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Announcing Changes to The Hartford SMART529 Plan

Two changes to investment options in The Hartford SMART529 Plan are scheduled to be implemented on or about Monday, July 26, 2010. The Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program considered and approved these initiatives at meetings held on February 18, 2010, and June 2, 2010. These initiatives take into consideration fund performances, tuition inflation, and economic conditions.

Investment Option Changes
Three investment options will be removed from the program and replaced with comparable alternatives:

Existing Investment Option Succeeding Investment Option
The Hartford Global Growth 529 Fund > MFS Global Equity 529 Fund
Putnam International Equity 529 Fund > The Hartford International Opportunities 529 Fund
Mutual Shares 529 Fund >  The Hartford MidCap Value 529 Fund

 

The new investment options are substantially similar to those being replaced. The decision to replace the existing options was based on historical investment performance, and underlying fund expenses.

The program manager or its affiliates will bear the customary expenses associated with these changes. These actions are expected to be tax-free; it is anticipated that account owners will not pay any federal income tax as a result of the fund changes.

For further information, please review Q&As Regarding Changes to The Hartford SMART529 Investment Options.

Adjustments to Age-Based Bands
The Board, with the advisement of its independent legal counsel and investment consultant, has approved a change to The Hartford SMART529 age-based bands. This change was based on a review of the age-based model and comparative performance, and takes into consideration fund performances, tuition inflation, and economic conditions. The Board believes that adjusting the age-based bands is in the best interest of account owners.

A key component of the program manager's research shows beneficiaries' college savings experiences remain relatively unchanged in the early years; however, their risk tolerance changes rapidly as college years approach. As a result, an additional age-band has been added, with a redefinition of age bands and equity/fixed income percentages starting with the 14–15 Portfolio.

Beneficiary Age at Time of Realignment  Existing Age Band  New Age Band
 0–8 The Hartford SMART529 Age-Based Portfolio 0–8 No change
9–13 The Hartford SMART529 Age-Based Portfolio 9–13 No change
14–15 The Hartford SMART529
Age-Based Portfolio 14–18		 The Hartford SMART529
Age-Based Portfolio 14–15
16–17 The Hartford SMART529
Age-Based Portfolio 14–18		 The Hartford SMART529
Age-Based Portfolio 16–17
18 The Hartford SMART529
Age-Based Portfolio 14–18		 The Hartford SMART529
Age-Based Portfolio 18+
19 or older The Hartford SMART529
Age-Based Portfolio 19+		 New: The Hartford SMART529 18+ Portfolio

 

The program manager or its affiliates will bear the customary expenses associated with these changes. These actions are expected to be tax-free; it is anticipated that account owners will not pay any federal income tax as a result of the fund changes.

For further information, please refer to Q&As Regarding Changes to Age-based Bands.

Updated 06/09/2010
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SMART529 is offered by the West Virginia College Prepaid Tuition and Savings Program
Board of Trustees and is administered by Hartford Life Insurance Company.

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You should carefully consider the investment objectives, risks, charges and expenses of SMART529 and its Underlying Funds before investing. This and other information can be found in the Offering Statement for SMART529 and the prospectuses or other disclosure documents for the Underlying Funds, which can be obtained on SMART529.com or by calling 866-574-3542. Please read them carefully before you invest or send money. SMART529 is distributed by Hartford Securities Distribution Company, Inc. Member SIPC.

If you reside in or have taxable income in a state other than West Virginia, you should consider whether your state has a qualified tuition program that offers favorable state income tax or other benefits exclusive to your state’s program that are not available under the SMART529 program.

Non-qualified withdrawals are taxable as ordinary income to the extent of earnings and may also be subject to a 10% federal income tax penalty. Such withdrawals may have state income tax implications.

Investments in SMART529 are not guaranteed or insured by the State of West Virginia, the Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program, the West Virginia State Treasurer’s Office, Hartford Life Insurance Company, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.


“The Hartford” is The Hartford Financial Services Group, Inc. and its subsidiaries.
"The Hartford" is a registered trademark of Hartford Fire Insurance Company.
"SMART529" is a registered trademark of the West Virginia College Prepaid Tuition and Savings Program Board of Trustees.