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College Savings Boosted by ADP's 529 Payroll Deduction Program |
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Roseland, New Jersey | June 24, 2002: Working Americans of all income levels will soon find it easier to save money for higher education thanks to the first integrated payroll deduction program for corporate-sponsored 529 college savings plans to be rolled out by a national payroll provider.
Automatic Data Processing, Inc. (ADP®) Employer Services division, a leading provider of payroll services, benefits administration and human resource systems, is piloting a fully automated 529 payroll deduction program with its payroll clients and CollegeBoundfund (managed by Alliance Capital and administered by the State of Rhode Island), in select regions. Based on the popularity of the pilot program, ADP intends to expand the availability of this new payroll deduction program nationally in September.
In the early fall, ADP also intends to introduce its ADP 529 Partners Program. Through this initiative, ADP will extend its 529 payroll deduction program to other financial institutions that are 529 providers/administrators, thereby enabling them to offer ADP's 500,000 payroll clients fully integrated and easy to administer corporate-sponsored 529 college savings plans.
"Up until very recently, 529 college savings programs were marketed primarily to high net worth individuals," said Joe Grana, Vice President of Marketing, ADP's 529 Services. "ADP expects to be a key driver in helping Americans increase their college savings because the company processes payroll for one-in-six Americans. By introducing ADP's 529 payroll deduction program to our payroll clients, we can help broaden the availability of corporate-sponsored 529 college savings plans while simplifying the administration of such programs. Employees at all income levels consistently rate retirement and sending their children to college as the most important life events for which they plan and save."
"The 529 college savings plan is growing rapidly in popularity because it is one of the most effective tax management and educational savings tools available. Americans currently have $1.5 trillion tucked away in savings for college and the new payroll deduction plan is expected to add significantly to that amount." said Joseph Hurley, founder of Savingforcollege.com and a 529 college savings plan expert. "A systematic 529 college savings contribution method in the form of payroll deduction will make the benefits of 529 college savings plans available to more American families than ever before."
About ADP
Automatic Data Processing, Inc. (NYSE:ADP) is one of the largest independent computing service firms in the world, with approximately $7 billion in revenue and 500,000 clients. ADP's Employer Services (ES) Division is a leading provider of integrated business administrative solutions that help its approximately 455,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP's ES offerings include both traditional and Internet-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefits administration, time and labor management, retirement plan services, online recruiting, PEO services and pre-employment screening. |
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