12-06-07 HAWAII IMPROVES COLLEGE SAVINGS PROGRAM
Lt. Governor James R. “Duke” Aiona Jr. today announced the State of Hawai‘i
has selected Upromise Investments, Inc. to manage its revamped College
Savings Program. The Lt. Governor was joined by Department of Education
Deputy Superintendent Clayton Fujie and Upromise Investments, Inc. Chief
Administrative Officer Jeff Howkins at a news conference to discuss an
innovative partnership between the state Departments of Budget and Finance
and Education, Upromise Investments, Inc. and the Hawai‘i Association of
Independent Schools to promote the revamped college savings program.
The Program, formerly called “TuitionEDGE”, will now be called “HI529 –
Hawai‘i’s College Savings Program” and will provide a college savings plan
that combines excellent service, low fees and costs, and new investment
options.
“Hawai‘i’s college savings program can help reduce the financial burden placed on families looking to provide their children with a college education,” Lt. Governor Aiona said. “With early planning and the right investments, more families can prepare for the costs of college. An added benefit of this program is that investment earnings grow tax-deferred and are exempt from federal and state income taxation while invested in the program.”
Established under Section 529 of the Internal Revenue Code, the college savings program allows withdrawals to be exempt from federal and Hawai‘i state income taxation, provided that the withdrawals are used for qualified tuition expenses.*
“This is a great program and an excellent opportunity for our students and their families to start saving for college,” said Department of Education Superintendent Patricia Hamamoto.
“The Hawai‘i Association of Independent Schools believes strongly that Hawai‘i’s 529 College Savings Program is a valuable resource for parents and grandparents who are dedicated to making prudent investments today for their children and grandchildren to attend college tomorrow,” said Robert Witt, executive director of the Hawai‘i Association of Independent Schools.
Upromise Investments, Inc. and The Vanguard Group, Inc., the college savings plan’s program manager and investment manager, respectively, will implement a number of improvements to the program that will greatly enhance the college savings process for participants:
Investments from Vanguard. HI529 participants can choose from a variety of investments tailored to their needs, including one age-based option, five fixed-asset allocation options, and a money market portfolio.
Low costs. All investment options will have a 0.75% management fee and a $20 annual account fee. There are no sales charges, and the minimum initial investment is just $15.
And the Upromise® rewards service gives families an excellent no-cost way to supplement their college savings with the money they earn on qualified purchases.**
“We are thrilled with the opportunity to help all families in Hawai‘i invest for college,” said Jeff Howkins, chief administrative officer of Upromise Investments, Inc. “We appreciate the vision and dedication of Hawai‘i state officials that have led to an improved program. Together with our partners at The Vanguard Group, Inc., we are striving to make saving for college simpler, more impactful, and more affordable.”
For more information about HI529—Hawai‘i’s College Savings Program, call toll-free 1-866-529-3343 or visit www.hi529.com.
###
* Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
** Specific terms and conditions apply for each company’s contributions. Participating companies, contribution levels, and terms and conditions are subject to change without notice.
For more information about HI529 — Hawai‘i’s College Savings Program, call 1-866-529-3343 or visit www.hi529.com to obtain a Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Disclosure Statement; read and consider it carefully before investing. Upromise Investments, Inc., Distributor and Underwriter.
If you are not a Hawai‘i taxpayer, consider before investing whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
The State of Hawai‘i’s College Savings Program Trust Fund (the “Trust”) is a trust created by the State of Hawai‘i. When you invest in HI529 — Hawai‘i’s College Savings Program (the “Plan”), you are purchasing portfolio units issued by the Trust. Portfolio units are municipal securities. The Plan is administered by the Director of Finance of the Department of Budget and Finance on behalf of the State of Hawai‘i. Upromise Investments, Inc. and Upromise Investment Advisors, LLC, will serve as the new Program Manager and recordkeeping and administrative servicing agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc. will serve as the new Investment Manager for the Plan. The Plan’s portfolios, although they invest in mutual funds, are not mutual funds.
