Pennsylvania State Treasurer Hafer Taps Mellon/Dreyfus to Provide New College Investment Plan

Apr 30, 2001, 01:00 ET from Pennsylvania Department of the Treasury

    HARRISBURG, Pa., April 30 /PRNewswire/ -- Pa. State Treasurer Barbara
 Hafer today announced she has chosen Mellon Financial Corporation and its
 Dreyfus family of mutual funds to create a new tax-deferred college investment
 program for Pennsylvania families.  Hafer said the new investment program will
 be offered in addition to the popular TAP Guaranteed College Savings Program
 and will become operational in several months.
     "We are extremely pleased to be able to partner with Mellon, headquartered
 in Pennsylvania and parent of one of America's leading mutual fund companies,
 to offer this exciting investment option to Pennsylvania families," Hafer
 said.  She announced the selection at today's meeting of the TAP Advisory
 Board.
     "Mellon has a long-standing commitment to Pennsylvania's economic future,
 so we're delighted to join the Commonwealth in helping parents make one of the
 most important investments they can -- in their children's higher education,"
 said Christopher M. "Kip" Condron, Mellon president and chief operating
 officer and Dreyfus chairman and chief executive officer.
     The new investment program will allow participants to choose among several
 mutual fund portfolios with different investment goals, guidelines and risks.
     "We know there is a tremendous demand for an investment-style program,"
 Hafer said.  "It's a powerful tool to help families meet the challenge of
 affording a college education for their children."
     Under the new investment program, Hafer explained, "the investment risk
 will be greater than under our guaranteed savings program, but the potential
 returns will be greater, too.  And the investment program will offer all the
 same Section 529 tax benefits that the guaranteed savings program offers."
     Section 529 of the US Internal Revenue Code addresses the tax treatment of
 qualified state-sponsored college savings plans.  Federal tax is deferred
 until the account is used, then growth in the account is taxed at the
 student's rate -- even though the parent (or other owner) retains full control
 of the account.  There are also significant federal estate tax benefits.
     In addition, investment accounts, like current TAP accounts, will be state
 and local tax-free, will not be subject to state inheritance tax, and will not
 reduce eligibility for state financial aid for Pennsylvania residents.
 Investment program account holders who are Pennsylvania residents also will be
 able to enroll in the SAGE Scholars program, which offers guaranteed
 scholarships at more than 120 private colleges nationally.
 The investment program will offer families multiple options, including:
 
     -- A "years to matriculation" option in which funds are concentrated in
         stocks while the child is young, then gradually moved into more
         conservative investments as the child approaches college age.
     -- At least one portfolio concentrated in stocks.
     -- At least one portfolio concentrated in bonds.
     -- At least one portfolio invested in a blend of stocks and bonds.
 
     Pennsylvania families will be able to enroll in the program four ways:  by
 calling a toll-free number; by visiting the program web site; by visiting a
 Mellon Bank branch, or by visiting any of the almost 5,000 licensed broker-
 dealers and financial advisors who sell Dreyfus mutual funds in the state.
     "Out-of-state residents also will be able to join the investment program,
 which will be marketed nationally through broker-dealers, financial planners
 and other intermediaries," said J. David Officer, Mellon executive vice
 president and Dreyfus vice chairman.  "We believe there will be several
 compelling reasons for any parent of young children in any state to consider
 Pennsylvania's new investment program."
     Hafer received legislative authorization to create the new program with
 the passage of the TAP Enhancement Act last year.  Mellon was selected from
 among five firms that submitted proposals.
     "We are pleased to be able to award this contract not only to a
 Pennsylvania company," Hafer said, "but to one that gives us such tremendous
 ability to reach Pennsylvania residents."  Mellon and Dreyfus together have
 more than two million active customers in the state, she noted.
     "Mellon/Dreyfus put together an outstanding proposal," Hafer said.  "They
 share my goal, which is to offer the best Section 529 investment plan in the
 nation."
 
     Mellon Financial Corporation is a global financial services company.
 Headquartered in Pittsburgh, Mellon is one of the world's leading providers of
 asset management, trust, custody and benefits consulting services and offers a
 comprehensive array of banking services for individuals and corporations.
 Mellon has $2.8 trillion in assets under management, administration or
 custody, including $520 billion under management.  Its asset management
 companies include The Dreyfus Corporation and Newton Investment Management
 Limited (U.K.).
     The Dreyfus Corporation, established in 1951 and headquartered in New York
 City, is one of the nation's leading fund companies, currently managing
 approximately $150 billion in more than 195 mutual fund portfolios.  Dreyfus
 Service Corporation is the distributor of Dreyfus Funds.
 
