Fees and Expenses

The following table describes the fees and expenses that you pay if you open and contribute to a particular Investment Option in the Path2College 529 Plan. These fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account. The Board reserves the right to change the current fees, or to impose new or additional fees, expenses, charges or penalties in the future.

Annual Asset-Based Fees
Investment Option Estimated Underlying Mutual Fund Expenses(1) Plan Manager Fee(2)(3) Administrative Fee(4) Total Annual Asset-Based Fees(5)
Managed Allocation Option
Age Band 0-4 Years 0.14% 0.12% 0.06% 0.32%
Age Band 5-8 Years 0.14% 0.12% 0.06% 0.32%
Age Band 9-10 Years 0.15% 0.12% 0.06% 0.33%
Age Band 11-12 Years 0.16% 0.12% 0.06% 0.34%
Age Band 13-14 Years 0.17% 0.12% 0.06% 0.35%
Age Band 15 0.18% 0.12% 0.06% 0.36%
Age Band 16 0.18% 0.12% 0.06% 0.36%
Age Band 17 0.18% 0.12% 0.06% 0.36%
Age Band 18 and Over 0.12% 0.12% 0.06% 0.30%
Aggressive Managed Allocation Option
Age Band 0-4 Years 0.12% 0.12% 0.06% 0.30%
Age Band 5-8 Years 0.13% 0.12% 0.06% 0.31%
Age Band 9-10 Years 0.14% 0.12% 0.06% 0.32%
Age Band 11-12 Years 0.14% 0.12% 0.06% 0.32%
Age Band 13-14 Years 0.15% 0.12% 0.06% 0.33%
Age Band 15 0.15% 0.12% 0.06% 0.33%
Age Band 16 0.16% 0.12% 0.06% 0.34%
Age Band 17 0.15% 0.12% 0.06% 0.33%
Age Band 18 and Over 0.13% 0.12% 0.06% 0.31%
100% Equity Option
  0.07% 0.12% 0.06% 0.25%
Balanced Fund Option
  0.16% 0.12% 0.06% 0.34%
100% Fixed-Income Option
  0.20% 0.12% 0.06% 0.38%
Money Market Option(6)
  0.14% 0.12% 0.06% 0.32%
Guaranteed Option(7)
  None None(7) None None

(1) Although the Plan Manager Fee and the Board Administrative Fee are deducted from an Investment Option, not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Plan Manager Fee and the Board Administrative Fee as these fees reduce the Investment Option's return.

(2) Each Investment Option (with the exception of the Guaranteed Option) pays the Plan Manager a fee at an annual rate of 0.15% of the average daily net assets of the Investment Option. This 0.15% fee applies on total assets in the Plan up to $1.5 billion. The Plan Manager fee will be reduced to 0.12% if and when total assets in the Plan are equal to or greater than $1.5 billion for a period of at least 90 consecutive days, and will be further reduced to 0.10% if and when total assets in the Plan are equal to or greater than $2.0 billion for a period of at least 90 days. The Plan Manager fee may be further reduced if and when total assets in the Plan reach certain levels.

(3) For its services in administering the Plan, each Investment Option (with the exception of the Guaranteed Option) pays to the Board an Administrative Fee at an annual rate of 0.06% of the average daily net assets of the Investment Option.

(4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each mutual fund's most recent prospectus available prior to the date of this Disclosure Booklet weighted according to the Investment Option's allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Option's assets, each Investment Option (other than the Guaranteed Option, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual fund's return.

(5) These figures represent the estimated annual expense ratios of the mutual funds in which the Investment Options invest plus the fees paid to the Plan Manager and to the Board.

(6) Effective July 1, 2011, the Plan Manager and the Board have agreed to voluntarily waive the Money Market Option's Plan Manager Fee and Administrative Fee, respectively, as necessary in an attempt to maintain at least a 0.00% return. The Plan Manager and the Board may discontinue the waiver at any time without notice. Please note that even with the waivers, the net return for the Money Market Option may be negative.

(7) The Guaranteed Option does not pay a fee to the Plan Manager or to the Board. TIAA-CREF Life Insurance Company ("TIAA-CREF Life"), the issuer of the funding agreement in which this Investment Option invests and an affiliate of TFI, makes payments to TFI. TIAA-CREF Life also pays the Board a fee, equal to 0.06% of the average daily net assets held by the Guaranteed Option. These payments, along with many other factors, are considered by the issuer when determining the interest rate(s) credited under the funding agreement.

 

Investment Cost Example

The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This hypothetical example assumes that:

  • You invest $10,000 in a Savings Trust Account for the time periods shown below.
  • Your investment has a 5% compounded return each year, except for the Guaranteed Option, which is assumed to have a 3% compounded return each year.
  • You withdraw the assets from your Savings Trust Account at the end of the specified periods for qualified higher education expenses.
  • Total annual asset-based fees remain the same as shown in the Fee Table above.
  • The example does not consider the impact of any potential state or federal taxes on the redemption.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example
Investment Option Approximate Cost of
$10,000 Investment
   One Year       Three Years       Five Years       Ten Years   
Managed Allocation Option
Age Band 0-4 Years $33 $103 $180 $406
Age Band 5-8 Years $33 $103 $180 $406
Age Band 9-10 Years $34 $106 $186 $419
Age Band 11-12 Years $35 $109 $191 $431
Age Band 13-14 Years $36 $113 $197 $444
Age Band 15 Years $37 $116 $202 $456
Age Band 16 Years $37 $116 $202 $456
Age Band 17 Years $37 $116 $202 $456
Age Band 18 and Over $31 $97 $169 $381
Aggressive Managed Allocation Option
Age Band 0-4 Years $31 $97 $169 $381
Age Band 5-8 Years $32 $100 $174 $394
Age Band 9-10 Years $33 $103 $180 $406
Age Band 11-12 Years $33 $103 $180 $406
Age Band 13-14 Years $34 $106 $186 $419
Age Band 15 Years $34 $106 $186 $419
Age Band 16 Years $35 $109 $191 $431
Age Band 17 Years $34 $106 $186 $419
Age Band 18 and Over $32 $100 $174 $394
100% Equity Option
  $26 $81 $141 $318
Balanced Fund Option
  $35 $109 $191 $431
100% Fixed-Income Option
  $39 $122 $214 $481
Money Market Option
  $33 $103 $180 $406
Guaranteed Option
  $0 $0 $0 $0

The table below indicates that there are no additional fees and expenses deducted from each account/paid directly by the Account Owner.

Additional Fees
  Percent Dollars
Application Fee 0% $0
Cancellation Fee 0% $0
Change in Beneficiary Fee 0% $0
Change in Investment Options 0% $0
Other Charges as applicable 0% $0
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