Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Administration August 20, 2009
NJ 529 Plan Lowers Fees, Adds More Conservative Funds
August 20, 2009 (PLANSPONSOR.com) - New Jersey's
Higher Education Student Assistance Authority reached an
agreement to reduce administrative fees and offer more
conservative investments for the NJBEST 529 college savings
plan.
Reported by Rebecca Moore
The Newark Star-Ledger reports that by December, the program’s annual management fee, which pays for the services of Franklin Templeton Investments, will be reduced by 50%, saving $800,000, the authority said. In addition, the plan will offer two new age-based investment options: Conservative Age-Based Portfolios and Moderate Age-Based Portfolios.
The existing age-based portfolios will be renamed Growth Age-Based Portfolios, according to the news report.
Franklin Templeton agreed to absorb nearly $200,000 in costs to implement the changes.
The plan has been criticized by Morningstar for charging high fees and for having age-based portfolios that are too risky for students close to attending college (see Ohio 529 Plans Earn Best and Worst Ranking ).