Treasurer Stacy Garrity Announces S&P’s Highest Credit Rating Pennsylvania Treasurer Stacy Garrity announced today that Standard and Poor’s Global Ratings (S&P) has reaffirmed the highest credit rating possible, AAAm, for Treasury’s INVEST program pools. INVEST, managed by the Pennsylvania Treasury Department, is an investment tool specifically designed for local government agencies and nonprofit organizations. “Earning S&P’s highest rating for our INVEST pools is a tremendous honor, and it reflects the hard work we’re doing to help local governments and nonprofits across Pennsylvania maximize their investment capabilities,” Treasurer Garrity said. “Many of these entities have extremely tight budgets, so helping them invest and grow their funds is important. Treasury is glad to provide this program to help organizations fund critical projects that improve the lives of Pennsylvanians.” INVEST participants include local government agencies and nonprofits including municipalities, counties, school districts, fire companies, libraries and many others. There are two pools in INVEST, the Daily Pool for local governments and the Community Pool for nonprofit organizations. Ratings affirmations were for both pools. Both pools provide daily liquidity, with no minimum balance requirements, no minimum deposit amounts and no limit on the number of transactions an organization can make. Treasury may also offer periodic custom investment opportunities for longer-term financial needs of participants. AAAm is the highest rating established by S&P. Criteria for this rating includes a fund that, according to S&P, “demonstrates extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit risk.” Treasury’s investment staff has managed INVEST for over 30 years. In Fiscal Year 2023-24, participants shared more than $75 million in earnings. More than 450 INVEST participants currently have over $1.6 billion in assets. To learn more about becoming a participant with INVEST, visit patreasury.gov/invest or email investoperations@patreasury.gov.
Pennsylvania Treasury Department Praised for PA 529 Pennsylvania Treasury Department has been praised for PA 529 Investment Plan. Morningstar, a financial services company that rates 529 plans across the country, recently reinforced the reasons it awarded the Pennsylvania Treasury Department’s PA 529 College and Career Savings Program Investment Plan (IP) its Gold Rating in November – making it one of only two plans in the nation to receive Morningstar’s highest rating. In a recent article (“Morningstar’s Top-Ranked 529 Plans”), Morningstar praised Treasury’s “aggressive negotiations for lower fees and additional fee breakpoints” which “led to a more positive investor experience.” It also highlighted the department’s “effective and steadfast advocacy on behalf of its investors [which] puts the plan a notch above peers.” “My team and I are proud of the fact that we earned Morningstar’s Gold Rating because it means that we’re doing a great job for the hardworking Pennsylvania families who use the PA 529 IP to save for education,” Treasurer Stacy Garrity said. “Our focus is always on the people who are saving every dollar they can to give their children and grandchildren the education they want and deserve. We will continue working day in and day out to give Pennsylvania families even more reasons to save for their child’s bright future with PA 529.” The PA 529 IP allows families to choose from a variety of investment portfolios, including target enrollment date options, which automatically adjust asset allocations to become more conservative as a child reaches the anticipated date of enrollment in post-high school education. PA 529 IP earnings are dependent upon financial market performance. Since taking office in 2021, Treasurer Garrity has overseen several changes to PA 529 plans, making them more accessible and affordable for Pennsylvania families, including eliminating the minimum deposit to open an account and reducing the minimum contribution to one dollar, on top of multiple fee reductions that have saved more than $11.5 million for families across the whole PA 529 program, which also includes the PA 529 Guaranteed Savings Plan (GSP). There are nearly 301,000 combined PA 529 IP and GSP accounts with more than $7.7 billion in assets. The PA 529 College and Career Savings Program helps 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 offer significant state and federal tax advantages and saving with PA 529 does not impact Pennsylvania state financial aid eligibility. To learn more about PA 529 accounts visit pa529.com, call 800-440-4000 or email pa529@patreasury.gov.
