Texas College Savings Plan to change; will reduce management fees

Local News

Courtesy Texas Comptroller of Public Account

AUSTIN (KAMR/KCIT) — Comptroller Glenn Hegar announced that the Texas College Savings Plan is expected to change, with the direct-sold college savings plan lowering fees and enhancing its investment lineup.

According to the Texas Comptroller office, these changes are effective as of Dec. 13:

  • The current Blended and Index Age-based Portfolios will be streamlined into a single set of Age-based Portfolios;
  • The Age-based Option will be expanded from six to 10 Age-based Portfolios to provide a smoother investment glide path;
  • The Static and Individual Fund Portfolios will be reorganized as Risk-based and Individual Asset Class Portfolios; and
  • New portfolios will be added within the Risk-based and Individual Asset Class Portfolios to offer more variety with the investment lineup.

In addition, the Plan is reducing the program “management fee and state administrative fee and using investments with lower estimated underlying investment expenses, resulting in significantly lower estimated total plan fees,” the office stated.

The Plan, according to the Comptroller’s office, has $757 million in total assets, with and average account size of around $20,227 as of Sept. 30, 2021, and is administered by the Texas Prepaid Higher Education Tuition Board, with assistance from the Comptroller’s office.

For more information on the plan, and access to the Transition Guide and updated Plan Description and Savings Trust Agreement, visit TexasCollegeSavings.com.

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