Minnesota College Savings Plan Reduces Fees on Plan Investment Options

Archive

9/8/2009

 

Media Contact:
Sandy Connolly, Minnesota Office of Higher Education, (651) 259-3902
Renee Hill, TIAA-CREF, 952-830-3113

The Minnesota Office of Higher Education today announced a reduction in fees for the Minnesota College Savings Plan (the "Plan"). These fee reductions demonstrate the Office of Higher Education's commitment to providing a competitive, low-cost plan to help Minnesotans save for college.

Effective, September 1, 2009, the total annual asset-based fee for the Managed Allocation Option was reduced from 0.60 percent to 0.5125 percent. This is the second fee reduction in the last nine months for the Managed Allocation Option, the most popular option. Fees for the 100% Equity Option, the Balanced Option, the 100% Fixed-Income Option and the Money Market Option were reduced from 0.65 percent to a lower fee structure with a total annual asset-based fee ranging from 0.5525 percent to 0.6125 percent, depending on the investment option. There is no annual asset-based fee for the Guaranteed Option. In addition, there are no commissions or annual administrative fees paid on accounts in the Plan.

"We know the sooner parents start thinking about saving for college, the more successful they'll be in meeting the financial demands of a future college education," said David Metzen, director of the Minnesota Office of Higher Education. "Especially in these challenging economic times, we are committed to providing Minnesota families with a choice of investment options at a low cost. With six investment options, parents and grandparents can find an investment option that meets their risk tolerance."

The Minnesota College Savings Plan launched in September 2001. Since then, the Plan has seen impressive growth with more than 51,000 account beneficiaries and close to $640 million in assets as of August 31, 2009.

TIAA-CREF Tuition Financing, Inc. is the program manager for the Minnesota College Savings Plan and is part of the TIAA-CREF group of companies. TIAA-CREF Tuition Financing, Inc. Manages eight state 529 programs with over $5.4 billion dollars in 529 plan assets under management. TIAA-CREF is a national financial services organization and has been a provider of retirement services in the academic, research, medical and cultural fields for more than 90 years.

Information and applications for the Minnesota 529 College Savings Plan can be obtained by calling, toll-free, 1-877-338-4646 or visiting www.mnsaves.org.

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Consider the investment objectives, risks, charges and expenses before investing in the Minnesota College Savings Plan. Please visit www.mnsaves.org for a Disclosure Booklet containing this and other information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your Beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion of the Plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The State of Minnesota, its agencies, the Minnesota State Board of Investment ("Board"), the Minnesota Office of Higher Education ("Office'), TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America ("TIAA") and its affiliates do not insure any Account or guarantee its principal or investment return, except for the guarantee of TIAA-CREF Life Insurance Company to the Board on behalf of the Office under the Funding Agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.

© 2009 TIAA-CREF Tuition Financing, Inc., program manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributes the Minnesota College Savings Plan.