Morningstar highlights “exceptional oversight and advocacy” and praises fee cuts

Harrisburg, PA –  Pennsylvania Treasurer Stacy Garrity announced today that the PA 529 College and Career Savings Program Investment Plan (IP) received a Gold Rating from Morningstar for the second consecutive year, ranking it as one of the very best 529 plans in the nation. This is the highest designation possible through the firm’s review of the top 529 education savings plans of 2024.

“This is outstanding news for every Pennsylvania family using the PA 529 IP to save for education,” Treasurer Garrity said. “We’ve cut fees, improved the investment options, eliminated the minimum deposit, and more – all designed to make this savings plan work even better for our account owners. Earning another Gold Rating from Morningstar confirms that the PA 529 IP is a fantastic way to save for your child’s or grandchild’s future education.”

Only five 529 plans across the nation earned a Gold Rating this year: Pennsylvania is joined by Alaska, Illinois, Massachusetts, and Utah.

In its rating, Morningstar noted Treasurer 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 offers a variety of investment options, including target enrollment date portfolios, which automatically adjust asset allocations to become more conservative as a child reaches the anticipated date of enrollment in post-high school education.

Before earning its first-ever Gold Rating in 2023, the PA 529 IP previously earned three consecutive Silver Ratings from Morningstar (2020, 2021, 2022) and one Morningstar Bronze Rating (2019).

“Earning our first Gold Rating wasn’t easy, and we’ve worked even harder to keep it,” Treasurer Garrity said. “My team and I are committed to showing exactly why saving with PA 529 is a smart and affordable way to prepare for your child’s postsecondary education, no matter what path they may take. These plans are flexible and can be used for anything from an apprenticeship or technical training to a four-year degree and beyond.”

Treasurer Garrity has led efforts to make PA 529 plans accessible and affordable for families across the state by eliminating the minimum deposit to open an account, reducing the minimum contribution to one dollar, and cutting fees multiple times – adding up to more than $17 million in savings for families across the whole PA 529 program, including the PA 529 Guaranteed Savings Plan (GSP), by the end of the current fiscal year (2024-25).

There are more than 304,000 PA 529 accounts across both plans, including more than 190,000 PA 529 IP accounts and more than 113,000 PA 529 GSP accounts with more than $8 billion in assets.

PA 529 plans help families steadily and strategically save for future educational expenses like tuition, fees, books, equipment, room and board and more at qualifying technical, collegiate and apprenticeship programs. PA 529 plans also offer significant state and federal tax advantages, and saving with PA 529 does not impact Pennsylvania state financial aid eligibility.

Treasury also administers Keystone Scholars which provides a $100 education investment for every child born to, or adopted by, a Pennsylvania family in 2019 or later. This jumpstart on education savings, which uses no taxpayer money, is invested by Treasury, and can be used for qualifying technical training, collegiate and apprenticeship expenses once the child turns 18. Families can open a companion PA 529 account to continue saving on their own.

To learn more about PA 529 accounts, visit pa529.com, call 800-440-4000 or email pa529@patreasury.gov.

 

Information provided to TVL by:
Samantha Heckel