Conn. 529 Plan Reduces Fees

The plan enhancements include:

• Reduced program management fee by 39%–making the CHET direct-sold 529 college savings program one of the lowest-cost plans in the nation.
• Three new investment options: the Conservative Managed  Allocation Option, Active Equity Option, and Index Fixed-Income Option.
• The asset allocations and underlying investments of all investment options have been reviewed and updated as necessary to match current financial market conditions.

The program management fee will now be 20 basis points, bringing the total asset-based fee (program management fee plus cost of underlying funds) to a range of 34 to 98 basis points, depending upon the investment option. The Principal Plus Interest Option will continue to be offered without a program management fee.

Connecticut State Treasurer Denise L. Nappier said in a press release that the enhancements will make it easier for families to save and plan for the growing cost of a college education.