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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 2, 2024 10:02 AM |
|---|---|
| From: | Senator Scott Martin |
| To: | All Senate members |
| Subject: | Designating May 29, 2024, as “College and Career Savings Day” in Pennsylvania |
| In the near future, I will reintroduce a resolution designating May 29, 2024, as “College and Career Savings Day” in Pennsylvania. When the Pennsylvania 529 College and Career Savings Program was signed into law as Act 11 of 1992 and officially established in 1993, the Commonwealth acknowledged the significance and difficulties associated with saving for postsecondary education, encompassing various educational paths such as four-year colleges, community colleges, technical schools, and approved apprenticeship programs. "College and Career Savings Day" on May 29 aims to further encourage parents and families to save for their children’s future by highlighting the availability of tax-advantaged programs tailored for postsecondary education and career preparation, thereby lessening the reliance on borrowing. The program offers Pennsylvanians the option to select between two savings plans: the PA 529 Guaranteed Savings Plan, where savings increase in tandem with college tuition inflation, or the PA 529 Investment Plan, where returns are tied to market performance. PA 529 accounts provide attractive tax advantages, including a state income tax deduction for contributions and exemption from federal and state income taxes on investment growth. Furthermore, PA 529 account assets do not impact eligibility for Pennsylvania state financial aid and can be utilized for covering expenses such as tuition, fees, books, accommodation, and other qualified costs at most educational institutions. To date, more than 298,000 families are currently saving with PA 529, including the more than 185,000 families who are saving with the PA 529 Investment Plan, which in recent months was upgraded to a Gold Rating by Morningstar; one of only two 529 plans in the nation to achieve such a designation. In its rating upgrade, the financial services firm highlighted the Pennsylvania Treasury’s effective and unrelenting advocacy on behalf of investors, enhanced outreach and accessibility efforts, and a reduction in plan fees, positioning the PA 529 IP as less expensive than the vast majority of its competitors. In the last year alone, Treasurer Stacy Garrity has cut fees associated with the program on three separate occasions, creating savings for families of nearly $11 million. The PA 529 College and Career Savings Program has helped many Pennsylvanian parents and families save money for their children when choosing a postsecondary education or a career preparation path. Please join me in cosponsoring this resolution to raise awareness of the importance of this program. |
Introduced as SR297