Investment returns are not guaranteed, and you could lose money by investing in the Program. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences.
Not FDIC insured. No bank, State, or federal guarantees. May lose value.
###
For more information, contact:
Georgina Kawamura, Director
Department of Budget and Finance
Phone: (808) 586-1518
Travis Taylor, Communications Director
Office of the Lieutenant Governor
Phone: (808) 586-0283
“Hawai‘i’s college savings program can help reduce the financial burden placed on families looking to provide their children with a college education,” Lt. Governor Aiona said. “With early planning and the right investments, more families can prepare for the costs of college. An added benefit of this program is that investment earnings grow tax-deferred and are exempt from federal and state income taxation while invested in the program.”
Established under Section 529 of the Internal Revenue Code, the college savings program allows withdrawals to be exempt from federal and Hawai‘i state income taxation, provided that the withdrawals are used for qualified tuition expenses.*
“This is a great program and an excellent opportunity for our students and their families to start saving for college,” said Department of Education Superintendent Patricia Hamamoto.
“The Hawai‘i Association of Independent Schools believes strongly that Hawai‘i’s 529 College Savings Program is a valuable resource for parents and grandparents who are dedicated to making prudent investments today for their children and grandchildren to attend college tomorrow,” said Robert Witt, executive director of the Hawai‘i Association of Independent Schools.
Upromise Investments, Inc. and The Vanguard Group, Inc., the college savings plan’s program manager and investment manager, respectively, will implement a number of improvements to the program that will greatly enhance the college savings process for participants:
Investments from Vanguard. HI529 participants can choose from a variety of investments tailored to their needs, including one age-based option, five fixed-asset allocation options, and a money market portfolio.
Low costs. All investment options will have a 0.75% management fee and a $20 annual account fee. There are no sales charges, and the minimum initial investment is just $15.
And the Upromise® rewards service gives families an excellent no-cost way to supplement their college savings with the money they earn on qualified purchases.**
“We are thrilled with the opportunity to help all families in Hawai‘i invest for college,” said Jeff Howkins, chief administrative officer of Upromise Investments, Inc. “We appreciate the vision and dedication of Hawai‘i state officials that have led to an improved program. Together with our partners at The Vanguard Group, Inc., we are striving to make saving for college simpler, more impactful, and more affordable.”
For more information about HI529—Hawai‘i’s College Savings Program, call toll-free 1-866-529-3343 or visit www.hi529.com.
###
* Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
** Specific terms and conditions apply for each company’s contributions. Participating companies, contribution levels, and terms and conditions are subject to change without notice.
For more information about HI529 — Hawai‘i’s College Savings Program, call 1-866-529-3343 or visit www.hi529.com to obtain a Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Disclosure Statement; read and consider it carefully before investing. Upromise Investments, Inc., Distributor and Underwriter.
If you are not a Hawai‘i taxpayer, consider before investing whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
The State of Hawai‘i’s College Savings Program Trust Fund (the “Trust”) is a trust created by the State of Hawai‘i. When you invest in HI529 — Hawai‘i’s College Savings Program (the “Plan”), you are purchasing portfolio units issued by the Trust. Portfolio units are municipal securities. The Plan is administered by the Director of Finance of the Department of Budget and Finance on behalf of the State of Hawai‘i. Upromise Investments, Inc. and Upromise Investment Advisors, LLC, will serve as the new Program Manager and recordkeeping and administrative servicing agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc. will serve as the new Investment Manager for the Plan. The Plan’s portfolios, although they invest in mutual funds, are not mutual funds.
Investment returns are not guaranteed, and you could lose money by investing in the Program. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences.
Not FDIC insured. No bank, State, or federal guarantees. May lose value.
###
For more information, contact:
Georgina Kawamura, Director
Department of Budget and Finance
Phone: (808) 586-1518
Travis Taylor, Communications Director
Office of the Lieutenant Governor
Phone: (808) 586-0283
