Path2College 529 Plan

Fees & Expenses

The information below describes the fees and expenses that you would pay if you 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.


Age-Based Investment Options
Managed Allocation Option
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(1) Plan Manager Fee(2)(3) Administrative Fee(4) Total Annual Asset-Based Fees(5)
Age Band 0‑4 0.10% 0.08% 0.06% 0.24%
Age Band 5‑8 0.11% 0.08% 0.06% 0.25%
Age Band 9‑10 0.12% 0.08% 0.06% 0.26%
Age Band 11‑12 0.12% 0.08% 0.06% 0.26%
Age Band 13‑14 0.12% 0.08% 0.06% 0.26%
Age Band 15 0.11% 0.08% 0.06% 0.25%
Age Band 16 0.10% 0.08% 0.06% 0.24%
Age Band 17 0.08% 0.08% 0.06% 0.22%
Age Band 18+ 0.06% 0.08% 0.06% 0.20%

Aggressive Managed Allocation Option
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(1) Plan Manager Fee(2)(3) Administrative Fee(4) Total Annual Asset-Based Fees(5)
Age Band 0‑4 0.08% 0.08% 0.06% 0.22%
Age Band 5‑8 0.09% 0.08% 0.06% 0.23%
Age Band 9‑10 0.10% 0.08% 0.06% 0.24%
Age Band 11‑12 0.11% 0.08% 0.06% 0.25%
Age Band 13‑14 0.12% 0.08% 0.06% 0.26%
Age Band 15 0.11% 0.08% 0.06% 0.25%
Age Band 16 0.10% 0.08% 0.06% 0.24%
Age Band 17 0.09% 0.08% 0.06% 0.23%
Age Band 18+ 0.08% 0.08% 0.06% 0.22%
Guaranteed Investment Option
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(3) Program Manager Fee(1)(2) State Fee Total Annual Asset-Based Fees(4)
Guaranteed Option(5) None None None None

 

Multi-Fund Investment Options
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(1) Plan Manager Fee(2)(3) Administrative Fee(4) Total Annual Asset-Based Fees(5)
Balanced Option 0.14% 0.08% 0.06% 0.28%
100% Fixed Income Option 0.19% 0.08% 0.06% 0.33%

 

Single-Fund Investment Options
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(1) Plan Manager Fee(2)(3) Administrative Fee(4) Total Annual Asset-Based Fees(5)
100% Equity 0.05% 0.08% 0.06% 0.19%
Money Market(6) 0.14% 0.08% 0.06% 0.28%

(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 0.08% of the average daily net assets of the Investment Option. This 0.08% fee applies on total assets in the Plan up to $3.0 billion. The Plan Manager fee will be reduced to 0.07% at the end of the month if and when total assets in the Plan are equal to or greater than $3.0 billion and will be further reduced to 0.06% at the end of the month if and when total assets in the Plan are equal to or greater than $4.0 billion. 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.

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
  1 Year 3 Years 5 Years 10 Years
Managed Allocation Option
Age Band 0-4 $25 $77 $135 $306
Age Band 5-8 $26 $81 $141 $318
Age Band 9-10 $27 $84 $146 $331
Age Band 11-12 $27 $84 $146 $331
Age Band 13-14 $27 $84 $146 $331
Age Band 15 $26 $81 $141 $318
Age Band 16 $25 $77 $135 $306
Age Band 17 $23 $71 $124 $281
Age Band 18+ $21 $64 $113 $255
Aggressive Managed Allocation Option
Age Band 0-4 $23 $71 $124 $281
Age Band 5-8 $24 $74 $130 $293
Age Band 9-10 $25 $77 $135 $306
Age Band 11-12 $26 $81 $141 $318
Age Band 13-14 $27 $84 $146 $331
Age Band 15 $26 $81 $141 $318
Age Band 16 $25 $77 $135 $306
Age Band 17 $24 $74 $130 $293
Age Band 18+ $23 $71 $124 $281
Guaranteed Investment Option
Guaranteed Option $0 $0 $0 $0
Multi-Fund Investment Options
Balanced Option $29 $90 $158 $356
100% Fixed Income Option $34 $106 $186 $419
Single-Fund Investment Options
100% Equity $19 $61 $107 $243
Money Market $29 $90 $158 $356