Treasurer Stacy Garrity Commends House for Passing Legislation to Strengthen PA 529 and PA ABLE

Treasurer Stacy Garrity today commended members of the Pennsylvania House for unanimously approving House Bill 1745, sponsored by Rep. Paul Friel (D-26), which will provide a tax credit for employers who contribute to PA 529 College and Career Savings Program accounts owned by their employees. The bill includes an amendment sponsored by Rep. Joe Emrick (R-137) to extend the same benefit to employers who contribute to employees’ PA ABLE Savings Program accounts. PA ABLE is a savings program for Pennsylvanians with disabilities.

“PA 529 and PA ABLE accounts are helping people all across Pennsylvania, and both have seen exceptional growth over the past three years,” Treasurer Garrity said. “I applaud the House for advancing this bill to strengthen both programs with tremendous bipartisan support. Creating tax credits will encourage employers to contribute to employees’ PA 529 and PA ABLE accounts, which will be a huge benefit for hardworking families as they save for the future.”

“The PA 529 program has helped hundreds of thousands of Pennsylvania families save for their child’s or grandchild’s future education,” Rep. Friel said. “I’m pleased that the PA 529 tax credit bill passed the House unanimously. We’re coming together to improve college access and make education more affordable by reducing the financial burden on Pennsylvania’s students and their families.”

“Addressing the skills gap and strengthening our workforce starts with access to education,” said Rep. Kristin Marcell (R-178), a strong supporter of the legislation. “By encouraging employers to invest in their employees’ futures, HB 1745 not only supports Pennsylvania families but also contributes to building a more skilled and educated workforce.”

HB 1745 would establish a 25 percent tax credit on employer contributions of up to $500 per participating employee per year. It would apply to contributions made to any PA ABLE account and any 529 account owned by a Pennsylvania resident.

Incorporating a tax credit for Pennsylvania employers who provide contributions to PA 529 accounts was recommended by the Tuition Account Program Advisory Board in the program’s most recent annual report. Seven other states – Arkansas, Colorado, Idaho, Illinois, Nebraska, Nevada and Wisconsin – provide a similar credit.

HB 1745 now moves to the Senate for consideration. Treasurer Garrity thanked Rep. Friel, Rep. Marcell, Rep. Emrick, Rep. Peter Schweyer (D-134), and Rep. Jesse Topper (R-78) for their key roles in advancing the legislation in a bipartisan fashion.

The PA 529 College and Career Savings Program helps families steadily and strategically save for future educational expenses like tuition, fees, books, equipment, room and board and more at qualifying technical, collegiate and apprenticeship programs. PA 529 plans also offer significant state and federal tax advantages and saving with PA 529 does not impact Pennsylvania state financial aid eligibility.

There are two options to invest with PA 529: the PA 529 Guaranteed Savings Plan, which allows families to save at today’s tuition rates to meet tomorrow’s tuition costs, and the PA 529 Investment Plan, which allows families to choose from a variety of investment options and received a Gold Rating from Morningstar in 2023, making it one of the top two 529 plans in the nation.

The PA 529 program has been helping families save and pay for education for more than 30 years. There are currently almost 300,000 PA 529 accounts with assets of nearly $7.5 billion.

Visit pa529.com to learn more about the PA 529 College and Career Savings Program.

PA ABLE (Achieving a Better Life Experience) accounts are a tax-free way for Pennsylvanians with disabilities, and their families, to save without affecting eligibility for important benefits. Treasurer Garrity recently announced the program’s fourth fee reduction in the past three years, resulting in annual savings of more than $80,000 for PA ABLE account owners.

To learn more about program eligibility and how to start saving with PA ABLE, visit paable.gov.

Pennsylvania Treasury Department Warns for Scam Alerts

Treasurer Stacy Garrity today warned the public that scammers are imitating the Pennsylvania Treasury Department with sophisticated phishing emails targeting Pennsylvanians.

