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Finance moves $ from 529-fund commissions to support UNH; committee approves transfer
Summary
The committee approved transferring revenue tied to the state’s 529 plan commission payments to support UNH-related funding in Division 2; sponsors said the commission funds come from Fidelity’s management fees and do not affect individual account holders.
The House Finance Committee approved an amendment to move revenue derived from 529-plan program commissions — funds Fidelity pays to the state under the program’s administrative arrangement — to Division 2 to help support the University of New Hampshire system.
Representative Wyler, who has overseen the program in prior budgets, explained the money is not invested principal from families’ 529 accounts; rather it is the share Fidelity pays the state as the program manager. The distribution historically funds scholarships and college-savings endowments and can be used by the legislature for other higher-education support by appropriation. The committee accepted the transfer language and corresponding HB1 amendment.
Sponsors stressed the transfer preserves account holders’ balances and does not change individual 529 tax-advantaged accounts. The amendment passed on a vote of 6 in favor and 2 opposed.
The change will route the identified revenue stream into the treasurer’s Division 2 appropriations for the university system; committee staff said the move matches prior practice and is budgetarily neutral with respect to account holders.
