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§ 400.2102. Administration

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and CommerceEffective: July 5, 2005

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 73 P.S. Trade and Commerce (Refs & Annos)
Chapter 12R. Job Enhancement Act (Refs & Annos)
Chapter 21. Family Savings Account Program
Effective: July 5, 2005
73 P.S. § 400.2102
§ 400.2102. Administration
(a) Certification of service providers.--The department shall certify service providers who shall enroll eligible savers into the program.
(b) Application process.--Eligible savers shall apply to a service provider to participate in the program. The service provider shall develop an approved plan with each enrolled saver which specifies a minimum savings amount and how much money the saver intends to contribute to the saver's family savings account on either a weekly, biweekly or monthly basis. The application and approved plan shall be on a form and shall meet such requirements as deemed appropriate by the department.
(c) Ownership.--Each enrolled saver shall open an account as defined under this chapter at a financial institution that is certified by the department as qualified to participate in the program for deposit of the saver's contributions. All moneys in that account, including interest earned thereon, shall belong to the individual saver.
(d) Grants.--
(1) The department shall make a grant to a service provider from which the service provider shall provide the match for approved plans. A service provider shall deposit all grant funds in a separate account at a financial institution until the funds are withdrawn to provide the required match for a saver or are returned to the Commonwealth. Grants to service providers shall be made from and limited to funds appropriated for this purpose.
(2) If a saver's approved plan is modified and the match is reduced or a saver drops out of the program within the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year, the service provider may reassign the grant funds to other savers with approved plans within this time period. Any grant funds remaining unassigned at the end of the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year must be returned to the Commonwealth as provided in paragraph (3). If a saver's approved plan is modified and the match is reduced or a saver drops out of the program after the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year, the service provider must return the unused grant funds to the Commonwealth as provided in paragraph (3).
(3) Service providers shall return any funds due the Commonwealth pursuant to guidelines published by the department but no later than quarterly.
(4) A service provider shall be eligible for administrative and counseling costs in an amount determined by the department. No more than 9.5% of funds annually appropriated for this program may be used to reimburse service providers for eligible administrative and counseling costs of which no more than 5% may be used for administrative costs. The department may approve the use of interest earnings on grant funds held by service providers as a portion of a service provider's approved administrative and counseling costs. Eligible counseling costs shall include, but not be limited to, costs associated with interviewing potential savers, enrolling savers, monitoring a saver's progress toward fulfilling the terms of an approved plan and providing periodic money management and financial skills meetings for savers to foster the habit of continued saving. The department shall determine eligible administrative costs.
(e) Eligibility for match.--An enrolled saver with an approved plan and account monitored by a service provider must fulfill the requirements of the approved plan for a minimum of 12 months but not more than 36 months. The saver shall present satisfactory evidence to the service provider on a quarterly basis that the savings requirements are being met.
(f) Restrictions on withdrawal.--
(1) In order to obtain the match, the saver must present satisfactory evidence to the service provider that the amount being withdrawn from the saver's family savings account is being used for an eligible use. Withdrawals from a family savings account for an eligible use by a saver shall be made payable to the legal entity which provides the eligible use.
(2) The match shall be paid by the service provider to the legal entity which provides the eligible use. The match shall not be paid to the saver.
(3) A match which has not been paid for an eligible use within five years after the end of the contribution period shall be returned to the Commonwealth for deposit in the State Treasury.
(4) A saver who fails to meet the savings goal set forth in the approved plan or who decides to drop out of the program shall terminate his approved plan with the service provider according to procedures determined by the department. Upon the termination of an approved plan between a saver and a service provider, the service provider shall reassign or return the matching funds according to the provisions of subsection (d), and the saver shall be entitled to withdraw funds within the saver's account for purposes other than provided by this chapter.

Credits

1996, June 29, P.L. 434, No. 67, § 2102, added 1997, June 24, P.L. 247, No. 23, § 3, effective July 1, 1997. Amended 1998, Nov. 17, P.L. 788, No. 100, § 9, imd. effective; 2000, June 22, P.L. 310, No. 29, § 1, imd. effective; 2005, July 5, P.L. 71, No. 29, § 2, imd. effective.
73 P.S. § 400.2102, PA ST 73 P.S. § 400.2102
Current through the end of the 2023 Regular Session. Some statute sections may be more current, see credits for details.
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