Oregon College Savings Plan to offer new investment options
New investment choices in the Oregon College Savings Plan will make it easier and smarter for families across the state to save for higher education and job training. The new options, approved by the Oregon 529 Savings Board last week, will be available to investors in September.
The centerpiece of the enhancements is an innovative “College Enrollment Date” fund approach. The strategy will automatically adjust risk exposure multiple times per year to more precisely align the investments with the age of the beneficiary.
The new lineup was designed based on almost two decades of data in the Oregon College Savings Plan, which launched in 2001. The options also will include an FDIC-insured capital preservation fund, a more diversified social choice portfolio, and wider exposure to low-cost Vanguard index funds.
“Higher education and vocational training put Oregonians on the pathway to a better future,” said State Treasurer Tobias Read, the chair of the Oregon 529 Savings Board. “The Oregon College Savings Plan makes it easier for Oregonians to invest in themselves.”
The Oregon 529 Savings Network is administered by the State Treasury and offers two options to save: Oregonians can invest on their own through the Oregon College Savings Plan or via broker-sold mutual funds offered by MFS Investment Management.
The new lineup affects only the popular Oregon College Savings Plan, which had roughly 100,000 beneficiaries and $1.8 billion in assets as of March 31. The changes are part of a shift to new plan administrator, Bank of New York Mellon.
If you don’t have an Oregon College Savings plan account, opening one is quick and easy. The savings can be used for qualified higher education and job training expenses, including tuition and other costs at universities, community colleges and vocational education programs. For more information about investment options and how to enroll, visit OregonCollegeSavings.com or call toll free 866-772-8464.
Contributions to Oregon 529 plans are deductible from Oregon taxable income. For the 2018 tax year, the total deduction on all accounts in the Network is $4,750 for taxpayers filing jointly and $2,375 for all others.
The Oregon Savings Network helps Oregonians invest in themselves and their families. It administers tax-advantaged 529 college savings plans, the Oregon ABLE Savings Plan for individuals with disabilities, and OregonSaves, which makes a retirement savings option available to workers who lack one via an employer. Treasury also protects public assets, improves financial security and saves Oregonians money through investment, banking, retirement savings and debt management programs.