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SOURCE Pennsylvania Department of the Treasury
    HARRISBURG, Pa., April 30 /PRNewswire/ -- Pa. State Treasurer Barbara
 Hafer today announced she has chosen Mellon Financial Corporation and its
 Dreyfus family of mutual funds to create a new tax-deferred college investment
 program for Pennsylvania families.  Hafer said the new investment program will
 be offered in addition to the popular TAP Guaranteed College Savings Program
 and will become operational in several months.
     "We are extremely pleased to be able to partner with Mellon, headquartered
 in Pennsylvania and parent of one of America's leading mutual fund companies,
 to offer this exciting investment option to Pennsylvania families," Hafer
 said.  She announced the selection at today's meeting of the TAP Advisory
 Board.
     "Mellon has a long-standing commitment to Pennsylvania's economic future,
 so we're delighted to join the Commonwealth in helping parents make one of the
 most important investments they can -- in their children's higher education,"
 said Christopher M. "Kip" Condron, Mellon president and chief operating
 officer and Dreyfus chairman and chief executive officer.
     The new investment program will allow participants to choose among several
 mutual fund portfolios with different investment goals, guidelines and risks.
     "We know there is a tremendous demand for an investment-style program,"
 Hafer said.  "It's a powerful tool to help families meet the challenge of
 affording a college education for their children."
     Under the new investment program, Hafer explained, "the investment risk
 will be greater than under our guaranteed savings program, but the potential
 returns will be greater, too.  And the investment program will offer all the
 same Section 529 tax benefits that the guaranteed savings program offers."
     Section 529 of the US Internal Revenue Code addresses the tax treatment of
 qualified state-sponsored college savings plans.  Federal tax is deferred
 until the account is used, then growth in the account is taxed at the
 student's rate -- even though the parent (or other owner) retains full control
 of the account.  There are also significant federal estate tax benefits.
     In addition, investment accounts, like current TAP accounts, will be state
 and local tax-free, will not be subject to state inheritance tax, and will not
 reduce eligibility for state financial aid for Pennsylvania residents.
 Investment program account holders who are Pennsylvania residents also will be
 able to enroll in the SAGE Scholars program, which offers guaranteed
 scholarships at more than 120 private colleges nationally.
 The investment program will offer families multiple options, including:
 
     -- A "years to matriculation" option in which funds are concentrated in
         stocks while the child is young, then gradually moved into more
         conservative investments as the child approaches college age.
     -- At least one portfolio concentrated in stocks.
     -- At least one portfolio concentrated in bonds.
     -- At least one portfolio invested in a blend of stocks and bonds.
 
     Pennsylvania families will be able to enroll in the program four ways:  by
 calling a toll-free number; by visiting the program web site; by visiting a
 Mellon Bank branch, or by visiting any of the almost 5,000 licensed broker-
 dealers and financial advisors who sell Dreyfus mutual funds in the state.
     "Out-of-state residents also will be able to join the investment program,
 which will be marketed nationally through broker-dealers, financial planners
 and other intermediaries," said J. David Officer, Mellon executive vice
 president and Dreyfus vice chairman.  "We believe there will be several
 compelling reasons for any parent of young children in any state to consider
 Pennsylvania's new investment program."
     Hafer received legislative authorization to create the new program with
 the passage of the TAP Enhancement Act last year.  Mellon was selected from
 among five firms that submitted proposals.
     "We are pleased to be able to award this contract not only to a
 Pennsylvania company," Hafer said, "but to one that gives us such tremendous
 ability to reach Pennsylvania residents."  Mellon and Dreyfus together have
 more than two million active customers in the state, she noted.
     "Mellon/Dreyfus put together an outstanding proposal," Hafer said.  "They
 share my goal, which is to offer the best Section 529 investment plan in the
 nation."
 
     Mellon Financial Corporation is a global financial services company.
 Headquartered in Pittsburgh, Mellon is one of the world's leading providers of
 asset management, trust, custody and benefits consulting services and offers a
 comprehensive array of banking services for individuals and corporations.
 Mellon has $2.8 trillion in assets under management, administration or
 custody, including $520 billion under management.  Its asset management
 companies include The Dreyfus Corporation and Newton Investment Management
 Limited (U.K.).
     The Dreyfus Corporation, established in 1951 and headquartered in New York
 City, is one of the nation's leading fund companies, currently managing
 approximately $150 billion in more than 195 mutual fund portfolios.  Dreyfus
 Service Corporation is the distributor of Dreyfus Funds.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X74783265
 
 SOURCE  Pennsylvania Department of the Treasury

RELATED LINKS

http://www.mellon.com