Treasurer Stacy Garrity Announces PA ABLE Website Treasurer Stacy Garrity today announced the launch of the redesigned PA ABLE Savings Program website, paable.gov. The new website makes it easier for individuals to learn about the many benefits of PA ABLE, open a new account, and access their existing PA ABLE account. “With the launch of our new PA ABLE website, we’re making it easier than ever for people to learn about, and access, this amazing program,” Garrity said. “Making sure every Pennsylvanian with a disability knows about PA ABLE is the first step to helping them live more independently. Revamping our resources to make them as accessible as possible is just one way we’re helping more Pennsylvanians save for a secure future.” The new paable.gov was built from the ground up. It streamlines navigation and content, integrates frequently asked questions within relevant pages, and includes changes that make it easier and more convenient for account owners and prospective account owners to find the information they need about PA ABLE. It also gives users the ability to easily translate every page on the new site to Spanish. This feature is powered by Google Translate. More than 9,000 PA ABLE accounts are open with over $120 million in assets. PA ABLE gives individuals with qualifying disabilities a tax-free way to save and invest without impacting important benefits. All federal benefits are protected, including Medical Assistance (Medicaid) and, with some limitations, Supplemental Security Income (SSI) benefits, as are many Pennsylvania state benefits. As savings earn interest or returns over time, neither federal nor Pennsylvania income tax is owed – and, when a withdrawal including that growth is taken, no income tax is owed as long as the withdrawal is used to pay for qualified disability expenses. PA ABLE offers seven different investment options, including an interest-bearing checking account. Account owners, along with family members and friends, can contribute up to $18,000 per year to a PA ABLE account. Contributions can be deducted on Pennsylvania state income taxes. Currently, to be eligible to save with PA ABLE, a person’s disability must onset prior to their 26th birthday – but the age limit will increase to 46 starting on Jan. 1, 2026. This is thanks to the ABLE Age Adjustment Act, which will expand ABLE eligibility to millions more Americans including one million Veterans. PA ABLE is one of the largest ABLE programs in the country and the largest program in the 19-member National ABLE Alliance, accounting for more than 25% of total Alliance assets. Since taking office, Treasurer Garrity has reduced fees three times for PA ABLE account owners. She is the inaugural chair of the National ABLE Savings Plans Network, a part of the National Association of State Treasurers dedicated to growing awareness, engagement and growth of ABLE Plans nationally. To learn more, visit paable.gov or call (855) 529-2253.
Treasurer Stacy Garrity Applauds Senate for State Tax Appeal Reform Pennsylvania Treasurer Stacy Garrity applauded the Senate for its bipartisan approval of Senate Bill 1051 yesterday, pro-taxpayer legislation sponsored by Sen. Scott Hutchinson (R-21) to streamline and improve the process of resolving tax disputes with the Pennsylvania Department of Revenue (DOR). SB 1051 will allow the Board of Finance and Revenue (BF&R) to accept late-filed applications in certain circumstances and to create a new independent, mediated settlement process for taxpayers as an alternative to the formal and lengthy court appeals process. “The current tax appeal process tends to be bureaucratic, cumbersome and inflexible,” Treasurer Garrity said. “It’s a huge burden on too many individuals and businesses with legitimate tax appeals – we need to improve this process. Sen. Hutchinson’s legislation will create an even playing field for Pennsylvania taxpayers, and it will help tax issues get resolved more quickly. I applaud the Senate for approving this commonsense, taxpayer-friendly legislation.” “My colleagues and I have found that, sometimes, the Department of Revenue can get a little overzealous when interpreting applicable tax law,” Sen. Hutchinson said. “Senate Bill 1051 gives taxpayers a little more time and some options when responding to assessments by the Department, while also benefiting our Commonwealth by resolving tax issues sooner and allowing tax liabilities to be collected more quickly. Plain and simple, SB 1051 is a taxpayer protection proposal that makes a complicated system clearer, simpler and taxpayer-friendly – it’s a win-win for all parties.” SB 1051 is supported by numerous organizations, including the Pennsylvania Chamber of Business and Industry, the NFIB, the Pennsylvania Institute of Certified Public Accountants (PICPA), and the Pennsylvania Society of Enrolled Agents. A companion bill, House Bill 1994, was introduced by Rep. Tim Briggs (D-29). Currently, taxpayers who disagree with a final decision made by DOR have a 60-day deadline to appeal the decision to BF&R. That often leads to cases being dismissed on a technicality rather than being decided on their merits. SB 1051 will allow BF&R to accept late-filed applications if good cause is shown by the taxpayer and neither party would be prejudiced. The bill also empowers BF&R to create an independent settlement process, which will allow more tax disputes to be resolved without a final Board decision – thus reducing litigation costs for taxpayers. Under current law, BF&R has no authority to direct a mediated settlement process. Treasury estimates that up to 500 cases annually could be resolved under this process. BF&R receives approximately 4,200 appeals annually. The Board must resolve each appeal within six months of its filing, absent an extension request; otherwise, the underlying DOR decision is upheld. Currently, only about 13 percent of eligible appeals are resolved through settlement prior to an appeal before the Commonwealth Court. BF&R is an independent administrative tax tribunal, administered by the State Treasurer, responsible for the second and final level of administrative appeal (with minor exceptions) before appealing to court. The Board consists of three members – two are appointed by the Governor and confirmed by the Pennsylvania Senate; the third is the State Treasurer or her designee and serves as Chair.