“I urge everyone to always be on guard for scams and suspicious messages,” Garrity said. “We know these criminals will pull out all the stops to commit fraud, but Treasury will always fight back. If you have doubts about an email claiming to be from the Pennsylvania Treasury Department, here’s the most important tip: Do not click any links, and do not share any personal information. And always remember: Treasury will never seek personal information through an unsolicited email.”

The scammers’ phishing emails are designed to look like they have been sent from the Pennsylvania Treasury Department and include a link that leads to a fake version of Treasury’s website. Anyone who clicks on the link is then prompted to enter login credentials. Do not do this! Treasury will never use unsolicited emails or texts to request personal information for any if its programs.

If you’ve received one of these messages, or have any other questions, please contact Treasury by visiting patreasury.gov/contact.

Pennsylvania Treasurer News

Treasurer Stacy Garrity Wants to Make Sunday’s Big Game Even More Super for Pennsylvanians with Unclaimed Property

To celebrate the Philadelphia Eagles earning a spot in Sunday’s big game, Treasurer Stacy Garrity said today that more than $35.3 million is owed to 282,595 Pennsylvanians and Philadelphia sports fans alike with a name or business name that includes the words Jalen, Hurts, Jason, Kelce, Haason, Reddick, DeVonta, Smith, Eagles, Fly, Super, or Bowl.

“I’m one of the millions of fans rooting for the Eagles to win on Sunday – and I’m also rooting for Pennsylvanians to claim property that rightfully belongs to them,” Garrity said. “One of my top priorities as Pennsylvania’s Treasurer is to help the residents of our great state score touchdown after touchdown when it comes to unclaimed property. I encourage everyone to search for unclaimed property this weekend. It can be done so fast online that you won’t even miss the commercials!”

Unclaimed property includes things like dormant bank accounts, uncashed checks, forgotten stocks, insurance policies, tangible property like the contents of abandoned safe deposit boxes, and more. State law requires businesses to report unclaimed property to Treasury after three years of dormancy.

Last year, Treasury returned more than $211 million to Pennsylvanians, the most returned in a calendar year since 2018 – also the last time the Eagles brought home the Lombardi Trophy.

In total, Treasury is currently seeking the owners of more than $4 billion in unclaimed property. One in ten Pennsylvanians is owed unclaimed property, and the average value of a claim is $1,600.

To learn more about unclaimed property or to search Treasury’s database, visit patreasury.gov/unclaimed-property.

Media Contact:
Samantha Heckel, Press Secretary, 717-418-0206 or sheckel@patreasury.gov

Treasurer Stacy Garrity Announces Return of More Than $60,000 in Unclaimed Property to Lackawanna County

Pennsylvania Treasurer Stacy Garrity and Lackawanna County officials announced today that more than $60,000 in unclaimed property has been returned to Lackawanna County.

“It’s exciting to get this money back where it belongs – to benefit the residents of Lackawanna County,” Treasurer Garrity said. “As long as I serve as Pennsylvania’s treasurer, I will work with our team to return property to its rightful owners, no matter how long it has been unclaimed – and regardless of whether it’s valued at a few dollars or thousands of dollars. I encourage everyone to search our online database to see if they, their loved ones or their government or business entity may be owed some of the more than $4 billion in unclaimed property safeguarded by Treasury.”

“The Lackawanna County Controller’s Office appreciates the assistance of Pennsylvania Treasurer Stacy Garrity and her staff in facilitating the process of returning $60,436.61 of unclaimed property back to Lackawanna County where it will now benefit county taxpayers,” Lackawanna County Controller Gary DiBileo said.

“In times like this, every dollar counts,” Lackawanna County Commissioner Chris Chermak said. “Having this unclaimed property returned to our county is great news for taxpayers, and I will work to ensure that it’s put to good use. I thank Treasurer Garrity and her team for working with Lackawanna County to get this money back where it belongs – and I encourage everyone to search and see if there’s any unclaimed property waiting for you.”

The $60,436.61 returned to Lackawanna County included 111 individual properties ranging in value from $0.01 to $21,151.89. The oldest property dates back to 1985, while the most recent is from 2019. Properties returned include accounts payable checks, claims payments checks, cashier’s checks, court deposits, and other forms of unclaimed property. How the funds are spent will be determined by county officials.

