The PA 529 Investment Plan (IP) will be making some important changes on April 23, 2021. An overview of these changes is available here. We are working to update the website and PA 529 IP enrollment material to reflect these changes, and additional details are available in a supplement to the PA 529 IP Disclosure Statement.
Effective April 23, 2021, the PA 529 IP will transition its three age-based investment options to one unified Target Enrollment Date Investment Option.
While these changes were carefully constructed to mirror current asset allocations, it is important to note:
- If you are currently invested or plan to invest in an Age-Based Option, these options will not be available after April 23, 2021. Account Owners saving in an Age-Based Option will see their accounts transitioned (or mapped) to a Target Enrollment Date Portfolio as described in Charts 1 – 3 in this brochure. These mappings were carefully constructed to provide a mix of stocks, bonds, and short-term reserves similar to the asset allocations in the current Age-Based Portfolio(s). As a consequence of this, your new Target Enrollment Date Portfolio may differ from your child’s expected enrollment date. Additional details are available here.
- If you are currently invested or plan to invest in multiple age-based options, your account will transition to multiple Target Enrollment Date Portfolios.
- The new Target Enrollment Date Portfolios have a different allocation of stocks, bonds, and short-term reserves than what you may find online prior to April 23, 2021.
- Current and prospective account owners may invest in up to five (5) total portfolios at once, including Target Enrollment Date Portfolios and any of the 14 individual portfolios offered.
- If you would prefer not to be invested in the Target Enrollment Date Portfolio, you may exchange your investments no later than April 22, 2021 at 4:00pm (EST) to avoid this automatic change, provided you have not already made two portfolio exchanges already in this calendar year.
Current and prospective Account Owners should consider their investment strategy and overall risk tolerance when reviewing the changes and may consult a qualified financial professional for additional guidance.
For additional information on this transition, please contact us at 800-440-4000 between 8am and 5pm ET.