Oregon College Savings Plan Reduces Fees and Cements Best-in-Class Rating from Morningstar, Inc.

News provided by

Nov 29, 2022, 05:57 ET

The Oregon College Savings Plan remains a strong option for investors with a silver status among national college savings plans and newly reduced fees

SALEM, Ore., Nov. 29, 2022 /PRNewswire/ -- Driven by a record-setting year of contributions and a strong fiscal position, the Oregon College Savings Plan (OCSP) has reduced its administrative fee by 20 percent. With the lower fee (from 0.25 to 0.20), Oregon families saving for college through OCSP can now expect to see a greater percentage of their contributions going toward future higher education expenses.

Lower fees and a standout target enrollment investment series were key factors in solidifying OCSP's silver standing in Morningstar Inc.'s 2022 rankings of national college savings plans. Of the 14 plans singled out by Morningstar this year with a top-tier rating, OCSP is among the 12 plans ranked as silver. The continued focus on developing a high-quality and high-performing plan for savers, in combination with steady industry recognition, demonstrates that OCSP is delivering for its participants.

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

"Ensuring that higher education is accessible and affordable for all families remains our top priority. Lowering fees is an important step in making it easier for all Oregonians to be able to save for their higher education," said State Treasurer Tobias Read. "We are encouraged by this recognition from Morningstar, which acknowledges our work to enhance our savings options and lead in this space."

This latest fee reduction comes on the heels of an earlier decrease made possible by the transition to a new plan administrator in 2018. The move to Sumday Administration, now doing business as Vestwell State Savings, allowed OCSP to lower underlying fund fees for savers and offer an innovative program management fee structure.

As expected, this new fee structure, and the growth in assets under management, enabled this further fee reduction in 2022. Current OCSP savers now pay a low annual administrative fee of 0.20 percent of their total savings, and an annual investment fee (ranging from 0.02 percent to 0.45 percent of their total savings) based on the investment portfolios they've selected.

OCSP is acknowledged by Morningstar to have one of the most progressive investment structures in the industry, with a set of target investment options that allow savers to tailor investments and risk exposure based on the year the beneficiary is expected to enroll in higher education. This feature responds to the reality that not everybody moves directly to post-secondary education after high school.

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.

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

SOURCE Oregon College Savings Plan