Treasurer Garrity has returned nearly $7 million to 43 local governments, including counties and municipalities, since taking office.

Treasury is working to return more than $4 billion in unclaimed property to its rightful owners. About one in ten Pennsylvanians is owed unclaimed property, and the average claim is worth nearly $1,600.

Unclaimed property can include dormant bank accounts, claims payments, accounts payable, uncashed checks, insurance policies, contents of forgotten safe deposit boxes and more. State law requires businesses to report unclaimed property to Treasury after three years of dormancy.

To learn more about unclaimed property or to search Treasury’s database, visit patreasury.gov/unclaimed-property.

Media contact:
Samantha Heckel, Press Secretary (Treasury), 717-418-0206 or sheckel@patreasury.gov

Gary DiBieleo, Controller (Lackawanna County), 570-963-6726 or dibileog@lackawannacounty.org

Treasury Announces Transition to New Unemployment Compensation Prepaid Debit Card Provider

The Pennsylvania Treasury Department today announced the beginning of a transition period to a new prepaid debit card provider for Unemployment Compensation (UC) and State Workers’ Insurance Fund (SWIF) claimants.

Claimants of both programs are strongly encouraged to verify that they have their correct mailing address on file with the Department of Labor & Industry (L&I) to ensure all mailings reach them in a timely manner. Claimants can also change their payment method to direct deposit by visiting L&I’s website.

Money Network prepaid debit cards, issued by My Banking Direct, will replace U.S. Bank ReliaCards® currently in use. Beginning on or about March 6, 2023, the Money Network prepaid debit cards will be mailed to UC/SWIF recipients who receive benefit payments via prepaid debit card.

The new card will arrive in a plain white envelope with an Omaha, Nebraska, return address. Recipients should be sure to remove the card before discarding this envelope.

Here are images of the new Money Network prepaid debit card (left) and the U.S. Bank ReliaCard® (right):

reliacard
reliacard

Here’s the anticipated timeline of the transition to Money Network prepaid debit cards:

  • Starting February 17, 2023: New UC/SWIF claimants who request payment by prepaid debit card will be enrolled with Money Network.
  • February 17, 2023, through approximately March 20, 2023: Anyone filing a claim during this timeframe will likely receive one or more benefit payments via check issued by the Pennsylvania Treasury Department and mailed to the address on record with L&I.
  • February 28, 2023: The last day UC/SWIF benefit payments will be loaded to ReliaCards.
  • March 1, 2023, through March 23, 2023: Anyone who received benefit payments via a ReliaCard prior to March 1, 2023, will receive payments during this period via check issued by the Pennsylvania Treasury Department and mailed to the address on record with L&I.
  • Beginning March 6, 2023: Money Network prepaid debit cards will be sent via U.S. mail to UC/SWIF claimants who request payment by prepaid debit card.
  • Beginning March 24, 2023: All UC benefit payments made via prepaid debit card will be loaded onto Money Network prepaid debit cards.

Claimants should note that any remaining balances on U.S. Bank ReliaCards® will not transfer to the new Money Network prepaid debit cards. Those with remaining funds on U.S. Bank ReliaCards® should continue to use the card until it reaches a zero ($0.00) balance. Remaining funds can also be transferred to a personal savings or checking account.

While the number of people affected by this change will vary depending on the number of claims, approximately 47,000 claimants statewide will receive Money Network prepaid debit cards by the end of March. Nearly all of those will be recipients of UC benefits; the number of SWIF benefit recipients affected by the change is estimated to be fewer than 20.

Treasury makes no determinations regarding UC and SWIF eligibility or benefit payment amounts. All questions regarding program eligibility and payment amounts should be directed to L&I.

For more information on the transition to new Money Network prepaid debit cards visit Treasury’s webpage about the transition, Treasury’s FAQ, and L&I’s UC website.

