Oregon College Savings Plan Earns Best-in-Class Rating Upgrade from Morningstar, Inc.

Silver status among national college savings plans marks Oregon College Savings Plan as a strong option for investors

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Oct 29, 2020, 15:03 ET

SALEM, Ore., Oct. 29, 2020 /PRNewswire/ -- After a record-setting year of contributions and continued focus on developing a high-performing investment line-up, the Oregon College Savings Plan was rewarded this week with an upgrade to Silver status among national college savings plans. This is the second upgrade for the Oregon College Savings Plan in as many years.

The Oregon College Savings Plan is among the 14 plans singled out by Morningstar, Inc. as best-in-class and meriting their top-tier Gold or Silver rating, and one of 12 national plans to receive an upgrade this year.

Plans are recognized based on Morningstar's confidence that their investment options will collectively outperform other plans and whether they exhibit a combination of features, including: a robust process for selecting investments, strong oversight from the state and investment manager, and low fees.

"We're gratified that our hard work has paid off with this recognition from Morningstar," said State Treasurer Tobias Read. "But we're not about to take a break. Treasury will continue to be a leader in this space—enhancing savings options and making it easier for all Oregonians to save for their higher education and job training goals."

Contributing to the elevated status this year was the strong investment management team, as well as Morningstar's increased attention to the absolute value of plan fees. Changing plan administrators to Sumday Administration allowed the plan to lower underlying fund fees and offer an innovative program management fee structure; expected to positively impact fees as plan assets grow.

The Oregon College Savings Plan is acknowledged by Morningstar to currently have one of the smoothest glide paths in the industry. The plan's 2018 boost in standing was based on the adoption of this progressive glide path for its target date enrollment portfolios, and the overhaul of its investment lineup.

In addition to enhancing investment options, the plan has focused on reducing barriers to saving for underserved communities. In January, Oregon officially became the first state to offer a refundable tax credit for higher education savings, allowing more families to benefit from saving for college.

The Oregon College Savings Plan is a state-sponsored higher education savings program that comes with special tax advantages and can be opened by just about anyone—parents, family, friends, even future students.

Contact: Kasey Krifka
[email protected]
503-431-7976

SOURCE Oregon College Savings Plan