Minnesota College Savings 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 Minnesota College Savings 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
Fees and Expenses
Investment Option Plan Manager
Fee(1)(2)
Minnesota Administrative
Fee(1)(4)
Estimated Expenses of
an Investment Option's
Underlying Investments(3)
Total Annual
Asset-Based Fees(5)
Age Band 0‑4 Years 0.15% 0.0065% 0.12% 0.2765%
Age Band 5‑8 Years 0.15% 0.0065% 0.13% 0.2865%
Age Band 9‑10 Years 0.15% 0.0065% 0.14% 0.2965%
Age Band 11‑12 Years 0.15% 0.0065% 0.13% 0.2865%
Age Band 13‑14 Years 0.15% 0.0065% 0.13% 0.2865%
Age Band 15 Years 0.15% 0.0065% 0.11% 0.2665%
Age Band 16 Years 0.15% 0.0065% 0.10% 0.2565%
Age Band 17 Years 0.15% 0.0065% 0.08% 0.2365%
Age Band 18 Years and over 0.15% 0.0065% 0.07% 0.2265%
Guaranteed Investment Option
Fees and Expenses
Investment Option Plan Manager
Fee(1)(2)
Minnesota Administrative
Fee(1)(4)
Estimated Expenses of
an Investment Option's
Underlying Investments(3)
Total Annual
Asset-Based Fees(5)
Principal Plus Interest Option(7) None None None None

 

Multi-Fund Investment Options
Fees and Expenses
Investment Option Plan Manager
Fee(1)(2)
Minnesota Administrative
Fee(1)(4)
Estimated Expenses of
an Investment Option's
Underlying Investments(3)
Total Annual
Asset-Based Fees(5)
Aggressive Allocation Option 0.15% 0.0065% 0.12% 0.2765%
Moderate Allocation Option 0.15% 0.0065% 0.14% 0.2965%
Conservative Allocation Option 0.15% 0.0065% 0.11% 0.2665%
International Equity Index Option 0.15% 0.0065% 0.09% 0.2465%
U.S. and International Equity Option 0.15% 0.0065% 0.11% 0.2665%
Equity and Interest Accumulation Option 0.15% 0.0065% 0.03% 0.1865%
100% Fixed-Income Option 0.15% 0.0065% 0.17% 0.3265%

 

Single-Fund Investment Options
Fees and Expenses
Investment Option Plan Manager
Fee(1)(2)
Minnesota Administrative
Fee(1)(4)
Estimated Expenses of
an Investment Option's
Underlying Investments(3)
Total Annual
Asset-Based Fees(5)
U.S. Large Cap Equity Option 0.15% 0.0065% 0.06% 0.2165%
Money Market Option(6) 0.15% 0.0065% 0.14% 0.2965%

 

(1) Although the Plan Manager Fee and the Minnesota 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 Minnesota Administrative Fee as these fees reduce the Investment Option’s return.

(2) Each Investment Option (with the exception of the Principal Plus Interest Option) pays the Plan Manager a fee at an annual rate of 0.15% (15 basis points) of the average daily net assets held by that Investment Option. The Plan Manager Fee applies to the total market value of assets in the Plan up to $1.35 billion. The Plan Manager Fee will be reduced to 0.14% (14 basis points) once the total market value of assets in the Plan first reaches $1.35 billion and will be reduced to 0.13% (13 basis points) once the total market value of assets in the Plan first reaches $1.5 billion.

(3) 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 and are 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 indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual funds’ return.

(4) Each Investment Option (with the exception of the Principal Plus Interest Option) pays to the State of Minnesota a fee equal to 0.0065% of the average daily net assets held by that Investment Option to pay for expenses related to the administration of the Plan.

(5) These figures represent the estimated weighted annual expense ratios of the mutual funds in which the Investment Options invest plus the fees paid to the Plan Manager and to the State of Minnesota.

(6) Effective July 1, 2011, the Plan Manager and the Office have agreed to voluntarily waive the Money Market Option’s Plan Manager Fee and Minnesota Administrative Fee, respectively, as necessary in an attempt to maintain at least a 0.00% return for this Investment Option. The Plan Manager, the Office or the Board may discontinue these waivers at any time without notice. Please note that after the waivers, the net return for the Money Market Option may still be negative.

(7) The Principal Plus Interest Option does not pay a Plan Manager Fee. 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, as Plan Manager. This payment, among many other factors, is 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 example assumes that:

  • You invest $10,000 in an investment portfolio for the time periods shown below.
  • Your investment has a 5% compounded return each year.
  • You withdraw your entire investment from the Investment Option 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.

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
Age Band 0‑4 Years $28 $89 $156 $352
Age Band 5‑8 Years $29 $92 $161 $364
Age Band 9‑10 Years $29 $92 $161 $364
Age Band 11‑12 Years $29 $92 $161 $364
Age Band 13‑14 Years $29 $92 $161 $364
Age Band 15 Years $27 $86 $150 $339
Age Band 16 Years $26 $83 $145 $327
Age Band 17 Years $24 $76 $133 $301
Age Band 18+ Years $23 $73 $128 $289
Guaranteed Investment Option
Principal Plus Interest Option $0 $0 $0 $0
Multi-Fund Investment Options
Aggressive Allocation Option $28 $89 $156 $352
Moderate Allocation Option $29 $92 $161 $364
Conservative Allocation Option $27 $86 $150 $339
International Equity Index Option $25 $79 $139 $314
U.S. and International Equity Option $27 $86 $150 $339
Equity and Interest Accumulation Option $19 $60 $105 $238
100% Fixed-Income Option $33 $105 $184 $414
Single-Fund Investment Options
U.S. Large Cap Equity $22 $70 $122 $276
Money Market Option(1) $30 $96 $167 $377

(1) The amounts in this table do not reflect the fee waivers discussed in footnote (6) to the Fee Table. If those waivers were reflected, the amounts shown in the table would be lower.