In 2022, as Treasury’s contract with U.S. Bank for the ReliaCard was coming to an end, Money Network was selected as the successful bidder to provide debit card services to the UC program following an extensive and open competitive procurement process. Money Network Financial, LLC, is a wholly owned subsidiary of Fiserv, headquartered in Brookfield, Wisconsin. The Money Network prepaid debit card is issued by My Banking Direct, a service of New York Community Bank.

Claimants with questions can email UCDtreasuryweb@patreasury.gov or call 877-869-1956.

Media contact:
Samantha Heckel, Press Secretary, 717-418-0206 or sheckel@patreasury.gov

Treasurer Announces Report Findings

Pennsylvania Treasurer Stacy Garrity, Center for Rural Pennsylvania Board Chairman Sen. Gene Yaw (R-23), Center for Rural Pennsylvania Vice Chairman Rep. Eddie Day Pashinski (D-121), and Center for Rural Pennsylvania Executive Director Dr. Kyle C. Kopko today announced the findings of a study analyzing the differences in how residents of rural counties use and benefit from the PA 529 College & Career Savings Program compared to residents of urban counties.

The analysis, performed by the Center for Rural Pennsylvania at the request of the Pennsylvania Treasury Department, concluded that urban county beneficiaries of PA 529 accounts have more savings for postsecondary education than rural account beneficiaries even after taking into account various statistical factors. Treasurer Garrity said the report shows the importance of emphasizing outreach to rural counties across Pennsylvania, which she has focused on since taking office.

“Every Pennsylvanian deserves access to quality postsecondary education opportunities – whether that means a four-year university, community college, technical school or an apprenticeship,” Treasurer Garrity said. “This report shows that we’re doing the right thing by increasing our outreach to our rural counties, which are all too often forgotten in Harrisburg. As a lifelong resident of Bradford County, one of our most rural counties, I’m committed to making sure every corner of the state understands the benefits of PA 529. I’ve visited every county in Pennsylvania each of the last two years, and I always talk about the benefits of PA 529 and how saving with PA 529 can help families reach their education goals.”

Between January 2018 and March 2022, more than 60 percent of all contributions to PA 529 accounts, went to PA 529 Investment Plan (IP) accounts in the 19 counties defined as urban by the Center for Rural Pennsylvania.

“The Center for Rural Pennsylvania was pleased to partner with the Treasury Department to analyze its data and publish this new research,” said Chairman Sen. Yaw. “This report will help raise awareness among rural residents about PA 529 accounts and how these accounts may be useful to them to save for future education and workforce training needs.”

 “As a former teacher, I know how important a quality education is for a student’s long-term success,” said Vice Chairman Rep. Pashinski. “PA 529 savings accounts can make quality post-secondary education possible and affordable for more families.”

“The data presented in this report yield several important findings,” said Dr. Kyle C. Kopko, Center for Rural Pennsylvania Executive Director. “Chief among them is the finding that there is a gap in 529 plan contribution levels between rural and urban account holders – even after accounting for a range of statistical factors that may influence contributions.” 

The report, Differences in Rural and Urban PA 529 Education Savings Accounts, 2018-2022, also found a sharp increase in PA 529 contribution amounts during the third and fourth quarters of 2021. This followed action by the U.S. Department of the Treasury to offer advances on the Child Tax Credit, allowing parents making less than $400,000 filing jointly to receive part of their CTC reimbursement as monthly checks. However, the report concluded that more evidence is needed as to whether those policy changes contributed to the increase.

To better reach rural communities across the Commonwealth, Treasury expanded its outreach team in 2022 by adding a Director of Outreach and Marketing and creating three regionally located outreach positions. The outreach team attends county fairs, senior expositions, legislative programs, and other events to connect with people directly. They also connect with community organizations and educational institutions to establish stronger partnerships.

The Keystone Scholars program has helped increase new PA 529 accounts for families in rural counties. Keystone Scholars provides $100 investment to every baby born to or adopted by Pennsylvania families on or after January 1, 2019, using no taxpayer money. PA 529 account ownership has increased in nearly all rural counties since the program’s launch.

