NU Online News Service, Oct. 17, 5:35 p.m. – Pacific LifeCorp, Newport Beach, Calif., the parent company of Pacific Life Insurance Company, says it intends to enter the Section 529 college savings market by acquiring College Savings Bank, Princeton, N.J.
The 529 program, based on Section 529 of the Internal Revenue Code, offers tax breaks to U.S. residents who contribute to special college savings accounts for their children and other beneficiaries.
College Savings Bank sells the CollegeSure CD certificate of deposit, a CD with a return linked to the inflation rate for college costs. The bank was founded in 1987 and now has $308 million in assets.
Pacific LifeCorp still has to get approval for the deal from state and federal regulators. The value was not disclosed.
Fox-Pitt, Kelton Inc., New York, advised College Savings.