The Illinois state treasurers office, Springfield, selected Oppenheimer Funds to administer the $2.1 billion Bright Start College Savings Plan, said Scott Burnham, a spokesman with the treasurers office. The 529 plan is now being administered by Legg Mason, whose contract expires March 27, Mr. Burnham said. A news release from the treasurers office said Oppenheimer will provide lower fees and better investment options to gain a better rate of return and overhaul the 529 plan that has come under criticism for its underperforming funds.
Maria Rosati, a spokeswoman with Legg Mason, said that continuing to provide investment services at costs lower than the proposed bid would not have made economic sense for Legg Mason.
An RFP was issued in May. No consultant assisted.