PA 529 accounts are designed to help Pennsylvania families steadily and strategically save for future educational expenses – including universities, community colleges, trade schools, apprenticeships, and K-12 education – with significant state and federal tax advantages.

Treasury offers two PA 529 plans; the PA 529 Guaranteed Savings Plan (GSP), which allows families to save at today’s tuition rates to meet tomorrow’s tuition costs, and the Morningstar Silver-Rated PA 529 Investment Plan (IP), which offers a variety of investment options.

Treasurer Garrity has made many changes to ease access to PA 529 accounts and bolster savings for families using the program. She eliminated the minimum deposit to open a PA 529 account and lowered the minimum contribution to $1. PA 529 IP account owners have seen a state fee reduction, while PA 529 GSP account owners had asset-based fees waived for the current fiscal year and qualifying GSP accounts received a $100 deposit last summer funded by GSP fund surplus earnings.

The Center for Rural Pennsylvania is a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly. It was created by Act 16 of 1987, the Rural Pennsylvania Revitalization Act. The Center works with the legislature, educators, state and federal executive branch agencies, and national, statewide, regional, and local organizations to maximize resources and strategies that can better serve Pennsylvania’s nearly 3.4 million rural residents.

For more information about PA 529 accounts, visit pa529.com.

Media Contacts:
Samantha Heckel, Press Secretary (Treasury), 717-418-0206 or sheckel@patreasury.gov

Christine Caldara Piatos, Communications Manager (Center for Rural Pennsylvania), 717-787-9555 or caldarac@rural.pa.gov

Treasurer Announces $50 Million Savings for Keystone Scholars

$100 jumpstart for newborns encourages education savings for youngest Pennsylvanians

Treasurer Stacy Garrity today announced that families who have registered their child’s Keystone Scholars accounts have saved more than $50 million for their children’s future education in linked PA 529 College and Career Savings Program accounts.

“Keystone Scholars is a catalyst to help families start saving as early as possible for their child’s postsecondary education – and this $50 million contribution milestone shows the program is working wonders for our youngest Pennsylvanians,” Garrity said. “The initial $100 Keystone Scholars deposit grows alongside a child until they’re ready to follow their career or education journey, and I’m so excited to see families making a commitment to save early for their child’s future education by opening their own PA 529 accounts.”

Keystone Scholars provides a $100 investment for every child born to a Pennsylvania family on or after January 1, 2019, including those adopted. The program uses no taxpayer money, and the funds are invested by Treasury. Accounts can be used after a child’s 18th birthday to help pay for a wide variety of technical, collegiate and apprenticeship expenses. There are currently more than 480,000 funded Keystone Scholars accounts.

Keystone Scholars is the first legislated, universal, automatic, at-birth program of its kind, and is a national model for Child Development Accounts (CDAs). CDAs have been shown to have multiple positive outcomes, including increased parental expectations for children’s educational future and improved social and emotional development for children. Research shows that children with even a modest amount of savings for education are three times more likely to attend a two- or four-year postsecondary institution, and four times more likely to graduate.

The implementation of Keystone Scholars has helped increase PA 529 account ownership statewide, including growth among low-income families and families in rural communities.

“I encourage any new or expectant parent to visit pa529.com/keystone to register or pre-register their Keystone Scholars accounts and learn more about the power of saving with our PA 529 program,” Garrity said. “It’s never too early, or too late to start saving for your child’s future, and once Keystone Scholars and PA 529 accounts are linked, families will see both balances grow side-by-side.”

The PA 529 College and Career Savings Program is designed to help PA families steadily and strategically save for future educational expenses. Treasury offers two plans; the PA 529 Guaranteed Savings Plan (GSP), which allows you to save at today’s tuition rates to meet tomorrow’s tuition costs, and the PA 529 Investment Plan (IP), which offers a number of investment options. PA 529 plans have significant state and federal tax advantages and can be used for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses.

To learn more, or to register your child’s Keystone Scholars account, visit pa529.com/keystone.

