Connecticut Treasurer Nappier Announces CHET Enhancements

HARTFORD, Conn., Dec. 6, 2010 /PRNewswire/ -- Connecticut State Treasurer Denise L. Nappier today unveiled CHET direct-sold 529 college savings plan enhancements that will make it even easier for families to save and plan for the growing cost of a college education.

The plan enhancements include:

• Reduced program management fee by 39 percent–making the CHET direct-sold 529 college savings program one of the lowest-cost plans in the nation.

• Three new investment options: the Conservative Managed  Allocation Option, Active Equity Option and Index Fixed-Income Option.

• The asset allocations and underlying investments of all investment options have been reviewed and updated as necessary to match current financial market conditions

"We believe these new enhancements will allow Connecticut residents to better plan, invest and save for their children's college education," said Connecticut State Treasurer Denise L. Nappier. "With one of the lowest-cost plans in the nation, Connecticut's direct-sold 529 college savings plan allows parents to focus on contributing to their college savings plan rather than paying fees. More of the contributions can go toward college savings objectives."

The program management fee will now be 20 basis points, bringing the total asset-based fee (program management fee plus cost of underlying funds) to a range of 34 to 98 basis points, depending upon the Investment Option. This means that for every $1,000 invested, fees will range from just $3.40 to $9.80 per year. The Principal Plus Interest Option will continue to be offered without a program management fee.

CHET continues to offer Connecticut taxpayers the opportunity to take advantage of the state income tax deduction on 529 plan contributions made before December 31, 2010.  

The CHET direct-sold 529 college savings plan was established in 1997 and has grown to $1.38 billion in assets with more than 96,000 accounts (as of October 31, 2010).  Connecticut Treasurer Denise L. Nappier serves as Trustee of CHET and has the statutory responsibility to manage the program.  For additional information, to obtain a Disclosure Booklet or to enroll on line, please visit www.aboutchet.com or call 1-888-799-2438.  The Disclosure Booklet contains information about investment objectives, risks, charges, expenses and tax considerations.  Please read this carefully.

SOURCE Connecticut State Treasurer's Office