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Heritage Education Funds Responds To The Changing Needs Of Their Subscribers; Increasing The Flexibility And Investment Options Of The Heritage Plan

May 30, 2014



TORONTO--(BUSINESS WIRE)-- Heritage Education Funds Inc. (Heritage), one of the leading providers of Registered Education Savings Plans (RESPs) in Canada, today announced changes to better benefit subscribers and beneficiaries of their popular Heritage Plans. These changes are intended to better meet the needs and expectations of Canadian families as they will respond to the ever-evolving post-secondary landscape.

At a special meeting of subscribers, held on May 29, 2014, a strong supporting vote by unit-holders in the Heritage Plan was in favour of increasing the flexibility and changing the investment policy parameters, giving greater access to funds for post-secondary education. These changes were reviewed and approved by the Heritage Educational Foundation Board of Directors and will apply to plans maturing after July 31, 2014.

“At Heritage Education Funds we are all about planning for the future, so it is only fitting that we ourselves need to be prepared for our clients needs for tomorrow. We are incredibly proud to offer these enhancements to the Heritage Plan, which will better meet the needs of our clients and provide greater program choices, easier Educational Assistance Payments (EAPs) qualifications and enable more of our subscribers and beneficiaries to access funds for post-secondary education,” said Onofrio Loduca, Chief Executive Officer, Heritage Education Funds Inc. “Overall, these new benefits allow an increase in the flexibility of the Plans and we hope more Canadian families will take advantage of the many benefits a Heritage Education Funds RESP offers, let alone the government grants that come along with this wonderful plan.”

The approved changes will include the following modifications:

  • Reduction of EAP qualification requirements to the minimums specified by the Income Tax Act (Canada) – This change will make it easier for students to qualify for EAPs.
  • Expansion of investment policy - This change will allow for income earned in the plan to be invested in a selection of defined equities, which is expected to result in a higher rate of return for the plans’ portfolio. Subscribers’ principal and government grants will continue to be invested in lower-risk securities.
  • Changing the rules and procedures regarding the return of sales charges (formerly referred to as membership fees) - This change will remove the discretionary component to returns of sales charges and ensure that all available funds are collected by subscribers at maturity of the plan.
  • Making defaulted and inactive plans eligible for benefits offered by the Self Determined Option - This change will result in fewer plans at risk of cancellation and forfeiting their income and government grants and more subscribers and beneficiaries having access to funds for post-secondary education.

    An RESP from Heritage can help your family prepare for your child’s future. For more information, contact your local Heritage Education Funds representative or our Customer Care team by email at CustomerCare@HeritageRESP.com, or by phone at 1.888.438.3403.

    If you have questions about the changes to the Heritage Plan, please call the Customer Care team, or visit HeritageRESP.com/BetterPlans.

    About Heritage Education Funds Inc.

    Heritage Education Funds Inc. is one of Canada’s leading providers of Registered Education Savings Plans (RESPs) and is the distributor of the Heritage and Impression Plans. Heritage’s objective is to encourage parents, grandparents and other interested adults to save for a child’s post-secondary education through a planned education savings program.

    Disclosures:

    Heritage Plans and Impression Plan are scholarship plans issued under the sponsorship of the Heritage Educational Foundation. Units of the Heritage Plans are offered by prospectus only, a copy of which can be obtained from the registered dealer Heritage Education Funds Inc. at HeritageRESP.com. These securities may not be appropriate for all investors and are subject to certain risk factors. See the prospectus for details. Heritage Education Funds (Heritage) is the trade name of Heritage Education Funds Inc.




    Media Inquires:

    Heritage Education Funds Inc.

    Alexzandria Johnson, 416-758-6494 (Direct)

    Director, Marketing

    a.johnson@HeritageFunds.ca

    Source: Heritage Education Funds Inc.


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