Media Contact:
Samantha Heckel, Press Secretary, 717-418-0206 or sheckel@patreasury.gov

Treasurer Announces Contributions Surpassed $100 million

Pennsylvania Treasurer Stacy Garrity announced today that total contributions to the PA ABLE Savings Program have surpassed $100 million. PA ABLE (Achieving a Better Life Experience) accounts are a tax-free way for Pennsylvanians with qualifying disabilities and their families to save without affecting eligibility for means-tested government disability benefits.

“Reaching this milestone demonstrates the power of PA ABLE and reflects all the positive impacts the program has made for account owners and their families,” Garrity said. “Everyone deserves financial independence and security, and PA ABLE helps Pennsylvanians with disabilities to save money for necessary expenses without losing any of the disability benefits they rely on.”

Pennsylvanians have contributed $101.2 million to PA ABLE accounts since the program’s inception in 2017. More than $25.7 million has been withdrawn for disability-related expenses, like groceries, rent, healthcare, transportation, and longer-term expenses including education and assistive technology.

In 2022 alone, PA ABLE account owners contributed $28 million, while $9 million was withdrawn. Nearly 1,500 Pennsylvanians opened new PA ABLE accounts during that time.

PA ABLE offers seven different savings and investment options, including a checking account. Contributions of up to $17,000 per year can be deducted on PA state income taxes, and PA ABLE account owners pay no federal or state income tax on account growth when used for qualified withdrawals.

Treasurer Garrity was elected the inaugural chair of the ABLE Savings Plan Network (ASPN) late last year and will oversee ASPN’s strategic leadership and policies which aim to advance and bolster ABLE accounts nationwide.

In December, Congress passed the ABLE Age Adjustment Act, which raised the age limit for onset of a disability from 26 to 46 beginning in 2026. An estimated 6 million more Americans, including one million veterans, will be eligible to open ABLE accounts beginning in 2026. The bill was introduced by U.S. Senator Bob Casey, who championed the original ABLE Act of 2014, and cosponsored by retired U.S. Senator Pat Toomey. A corresponding House bill had 17 cosponsors from Pennsylvania’s 18-member delegation.

PA ABLE is the largest program in the 18-member National ABLE Alliance, accounting for more than 25% of total Alliance assets. Currently, more than 7,100 Pennsylvanians have PA ABLE accounts. The program was created by state legislation with leadership from Sen. Lisa Baker and former Rep. Bernie O’Neill.

Visit paable.gov or call 855-529-2253 to learn more about PA ABLE.

Media contact:
Samantha Heckel, Press Secretary, 717-418-0206 or sheckel@patreasury.gov

Treasurer Stacy Garrity Announces Benefits for PA 529 & PA ABLE Savings Programs

The tax benefits for contributing to PA 529 and PA ABLE accounts are getting better in 2023, Treasurer Stacy Garrity announced today. Higher Pennsylvania state personal income tax deductions are now in place for both programs.

PA 529 account owners may deduct up to $17,000 (previously $16,000) of contributions to their accounts, or $34,000 (previously $32,000) for couples filing jointly, provided both spouses have at least $17,000 of income. The PA state income tax deduction for 529 contributions is available to any PA taxpayer, making gift contributions an attractive benefit for family members or friends.

PA ABLE account owners will also be able to deduct up to $17,000 (previously $16,000) for contributions to their accounts.

“Both PA 529 and PA ABLE accounts have excellent tax advantages, and the higher deduction limits will help bolster savings for account owners,” Garrity said. “Treasury’s savings programs are valuable tools that help Pennsylvania families meet their financial goals. If anyone is thinking about starting to save with PA 529 or PA ABLE accounts, I encourage them to visit Treasury’s website to learn how these accounts can have a big impact on improving financial security and wellness.”

The PA 529 College and Career Savings Program is designed to help PA families steadily and strategically save for future educational expenses. Treasury offers two plans; the PA 529 Guaranteed Savings Plan (GSP), which allows you to save at today’s tuition rates to meet tomorrow’s tuition costs, and the PA 529 Investment Plan (IP), that offers a number of investment options. PA 529 plans have significant state and federal tax advantages and can be used for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses.

