SMART529 West Virginia Prepaid Tuition Plan

SMART529 West Virginia Prepaid Tuition Plan

Disclosure Statement and

Participation Agreement

Effective December 13, 2019

Purpose of the Disclosure Statement

This Disclosure Statement provides important information concerning certain material risks associated with investing in the Plan. However, this Disclosure Statement is not intended to be an exhaustive or definitive description of the features of the Plan or its implications and risks. Each statement contained in this Disclosure Statement is subject to qualification in its entirety by the terms and conditions of each document comprising the Account and other documents relating to the Plan, by the descriptions contained elsewhere in this Disclosure Statement and by other matters beyond the control of the Board of West Virginia College Prepaid Tuition and Savings Program. Capitalized terms not defined in this Disclosure Statement have the meanings as defined in the Participation Agreement and referenced state and federal statutes, rules and regulations. Headings used in this Disclosure Statement are for convenience only and are not intended to define, limit, expand, or describe the scope or extent of this Disclosure Statement.

The West Virginia Prepaid Tuition Plan is closed to new enrollment and will terminate in June 2022.

SMART529 WEST VIRGINIA PREPAID TUITION PLAN

Supplement Dated March 12, 2021

To the Disclosure Statement and Participation Agreement effective December 13, 2019

Terms used and not defined in this supplement have the same meaning as in the Disclosure Statement and Participation Agreement.

Announcement of Termination and Distribution of Plan Proceeds

The West Virginia Prepaid Tuition and Savings Program Board of Trustees has determined that the Prepaid Tuition Plan will close earlier than previously communicated to you.

On or about September 30, 2021, a lump sum final payment for any remaining Units in an Account will be paid to all Account Owners. The valuation of the payout amount will be included in a letter that will be provided to Account Owners. All references to the June 2022 date in the Disclosure Statement are hereby deleted.

As a result, the Amended and Restated Participation Agreement, last amended December 13, 2019, is further amended, effective immediately, to add the following new Section 4.6:

4.6 Closure of Prepaid Tuition Plan. Effective on or about September 30, 2021, Accounts in the Prepaid Tuition Plan will be liquidated and Account Owners will receive a final lump sum payout for Units held as separately set forth in a communication by the State.

This supplement should be retained with the Disclosure Statement for future reference.

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SMART529 West Virginia Prepaid Tuition Plan

Disclosure Statement and Participation Agreement

Table of Contents

Disclosure Statement

3

Program Overview

3

Program Administration

3

Opening an Account

4

Qualifying Account Owners

4

Designated Beneficiaries

5

Changing Account Owners

5

Making Contributions

5

Prepaid Tuition Plan Benefits

6

Distributions

7

Tax and Planning Considerations

8

Important Information

11

Participation Agreement

13

Privacy Notices

22

SMART529 West Virginia Prepaid Tuition Plan

Disclosure Statement

Effective December 13, 2019

Program Overview

The SMART529 West Virginia Prepaid Tuition Plan ("Prepaid Tuition Plan") is a state-sponsored qualified tuition program offered by the West Virginia College Prepaid Tuition and Savings Program Board of Trustees ("Board of Trustees"), which is an entity of the State of West Virginia. While the West Virginia College Prepaid Tuition and Savings Program ("Program") encompasses multiple components and options, only the Prepaid Tuition Plan is described in this Disclosure Statement. If there are any discrepancies in the information presented in this Disclosure Statement and the Participation Agreement, the terms of the Participation Agreement will control. Terms that are not otherwise defined, are defined in the Participation Agreement.

Congress created this type of tax-advantaged program in 1996 as part of Section 529 of the Internal Revenue Code (the "Code") and such a program sometimes is called a "529 Plan." The Prepaid Tuition Plan offers the advantages of tax deferred growth and tax-free distributions, provided the amounts distributed are used for the payment of education expenses expressly defined as Qualified Higher Education Expenses in Section 529 of the Code ("Qualified Higher Education Expenses") while attending colleges or certain other educational institutions that are eligible under Section 529 of the Code ("Eligible Institution").

