HARRISBURG, PA — Pennsylvania will distribute nearly $107 million in surplus investment earnings to about 107,000 eligible PA 529 Guaranteed Savings Plan accounts through $1,000 contributions, giving participating families an additional education-savings benefit after the fund reached 156% of its obligations as of June 30.
State Treasurer Stacy Garrity’s office reported that $106.9 million will be distributed among 106,914 qualifying accounts, representing about 89% of participants in the Guaranteed Savings Plan, or GSP.
The money will come from a $1.06 billion surplus in the GSP Fund, which was 156.04% funded as of June 30, according to Treasury. The funding ratio measures the plan’s assets relative to its obligations.
“We are thrilled to provide this incredible boost for families who depend on the PA 529 GSP for future education and training needs,” Garrity stated, attributing the surplus to participant savings and investment returns managed by Treasury.
Eligibility is based on account balances and contribution activity as of July 31. Accounts qualify if they had a balance of at least $1,000, or if they had at least $100 and received contributions since 2022.
Eligible account owners do not need to apply for the contribution. Treasury indicated that the $1,000 deposit will appear on third-quarter account statements.
The distribution applies only to the PA 529 GSP. Participants in the separate PA 529 Investment Plan are not eligible for the bonus.
The GSP, established in 1992, is structured differently from a conventional investment account. Families purchase education savings at tuition levels ranging from community colleges to higher-cost universities, with account growth tied to tuition inflation rather than directly to financial-market performance.
Money in PA 529 accounts can be used for qualifying higher education, technical training, apprenticeships, credentials and certain K-12 education expenses. Treasury also noted that PA 529 assets do not affect a student’s eligibility for Pennsylvania state financial aid.
The $1,000 contribution follows a series of fee reductions for the GSP. Treasury has waived account fees for five consecutive years, with the agency estimating cumulative savings to participating families at nearly $28 million.
Pennsylvania also operates the PA 529 Investment Plan, under which account owners select investment options and returns depend on market performance. Treasury noted that the plan has received three consecutive Gold Ratings from Morningstar.
More information about the state’s 529 programs is available at pa529.com.
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