SMART529 College Savings Plans Enhanced, Fees Reduced
October 2007

Led by a significant reduction in administrative fees and charges, a number of enhancements are being implemented in West Virginia’s SMART529 college savings program.

“The overall success of West Virginia’s SMART529 college savings program gave us this opportunity to improve our plans in a number of ways,” State Treasurer John Perdue said, “including lower fees, improved investment options, enhanced customer service and a lower minimum investment amount required to open an account.”

As an example, overall annual fees and expenses for the SMART529 WV Direct plan were reduced on average by 20 percent. Total annual costs for investment options in the WV Direct plan now range from .6 percent to 1.03 percent. Formerly all options’ costs were fixed at 1.16 percent. In addition, the WV Direct plan will be adding a new low-cost investment option based on a popular S&P 500 index fund. This new index option will be made available at an annual cost of .39 percent.

Perdue explained that “surpassing $1 billion dollars in assets let us take advantage of better economies of scale and pass these savings on to our participants.” SMART529 college savings program assets today stand at $1.1 billion.

On average, participants in other versions of the state’s SMART529 plans will experience cost reductions of 11 percent or greater, depending on the plan they are in. Among the charges and fees seeing reductions are the expenses charged for most underlying investments and the administrative fees charged by the Board of Trustees and by the program administrator, Hartford Life Insurance Company.

To make SMART529 even more accessible for West Virginia residents, the minimum amount needed to open an account was cut in half, from $100 to just $50. An enhanced customer service system will now provide several improved services, including a greater ability for participants to manage their accounts through the program’s web site at www.SMART529.com.

As part of the changes, the West Virginia College Prepaid Tuition and Savings Board of Trustees extended its program management agreement with Hartford Life Insurance Company through June 30, 2017. The Board of Trustees had originally selected Hartford Life Insurance Company as SMART529 program manager in 2002 following a competitive bidding process.

“We have had a good working relationship with Hartford Life and this contract extension should provide our participants with program management stability for the next 10 years,” Perdue said.

West Virginians interested in learning more about SMART529 should visit the program web site at www.SMART529.com. Information on SMART529 plans is also available by calling 877-767-8529 or from many banks and investment firms around the state.

SMART529 is a program of the West Virginia College Prepaid Tuition and Savings Program Board of Trustees, State Treasurer John Perdue, chairman.