Generally, the Prepaid Tuition Plan was designed to help West Virginia families save for the tuition and fees portion of higher education expenses. While it may be used at any Eligible Institution in the United States and certain educational institutions outside the United States, the Prepaid Tuition Plan Benefit value is based on the expected average cost of Tuition and Mandatory Fees at West Virginia public colleges and universities.

Under the terms of this Disclosure Document and the Participation Agreement, the Prepaid Tuition Plan will terminate in June 2022 at which time all Accounts will close and distributions will be paid to remaining Account Owners shortly thereafter.

Program Administration

The West Virginia Legislature enacted the West Virginia College Prepaid Tuition and Savings Program Act on April 12, 2001, as the successor to the West Virginia Tuition Trust Act and is administered by the Board of Trustees. The Board of Trustees consists of eight voting members, namely, the West Virginia State Treasurer (the "Treasurer"), the State Superintendent of Schools, a representative of the Higher Education Policy Commission, a representative of the Council for Community and Technical College Education, two private citizens, and two members representing the interests of private institutions of higher education in West Virginia. The Treasurer is the chairman and presiding officer of the Board of Trustees. You may write to the Board of Trustees at: Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program, c/o West Virginia State Treasurer's Office, 1900 Kanawha Blvd., East Charleston, WV 25305.

The Board of Trustees has established a prepaid tuition plan, through its associated West Virginia Prepaid Tuition Trust Fund ("Trust Fund"). Money you invest in the West Virginia Prepaid Tuition Plan will be

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deposited in the Trust Fund. Each year, the Board of Trustees has the Trust Fund evaluated by an independent actuary. The Board of Trustees or its designee prepares an annual financial statement for the Program, including the Trust Fund, and has it audited by an accounting firm. Annually, a report summarizing the financial condition of the Trust Fund is provided to all current Account Owners. A copy of the most recent audited financial report is available at by selecting "WV Prepaid Tuition Plan Forms and Documents" and "Comprehensive Annual Financial Report".

The Board of Trustees first selected Hartford Life Insurance Company ("Hartford Life") in 2002 to serve as program manager of the Trust Fund. In 2018, the Board of Trustees selected an affiliate of Hartford Life, Hartford Funds Management Company, LLC ("HFMC"), to perform many aspects of administering the Trust Fund (the "Program Manager"). The Hartford Financial Services Group, Inc. ("The Hartford"), HFMC's parent company, has provided insurance and other financial management services for its clients since 1810.

The Program Manager oversees the administrative services that are necessary for the maintenance of the Accounts. The Program Manager maintains the SMART529 Service Center. You may contact them by writing to the SMART529 Service Center at P.O. Box 44070, Jacksonville FL 32231-4070, calling toll-free 1-866-5743542 or visiting the Program website .

HFMC, or an affiliate, will provide the services described in this Disclosure Statement according to the terms and conditions of an agreement between HFMC and the Board of Trustees executed in October 2018 (the "Hartford Management Agreement"). The Hartford Management Agreement expires in 2028. The Board of Trustees and HFMC may from time to time agree to extend the term of the Hartford Management Agreement, and each have the right to terminate the Hartford Management Agreement prior to its expiration date under certain circumstances. If the Hartford Management Agreement were terminated, the Board of Trustees could continue to provide the SMART529 West Virginia Prepaid Tuition Plan on its own or through other third party administrators.

Other college savings plans offered under the Program are not described in this Disclosure Statement, including some savings plans that are available exclusively through investment professionals who receive a commission for selling the plans. If you are interested in learning about these other plans, call the SMART529 Service Center at 1-866-574-3542 or visit .

Opening an Account

The Prepaid Tuition Plan is currently closed to new enrollment.

Qualifying Account Owners

An Account Owner must be a citizen or resident of the United States and must have a Social Security Number. State and local governments, government agencies and not-for-profit organizations may also become Account Owners to help fund scholarship programs. Businesses may also be Account Owners. For the purposes of this Disclosure Statement, "You" means the person who is the Account Owner. As an Account Owner, You can make contributions, name the Designated Beneficiary, authorize and take Distributions, including rolling over the present value of the Prepaid Tuition Plan Benefits in your Account to another 529 Plan account.

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