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2023 Virginia529 Vision Report

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26 YEARS MILLIONS OF FAMILIES Virginia529 has long been committed to helping make education more affordable and accessible for Virginia families Our experience in working with the public doing outreach and understanding how to help individuals and families plan and save for the future however has evolved In recent years Virginia529 has grown beyond education savings to encompass a more holistic savings portfolio that now includes disability savings and in 2023 we ll launch RetirePath Virginia a new private retirement savings option for Virginians I m excited to be part of this next stage for our organization the Commonwealth and Virginians We are continuing to close gaps in financial wellness and prepare families for their future needs in new and impactful ways Through the three pillars of our plan education disability and retirement savings families learn and experience the difference that comes from having access to easy affordable and flexible programs that enable them to save what they can when they can Virginia529 is proud to help expand prosperity and transform the Commonwealth s economic landscape One family and one dream at a time Mary G Morris CEO

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TAKING A CLOSER LOOK AT s IMPACT 2022 marked a big year for Virginia529 as the organization continued to close the gap in education savings With more than 85 billion in assets under management Virginia529 continues to occupy the largest share of college savers across the 529 industry It also marked an integral building year for RetirePath Virginia Virginia529 s retirement savings option that will launch in 2023 Virginia529 has a well established history of helping families achieve their education goals Contributions to the disability savings industry commitment to financial education and support of college access initiatives continue to leave a lasting Invest529 annual growth in accounts in assets under management 26 years of saving 2 9M 1 encouraging Virginia families to save As of June 30 2022 15K 5K distributed to Virginia schools annually Americans with disabilities saving with ABLEnow and ABLEAmerica years of tuition saved for with Tuition Track Portfolio 12 9M 130 119M awarded in SOAR Virginia scholarships Tuition Monster receiving his bachelor s degree in economics finance from Virginia Tech the other a senior majoring in dental hygiene at Old Dominion University When they were toddlers we opened Invest529 and Prepaid529 accounts for them Sometimes as parents when your children are really little you may feel you can t afford another monthly bill or lump sum payment But saving with Virginia529 worked for us Our children don t have the massive loans hanging over their heads that their friends do and the short term pain was worth the long term gain Clyde R Virginia529 Customer families saving with Virginia529 s programs 350M impact on the lives of Virginians 12 85 2B Our children are adults now one dedicated employees helping families achieve their savings goals Invest529 funds used for K 12 education

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UNLOCKING YOUNG VIRGINIANS FUTURES Virginia has its sights set on increasing the number of Virginians who earn a post high school degree or certification Virginia529 shares in that commitment by supporting programs that address students needs and support their futures For more than a decade Virginia529 has supported students facing financial obstacles in their pursuit of higher education through SOAR Virginia students served through SOAR Virginia In 2021 the Virginia529 Board approved a new initiative to advance the agency s mission of making higher education more accessible and affordable for all Virginians Virginia529 is providing support through a three year pilot project to programs across the state in the areas of mentorship and coaching scholarships and grants and workforce development OUR PARTNERS More Virginia students will unlock career opportunities that are only possible with education beyond high school We are grateful for this funding from Virginia529 and are eager to build relationships with more students to see them attain post secondary success Joy Pugh Virginia College Advising Corps OUR IMPACT 80 SOAR Virginia prepares eligible high school students across Virginia for education beyond high school through a combination of individual advising and up to 2 000 in an Invest529 scholarship account 9 3K Expanding education access through strategic partnerships new coaches statewide 38K 12 9M SOAR scholarships awarded This program helped connect me with a wonderful mentor and advisor I am a first generation college student so I had no one to turn to for help who would understand how to successfully enroll in college She was always very supportive even when I had my son at 18 and I started to fear that college wouldn t be possible for me while having a young child She encouraged me and helped me enroll and take my first steps into becoming a college student I will forever be grateful for the opportunities this program provided me Elizabeth Cheyenne G SOAR Virginia Participant students served 13 5M committed to the pilot project

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A POWERFUL NETWORK OF ADVOCATES EXPERTS Dante D Jackson Board Vice Chair Vice President Atlantic Union Private Bank Dr Elliott Dubin Retired Policy Analyst and Researcher David Dor VCCS Chancellor Over Virginia529 s more than two decade history the organization has benefited from strong board members with different perspectives and points of view but united in a common goal maintaining and expanding Virginia529 so that more families have access to the transformative power of education and financial well being Virginia529 is governed by an 11 member board consisting of experts in finance investment Catherine Beck Disability Advocate and Public Servant Peter A Blake SCHEV Executive Director David L Richardson Virginia State Treasurer Beyond the Board citizen members with significant expertise help make up Investment Advisory Audit and Actuarial Program Advisory and Access Advisory committees Reggie Samuel Managing Partner The Leumas Group As of April 1 2023 Lauren Kent Stack Board Chair Independent Trustee and Entrepreneur Randy McCabe Virginia State Comptroller Walter Stosch Retired Virginia State Senator management education disability advocacy and retirement planning Four members serve automatically through their positions as state officials Seven non legislative citizen members are appointed by the Governor or General Assembly I ve always been a firm believer in the power of trust and communication It s the foundation on which I built my career in the finance industry and it s what drew me to Virginia529 s board Being a part of this board means thinking about how hundreds of thousands of Virginia families can finance their loved ones education and carefully stewarding their hopes dreams and savings I m proud of the difference we re making in so many lives Lisa N Jennings Retired Credit Union Executive Virginia529 has been around for nearly 30 years and even though the uses for 529 plans have expanded and the program has evolved to meet more needs of Virginians the mission remains sound and consistent broadening access to financial wellness while protecting families The people in our state work hard and they dream big It s a great privilege to be part of an organization that exists to help them save in a smart and safe way and that helps them grow and advance their career goals

