP) as a result of continued program account growth and asset milestones.
“Our PA 529 IP is already one of the best programs in the country, and these fee cuts make it even better,” Garrity said.
“I’m thrilled that so many families are saving for their children’s future education with PA 529, because that success is what made these new fee cuts possible.
“It’s never too late to start saving, but an early start helps make future education and career goals a reality without a heavy debt. I encourage families across the state to learn more about our great PA 529 program and to start saving for their children and grandchildren.”
PA 529 IP account owners will see a 0.25 basis point fee reduction because PA 529 assets have surpassed $5.5 billion. An additional reduction of 0.50 basis points is the result of the combined assets of the PA 529 IP and the PA 529 Guaranteed Savings Plan (GSP) exceeding $8 billion.
Combined with the multiple fee cuts implemented by Garrity previously, including one earlier this year, these reductions will save PA 529 IP account owners nearly $17 million by the end of the current fiscal year.
Garrity negotiated the latest fee cuts in cooperation with Ascensus and Vanguard, Treasury’s partners in administering the PA 529 program.
More than 190,000 families have saved more than $5.6 billion with the PA 529 IP, which earned its second consecutive Morningstar Gold Rating in October 2024.
Morningstar recognized Garrity’s “exceptional oversight and advocacy,” and complimented Treasury for “approach[ing] its responsibilities with rigor, bringing team members’ investing, business and legal acumen to bear.”
Morningstar also praised Treasury for reducing fees and securing favorable contract terms with strong partners, along with Treasury’s work to enhance outreach, accessibility and participant research efforts.
The PA 529 IP allows families to choose from a variety of investment options, including Target Enrollment Portfolios, which adjust asset allocation and risk as a child reaches the anticipated age of enrollment in higher education.
PA 529 College and Career Savings Program accounts are designed to help Pennsylvania families steadily and strategically save in a tax-advantaged way for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses. Money saved in PA 529 accounts does not affect eligibility for Pennsylvania state financial aid.
To learn more about saving with PA 529, visit pa529.com or call 800-440-4000.