Treasurer Stacy Garrity Celebrates 529 Day with Awards for Families Treasurer Stacy Garrity celebrated 529 Day – May 29, or 5/29 – by encouraging families across Pennsylvania to save with the PA 529 College and Career Savings Program for a chance to win awards, including three top awards of $5,529 – enough to pay for a year’s tuition at a Pennsylvania community college. May 29, 2024, has also been designated as College and Career Savings Day in Pennsylvania by the General Assembly, with resolutions sponsored by Senator Scott Martin (R-13) and Representative John Schlegel (R-101). “I’m excited to celebrate 529 Day and very pleased that the General Assembly is supporting our efforts by proclaiming this as College and Career Savings Day,” Treasurer Garrity said. “Saving for education is an important step families can take to help make their child’s dreams come true, no matter what career path they take. Treasury is offering some fantastic promotional awards to encourage more families to take advantage of our PA 529 Guaranteed Savings Plan, which is a great savings tool. Saving now, means less to borrow when a child embarks on their technical career training, apprenticeship or college degree.” “We all share a common interest in supporting strong postsecondary educational opportunities and career preparation programs to help young people chart a course toward a brighter future here in Pennsylvania,” said Senator Martin. “I am proud to partner with Treasurer Garrity to make more Pennsylvanians aware of the benefits of PA 529 accounts and the key role they play in helping students achieve their dreams.” “The PA 529 College and Career Savings Program has helped many Pennsylvanian families save money for their child’s postsecondary education for more than three decades,” said Rep. Schlegel. “I encourage all families to consider this savings option.” Treasury’s 529 Day promotion has been running since May 1, and families have until May 31 to save to be eligible for awards with the PA 529 GSP. The PA 529 GSP allows families to save at today’s tuition rates to meet tomorrow’s tuition costs. Families can choose the tuition level they wish to save at – from community colleges up to Ivy League universities. Families who open a new PA 529 GSP and contribute at least $10 until May 31, will be eligible to win one of two statewide awards of $5,529, or one of six regional awards of $2,529. Last year, more than 1,000 families started saving during our 529 Day promotion. New for this year, families who had a PA 529 GSP account prior to May are eligible to win one statewide award of $5,529 if they make an additional contribution of at least $10 to their child’s account before the end of the month. The PA 529 program has been helping families save and pay for education for more than 30 years. Saving with PA 529 accounts comes with significant state and federal tax advantages. PA 529 accounts can be used for a wide variety of qualifying technical, collegiate, and apprenticeship expenses like tuition, fees, books, equipment, room and board, and more. Saving with PA 529 does not impact a student’s eligibility for Pennsylvania state financial aid. Families with young children, born January 1, 2019, or later, already have a $100 Keystone Scholars account to jumpstart their education savings. This automatic deposit is available to every baby born in Pennsylvania, and the program uses no taxpayer dollars. Families are encouraged to claim their Keystone Scholars accounts online at pa529.com/keystone and open their own companion PA 529 account to continue saving for their child’s future.
