NewsLocal News


Deputy Director appointment concerns Maryland 529 account holders

Posted at 5:21 PM, Jun 05, 2023
and last updated 2023-06-05 17:21:08-04

BALTIMORE — Account holders with Maryland 529 prepaid trusts are slowly losing hope that they’ll receive their full interest payments.

State treasurer Dereck Davis took over the 529 program last week.

RELATED: Treasurer promises quick resolution as he takes over embattled 529 savings plan

Account holders have learned Tony Savia will be a Deputy Treasurer over Maryland 529 in the treasurer's office.

Savia was the executive director of Maryland 529 since September of last year until the board was dissolved and the treasurer took over.

For account holders, this is not the news they wanted from Davis.

“I’m very disappointed and surprised at what’s gone on in the last five days," said Eric Marshall, who has several 529 accounts.

Parents are fighting for interest payments they believe are being taken away from them.

At the end of 2021, accounts showed a large amount of money, for some it was nearly double because of interest payments.

Then the board decided to freeze the accounts calling the increase an error.

Recalculations were done and some accounts went back down to the original amount they put in more than a decade ago.

“I was floored, I don’t understand why you would appoint the very person who was in charge during this whole time when all the mistakes were made when all the communication was lacking, when all the deadlines were missed, why would you appoint that person to help lead under the treasurers office," said Judy O'Connor.

For O’Connor who has two prepaid accounts, her hope is dwindling to get this money back.

“It’s doubtful which is extremely disappointing," said O'Connor.

Treasurer Davis’ office said that Savia’s responsibilities will be similar to when he was executive director, but made clear the accountability will start and end with the state treasurer.

The treasurer said he hopes to have a resolution during the fall semester.

For account holders, the hope that this will come to a solution they agree with is waning.

“Everything that’s happened since then has gone down hill and I think it’s leaning towards some sort of a legal case," said Marshall.

Account holders can see how much money an investment in a Maryland 529 plan is expected to earn at here.