The PA ABLE Savings Program is a tax-free way for Pennsylvanians to save for a wide range of disability-related expenses while maintaining government disability benefits. PA ABLE provides various savings options including an interest-bearing checking account and investment portfolios. The contribution limit for PA ABLE accounts in 2023 is $17,000.

PA ABLE is the largest program in the 18-member National ABLE Alliance, accounting for nearly 25% of total assets, and one of the largest ABLE programs in the country. Treasurer Garrity was elected the inaugural chair of the new ABLE Savings Plan Network in November 2022.

To learn more about PA 529, visit pa529.com or call 800-440-4000. To learn more about PA ABLE, visit paable.gov or call 855-529-2253.

Media Contact:
Samantha Heckel, Press Secretary, 717-418-0206 or sheckel@patreasury.gov

Treasurer Stacy Garrity: U.S. Supreme Court To Hear Pennsylvania Unclaimed Case

The U. S. Supreme Court will hear oral arguments on Monday, October 3, in a dispute first filed in 2016 by Pennsylvania against Delaware involving unclaimed property. Following Pennsylvania’s lead, 29 other states later joined the suit.

It’s estimated that Delaware could owe as much as $400 million in escheated funds to other states – including nearly $19 million to Pennsylvania – as unclaimed property from MoneyGram Payment Systems, Inc., a provider of money transfer and bill payment services.

“Pennsylvania was the first state to challenge Delaware’s actions in court six years ago,” said Pennsylvania Treasurer Stacy Garrity. “We’re pleased that so many other states have adopted our position and followed our lead. I’m optimistic that the Supreme Court will make the right decision to return these funds to Pennsylvania and the other states so that we can work to return the money to the real owners of this unclaimed property – hardworking taxpayers across Pennsylvania and the nation.”

This is the first time in almost 30 years that the Supreme Court will consider a question involving the laws governing unclaimed property.

In May 2021, SCOTUS-appointed Special Master Judge Pierre N. Leval of the 2nd Circuit Court of Appeals ruled in Pennsylvania’s favor – in a 100-page report – that Delaware improperly demanded and received uncashed MoneyGram checks purchased in other states.

Pennsylvania argues that uncashed “official checks” sold by MoneyGram in Pennsylvania are a form of money order. According to the Federal Disposition Act (FDA), uncashed money orders and similar instruments are to be escheated to the state in which they were originally purchased. Delaware argues that MoneyGram’s “official checks” do not fall into this FDA classification, and are therefore due to the state where the company is incorporated.

As part of Special Master Leval’s 2021 decision, he conclusively determined the disputed MoneyGram “official checks” should be returned to the state of original purchase in compliance with the FDA. He found Delaware’s argument to be logically “flawed” and both “insubstantial and unpersuasive.”

“Delaware has an aggressive, well-documented history of demanding unclaimed funds and then using those funds to cover a substantial portion of its state budget,” Garrity said. “In fact, when this matter began, Delaware admitted that unclaimed property was the third-largest budget source for the state. But – as demonstrated by the Special Master’s decision – these MoneyGram checks were claimed and received by Delaware and are rightfully due to other states, where the original owners will have a chance to reclaim their property.”  

Pennsylvania’s case was originally filed in February 2016 in the U.S. District Court for the Middle District of Pennsylvania. The case was subsequently moved to the Supreme Court as a dispute between states that falls within the Supreme Court’s original jurisdiction. After Pennsylvania’s filing, 29 other states filed suit using the same legal arguments advanced by Pennsylvania.

Pennsylvania is the only state directly represented by its unclaimed property administrator, Treasurer Garrity. Pennsylvania Treasury is represented by its Chief Counsel, Christopher B. Craig, along with Matthew H. Haverstick and Joshua J. Voss of Philadelphia-based Kleinbard LLC.

The other states include Alabama, Arizona, Arkansas, California, Colorado, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming, all of whom are represented by their respective Attorney General Offices.