Treasurer Stacy Garrity Encourages Pennsylvanians to Apply for Property Tax/Rent Rebate Program Treasurer Stacy Garrity today encouraged eligible Pennsylvanians to apply for the Property Tax/Rent Rebate Program for this year’s rebate as soon as possible, noting that the Pennsylvania Treasury Department will begin sending rebates to approved applicants on July 1. “Many more Pennsylvanians are eligible for the Property Tax/Rent Rebate Program this year because the General Assembly and the Governor made the smart decision to expand the program,” Treasurer Garrity said. “I encourage everyone who’s eligible to apply as soon as possible. Treasury will start making payments on July 1, which is the earliest we’re able to under the law – and we’ll continue making payments on a rolling basis after that. This essential program makes a huge difference for so many, including older Pennsylvanians and those living with disabilities, and I’m committed to getting these payments out as quickly as possible once applicants are approved by the Department of Revenue.” The new law increased household income limits for rebates to $45,000 for homeowners and renters (up from $35,000 and $15,000, respectively). Claimants may exclude half of their Social Security income. The maximum standard rebate is now $1,000 (up from $650). Treasurer Garrity especially encouraged first-time applicants to apply as soon as possible because the Department of Revenue has indicated they will need more time to verify new applicant information as part of their efforts to combat program fraud. The Property Tax/Rent Rebate Program benefits Pennsylvanians age 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older. Some homeowners may qualify for supplemental rebates. The deadline to apply for this year’s rebate is June 30, 2024. As part of last year’s program expansion, beginning in 2025, the income limits will be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI). That calculation will be done by the Secretary of Revenue. Since the program’s inception in 1971, more than $8 billion in rebates have been paid.
Treasurer Garrity: Unclaimed Property In celebration of National Roller Coaster Day, Treasurer Stacy Garrity announced today that nearly $43 million is owed to more than 208,000 Pennsylvanians who are ready to take the ride of their lives – those with a name or business name that includes the words coaster, ride, loop, up, down, thrill, summer, park, Edwin or Prescott. “The last few years have been a wild ride, and we could all use a little extra cash in our wallets,” Garrity said. “Please keep your arms and legs inside the ride at all times, and get ready to search for unclaimed property – you don’t even have to stand in line! The average roller coast ride is about two minutes long, but it doesn’t even take that long to see if Treasury has unclaimed property waiting for you.” Unclaimed property includes things like dormant bank accounts, uncashed checks, forgotten stocks, insurance policies, tangible property like the contents of abandoned safe deposit boxes, and more. The state’s unclaimed property law requires assets to be turned over to Treasury after certain periods of time, generally three years. “When Edwin Prescott patented the first looping roller coaster in North America in 1898, he had no idea how many smiles his invention would bring to millions of people,” Garrity said. “Finding unclaimed property is another reason to smile, especially since the average claim is about $1,500. One in ten Pennsylvanians is owed unclaimed property, so there’s a good chance you might end up with money in your pocket!” Last year, Treasury returned more than $135 million to Pennsylvanians. Treasury is currently seeking the owners of more than $4 billion in unclaimed property. Tangible property received by Treasury may be auctioned after approximately three years, but any proceeds from a sale will be kept in perpetuity until an owner is found. Military decorations and memorabilia are never auctioned, and Treasury works diligently to find veterans and their families to reunite them with these priceless symbols of service. Search Treasury’s unclaimed property database to see if you or someone you know has property waiting to be claimed at patreasury.gov/unclaimed-property.
Treasurer Garrity Announces New Chief Investment Officer Treasurer Stacy Garrity today announced that Thomas J. Waters, former Vice President of Corporate Finance with Armstrong World Industries in Lancaster, is joining her senior staff as Treasury’s new Chief Investment Officer (CIO). “I’m extremely confident in Tom’s ability to lead our investment staff, and I’m pleased to welcome him to Treasury as our new CIO,” Garrity said. “Treasury’s CIO plays a crucial role in making sure that state dollars are invested soundly and prudently, and Tom’s experience and leadership will serve taxpayers well. He also has a proven track record of successful mentoring and team building. I look forward to working with him.” Most recently at Armstrong World Industries, Waters directed Armstrong’s treasury and investor relations functions. During his more than two decades with Armstrong, he held a variety of operational and corporate finance roles. Waters also served as the President of TJW Advisory and has held positions with American Airlines, Shearson Lehman Brothers, and E.F. Hutton. Waters, who will start at Treasury in September, earned his bachelor’s degrees in economics and history from Binghamton University and an MBA in finance from the University of California, Berkeley. “I’m thrilled to join the team at the Pennsylvania Treasury and work alongside Treasurer Garrity and her staff,” Waters said. “I will work every day to ensure the best possible investment outcomes for Pennsylvania taxpayers. Managing the state’s assets responsibly and with the highest fiduciary standards is my top priority.” The CIO serves as a chief advisor to the Treasurer and is responsible for the direct management of approximately $40 billion in state assets and provides insight and analysis for Commonwealth investment assets under custody totaling $150 billion, including the state’s three largest pension funds.