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SAVING TODAY FOR A BRIGHTER TOMORROW WITH Many families struggle with the concept and reality of saving for college Nationally student loan debt sits at 1 6 trillion greater than all credit card debt combined and second only to mortgage debt In Virginia 55 percent of college graduates have student loan debt averaging 29 616 according to The Institute for College Access and Success Who is saving with Invest529 440K Active Invest529 accounts Virginia529 has helped hundreds of thousands of families plan and save for future college expenses through Invest529 over the past 20 years The number of families saving through Invest529 continues to grow as more partnerships are cultivated and additional opportunities to educate families on saving are added What are they saving for Higher education K 12 tuition student loan repayment registered apprenticeship programs Why are they saving with Invest529 Low fees outstanding flexibility diverse investment options Plus eligible Virginia taxpayers can deduct up to 4 000 per Virginia529 account per year for Virginia state income taxes We put two kids through college and neither of our kids have school tuition debt nor do we Prudently saving every month in our Virginia529 account was the key to our success We started saving for them early enrolled in automatic contributions and by the time the kids were ready to go to college we had enough funds in their accounts for four years of tuition When our granddaughter was born we decided we wanted to give her the chance to have a college education free from the stress of student loans In 2018 we started making monthly deposits which is easy to do with Virginia529 We think it s a great life long gift that will enable her to pursue her dreams through a college education Class of 2039 sounds great Thomas S Invest529 Customer Feroz A Invest529 Customer The Tuition Track Portfolio The Tuition Track Portfolio is an exclusive Invest529 portfolio option for Virginia residents designed to track the weighted average tuition growth at Virginia public four year universities Average Tuition and protect families savings by avoiding market risk Families can choose how many Units or fractions of Units to purchase year round and the Units will have the same value no matter where a student goes to school For every 100 Units purchased families will receive the value equal to one year of Average Tuition when their student attends college Officially launched in 2021 the Tuition Track Portfolio has resonated with families looking for a flexible investment option that allows them to take the guesswork out of college savings More than 500 000 Units have been purchased enough for more than 5 000 years worth of college tuition for students across the state

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ACHIEVING A BETTER LIFE WITH More than 13 000 Americans with disabilities are saving with ABLEnow Representing all 50 states ABLEnow customers have collectively contributed almost 170 million to their accounts since the program opened in 2016 The Achieving a Better Life Experience ABLE Act authorized states to establish tax advantaged savings programs so individuals with disabilities can save and invest without jeopardizing eligibility for certain public benefits ABLEnow is one of the country s leading ABLE programs In partnership with account custodian PNC Bank ABLEnow offers industry leading advantages Taylor s ABLEnow account allows her to save for the future It provides peace of mind that she will have the financial support she needs to be able to pursue higher education and cover her basic needs without putting any of her benefits in jeopardy Jeanette C Mother of ABLEnow Account Owner 33 average customer age by the numbers 37 of customers live in Virginia 6 years program has been open A cross disability solution 0000 GOOD THRU ABLEnow Card available at no additional cost Online account management tools resources Top rated ABLEnow Mobile App Save for today and invest for tomorrow Living with a disability can come with extra costs ABLEnow customers use their account to save and pay for accessible transportation medical services and equipment assistive technology education and job training and many more qualified disability expenses to improve health independence and quality of life Anyone can contribute to an ABLEnow account including family friends employers and of course the account owner In a 2022 survey ABLEnow customers were asked to categorize the account owner s disability They were invited to select all that applied 64 Intellectual or Developmental 26 Physical 23 Mental 10 Sensory 7 Other Enroll with expanded options If an eligible individual cannot open their ABLEnow account or would prefer assistance an Authorized Representative can open and manage the account for them Now certain support organizations and professionals can open and manage ABLEnow accounts for eligible clients

