Minnesota College Savings Plan, St. Paul, added seven investment options, all managed by TIAA-CREF.
The $1.1 billion 529 plan added two risk-based investment options, conservative and aggressive, based on a participant’s time horizon; an S&P 500 index fund; a combined equity plus principal and interest option; and three age-based investment options similar to target-date funds.
The additions bring the plan’s lineup to 19 options, said Mansco Perry III, executive director of the $79.8 billion Minnesota State Board of Investment, St. Paul, which jointly oversees the 529 plan with the Minnesota Office of Higher Education.
The plan also negotiated a 50% reduction in management fees as part of the rehiring earlier this year of TIAA-CREF as service provider under a five-year contract. TIAA-CREF has been the plan’s service provider since it started in 2001.