Utah's educational savings plan, called my529, will add the PIMCO Interest Income Fund, a stable value fund, to all predetermined age-based investment options, confirmed Richard Ellis, spokesman for the Salt Lake City-based $12.8 billion 529 plan.
This is the only new fund being introduced to the lineup.
The change goes into effect Aug. 17 and is automatic. It will make up between 4% and 26% of a participant's investments depending on the age and risk level of a selected portfolio.
No action will be required by participants with predetermined age-based accounts. Participants with customized age-based and customized static accounts who decide to invest in the Pacific Investment Management Co. fund can determine the allocation percentage. A newsletter issued by the plan said that adding the fund to a customized investment option will count as one of two allowable investment option changes in a calendar year.
Predetermined static investment options will not be affected by the change.