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A NEW WAY FOR VIRGINIANS TO SAVE FOR RETIREMENT WITH How does it work In 2021 state law directed Virginia529 to establish a state facilitated private retirement savings program by July 1 2023 RetirePath will be professionally administered in partnership with private sector financial firms Virginia legislation instituted the automatic enrollment structure to encourage saving and help close the state s retirement savings gap Today almost half of Virginia s private sector workforce lacks access to a retirement savings plan at work RetirePath Virginia will help to close this gap When RetirePath opens eligible employers can simply register to facilitate RetirePath or notify the program that the business already offers a workplace retirement plan RetirePath is scheduled to launch by July 1 2023 for eligible Virginia employers It s a simple way for businesses to help their employees Employee participation will be voluntary and flexible save for the future with no employer fees no employer fiduciary responsibility and minimal administrative requirements for the employer RetirePath will address existing gaps and inequities by expanding access to retirement savings and providing more Virginians with a path to economic security 50 of Virginia workers don t have a retirement plan1 15x more likely to save if an option at work is available2 1 2 Virginia529 Report on State Facilitated Private Retirement Plan Programs 2020 AARP Access to Workplace Retirement Plans by Race and Ethnicity Fact Sheet based on EBRI research 2017 Employer eligibility Employee eligibility For profit and non profit businesses will be required to register and facilitate RetirePath if all of the following criteria apply Employees of participating eligible employers can enroll in RetirePath if they meet the following criteria 25 eligible employees 18 years old operating for 2 years working 30 hours week not currently offering a workplace retirement savings option receiving wages Individual enrollment Virginians who are self employed independent contractors or work for an employer who is not eligible to offer RetirePath can choose to enroll and save independently RetirePath Virginia will be a simple hassle free solution for employers and an easy savings option for employees across the Commonwealth Peter Thompson Virginia529 RetirePath Program Director

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LONGTIME PARTNERSHIPS NATIONAL REACH Virginia529 partners with Capital Group home of the American Funds one of the oldest and largest mutual fund companies in the country For over 20 years over 2 million families nationwide have been able to work with a financial professional to save tax free for qualified education expenses through CollegeAmerica a 529 savings plan More recently ABLEAmerica was developed in partnership with Capital Group as the only ABLE program in the country available to eligible families through a financial professional A WELL RUN FINANCIAL OPERATION Virginia529 delivers an Annual Financial Report the Report pursuant to Virginia Code 23 38 84 and the Report is communicated to the Governor key members of the General Assembly and the Joint Legislative and Audit Review Commission JLARC accepted accounting principles and are audited by a private independent accounting firm Replace with There was steady account growth and program contributions in FY2022 Financial statements are presented in accordance with generally Virginia529 com about reports Number of Accounts Fiscal 2022 Assets Under Management Invest529 does not include TTP This strategic partnership with Capital Group American Funds has allowed Virginia529 to become the largest 529 plan in the country with over 85 billion in assets under management CollegeAmerica Prepaid529 does not include TTP TTP ABLEnow ABLEAmerica As of June 30 2022 Annual audited financial statements for Virginia529 are available at Fiscal 2022 440 197 2 557 738 46 338 5 762 12 705 1 987 Invest529 does not include TTP CollegeAmerica Prepaid529 does not include TTP in millions 6 980 75 268 2 874 TTP 63 ABLEnow 89 ABLEAmerica 24

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ABOUT Helping families plan for their future one dream at a time As an organization of 130 employees Virginia529 strives to help make the financial lives of Virginians and all Americans better through its commitment to affordable and accessible savings programs and financial education Virginia529 s commitment to diversity and inclusion At Virginia529 diverse perspectives are embraced and people are treated with respect To further support its mission of financial inclusion and educational attainment Virginia529 partners with many organizations at the state and national level including A pledge to equity The concept of equity is a bedrock principle for Virginia529 The enabling legislation of the organization provided the basic mandate to enhance the accessibility and affordability of education for all citizens of the Commonwealth That original mission was expanded with passage of federal and state Achieving a Better Life Experience ABLE legislation and passage of the legislation directing the launch of RetirePath Virginia As a parent I m proud to work for an organization that looks at our communities our state and our country and asks how can I help We re supporting families as they build something special their futures and the work Virginia529 does will have an impact for generations to come Allison R Virginia529 Customer Service Manager One of my favorite aspects of working for Virginia529 is how we continue to evolve and improve to offer families their best chance at meeting their savings goals Hundreds of thousands of Virginians trust us to be responsible stewards of their investments their children s futures and we take a hands on approach to living up to those expectations Oscar G Virginia529 Investment Analyst

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Call 1 888 567 0540 or visit Virginia529 com to obtain all program materials Read them carefully before investing An investor should consider the investment objectives risks charges and expenses of the programs before investing For non Virginia residents before investing consider whether you or the beneficiary s home state offers any state tax or other state benefits such as financial aid scholarship funds and protections from creditors that are only available for investments in that state s qualified tuition program 2023 Virginia College Savings Plan All Rights Reserved VISION REPORT 2023