Treasurer Stacy Garrity Announces $100 Deposits, Waived Fees for PA 529 GSP Account Owners Treasurer Stacy Garrity today announced that qualifying PA 529 Guaranteed Savings Plan (GSP) account owners will receive a $100 account deposit. In addition, all PA 529 GSP account owners’ asset-based fees will be waived for the fiscal year, beginning July 1, 2022. The deposit and fee waivers are being funded by PA 529 GSP surplus earnings. “The PA 529 GSP is a great way to offset the effects of inflation,” Garrity said. “Any family looking to make postsecondary education more affordable should consider the benefits of the PA 529 GSP. Giving participants this deposit and a year of waived asset-based fees is a way to share the success of the plan with families who are dedicated to saving for their child’s education.” To be eligible for the $100 deposit, a PA 529 GSP account must have a minimum of $100 in contributions as of June 30, 2022. Account earnings do not count toward the qualifying $100. “Investing in the PA 529 GSP gives parents peace of mind,” Garrity said. “They know that as tuition rates climb, they’ve already locked in their child’s future education at today’s price.” There are nearly 110,000 PA 529 GSP accounts with $2.2 billion already saved for future postsecondary education expenses. Account earnings are based on college tuition inflation rates, and families can select the tuition credit rate they wish to save at, whether that’s a community college or an Ivy League university. Saving at today’s credit rate will cover the same credit in the future. PA 529 College and Career Savings Program accounts are designed to help Pennsylvania families steadily and strategically save for future educational expenses. Treasury offers two plans: the PA 529 GSP, which allows families to save at today’s tuition rates to meet tomorrow’s tuition costs, and the Morningstar Silver Rated PA 529 Investment Plan, which offers a variety of investment options. PA 529 plans have significant state and federal tax advantages and can be used for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses. To learn more, visit pa529.com or call 800-440-4000.
Treasurer Garrity Returns Bronze Star to WWII Veteran’s Family During a ceremony at VFW Post 92, Treasurer Stacy Garrity returned a Bronze Star to the family of the late Frank Musto, a U.S. Army veteran who served his country in World War II. “It’s an incredible honor to return this Bronze Star to the Musto family,” Garrity said. “Frank Musto enlisted when he was just 19 years old and served our country during World War II. He was wounded during battle in France. As a fellow veteran, and on behalf of the entire Commonwealth, I extend my deepest appreciation and gratitude for Frank’s service and his and his family’s sacrifices for our country.” “We’re all very proud of our father’s service in World War II, and it means the world to us that the Bronze Star is now back with his family,” said Ron Musto, one of Frank Musto’s sons. “Our entire family would like to thank Treasurer Garrity and her team at the Treasury Department for taking care of these military decorations and for making sure they were reunited with us.” In addition to the Bronze Star and related military decorations, an engraved bullet casing from Musto’s military funeral was returned to his family at the ceremony, including several of his children and grandchildren. Like most tangible unclaimed property, these military decorations – along with a black and white photo of Frank Musto and several other items – were received by Treasury as the contents of a safe deposit box. It was determined that the box owner was Frank’s late son Jody Musto, so Treasury staff researched by scouring newspaper articles and the internet to find prospective family members or heirs to the property. Treasury staff made cold calls and eventually connected with the family to start the return process. The Musto family had thought the contents of the box were lost for good after an unsuccessful attempt to obtain a list of its contents from the bank. For his military service, Frank Musto was also awarded a Purple Heart, WWII Victory Medal, Good Conduct Medal, American Campaign Medal, and European-African-Middle Eastern Campaign Medal. Those medals were already in the family’s possession. The Pennsylvania Treasury works diligently to return all unclaimed property with special attention given to military decorations and memorabilia. Since taking office, and including today’s returns, Treasurer Garrity has returned 262 military decorations including 3 Purple Hearts and 2 Bronze Stars. Treasury has returned a total of 560 military decorations and memorabilia. Treasury’s vault still holds hundreds of military decorations including Purple Hearts, Bronze Stars, Legion of Merit awards, campaign medals, military identification tags and more representing every branch of the military and nearly every major conflict. These items are never auctioned and are held in Treasury’s care in perpetuity or until a rightful owner is found. Treasury’s dedicated military decoration database can be searched by visiting patreasury.gov/unclaimed-property/medals.
