Michigan Education Savings Program (MESP)

Fees & Expenses

The information below describes 529 fees and expenses you would pay if you contribute to a particular investment option in the Michigan Education Savings Program (MESP). These 529 fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account.


Enrollment Year Investment Options
Fees and Expenses
Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option’s Underlying Investment(4) Total Annual Asset-Based Fees(5)
2038 / 2039 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2036 / 2037 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2034 / 2035 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2032 / 2033 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2030 / 2031 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2028 / 2029 Enrollment Option 0.02% 0.025% 0.06% 0.105%
2026 / 2027 Enrollment Option 0.02% 0.025% 0.05% 0.095%
2024 / 2025 Enrollment Option 0.02% 0.025% 0.05% 0.095%
2022 / 2023 Enrollment Option 0.02% 0.025% 0.03% 0.075%
In School Option 0.02% 0.025% 0.02% 0.065%
Multi-Fund Investment Options
Fees and Expenses
Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option’s Underlying Investment(4) Total Annual Asset-Based Fees(5)
Aggressive Allocation Option 0.02% 0.025% 0.06% 0.105%
Moderate Allocation Option 0.02% 0.025% 0.06% 0.105%
Conservative Allocation Option 0.02% 0.025% 0.04% 0.085%
International Equity Index Option 0.02% 0.025% 0.08% 0.125%
Global Equity Index Option 0.02% 0.025% 0.06% 0.105%
100% Fixed-Income Option 0.02% 0.025% 0.04% 0.085%
Single Fund Investment Option
Fees and Expenses
Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option’s Underlying Investment(4) Total Annual Asset-Based Fees(5)
U.S. Equity Index 0.02% 0.025% 0.05% 0.095%
Guaranteed Investment Option
Fees and Expenses
Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option’s Underlying Investment(4) Total Annual Asset-Based Fees(5)
Principal Plus Interest Option(6) None None None None

(1) Although the Program Manager Fee and the State Administrative Fee are deducted from an Investment Option, not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Program Manager Fee and the State Administrative Fee, as these fees reduce the Investment Option’s return.

(2) Each Investment Option (with the exception of the Principal Plus Interest Option) pays the Program Manager a fee at an annual rate of 0.02% (2 basis points) of the average daily net assets of the Investment Option.

(3) Each Investment Option (with the exception of the Principal Plus Interest Option) pays to the Michigan Department of Treasury a State Administrative Fee at an annual rate of 0.025% of the average daily net assets of the Investment Option. The State Administrative Fee is used to maintain or enhance Michigan’s qualified tuition programs.

(4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each mutual fund's most recent prospectus available prior to the date of this Program Description and weighted according to the Investment Option’s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Option’s assets, each Investment Option (other than the Principal Plus Interest Option, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests. These expenses reduce the mutual fund's return.

(5) These figures represent the estimated weighted annual expense ratios of the mutual funds in which an Investment Option invests plus Program Manager Fee and the State Administrative Fee.

(6) The Principal Plus Interest Option does not pay a fee to the Program Manager or to the Michigan Department of Treasury. TIAA-CREF Life Insurance Company ("TIAA-CREF Life"), the issuer of the funding agreement in which this Investment Option invests and an affiliate of TFI, makes payments to TFI as Program Manager. TIAA-CREF Life also pays the Michigan Department of Treasury a fee, equal to 0.025% of the average daily net assets held by the Principal Plus Interest Option. These payments, among many other factors, are considered by the issuer when determining the interest rate credited under the funding agreement.

The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This hypothetical example assumes that:

  • You invest $10,000 in an Investment Option for the time periods shown below.
  • Your investment has a 5% compounded return each year.
  • You withdraw the assets from your Investment Option at the end of the specified periods for Qualified Higher Education Expenses.
  • Total annual asset-based fees remain the same as shown in the Fee Table above.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example
Investment Options Approximate Cost of $10,000 Investment
  1 Year 3 Years 5 Years 10 Years
Enrollment Year Investment Options
2038/2039 Enrollment Option $11 $34 $59 $135
2036/2037 Enrollment Option $11 $34 $59 $135
2034/2035 Enrollment Option $11 $34 $59 $135
2032/2033 Enrollment Option $11 $34 $59 $135
2030/2031 Enrollment Option $11 $34 $59 $135
2028/2029 Enrollment Option $11 $34 $59 $135
2026/2027 Enrollment Option $10 $31 $54 $122
2024/2025 Enrollment Option $10 $31 $54 $122
2022/2023 Enrollment Option $8 $24 $42 $96
In School Option $7 $21 $37 $84
Multi-Fund Investment Options
Aggressive Allocation Option $11 $34 $59 $135
Moderate Allocation Option $11 $34 $59 $135
Conservative Allocation Option $9 $27 $48 $109
International Equity Index Option $13 $40 $71 $160
Global Equity Index Option $11 $34 $59 $135
100% Fixed-Income Option $9 $27 $48 $109
Single Fund Investment Option
U.S. Equity Index Option $10 $31 $54 $122
Guaranteed Investment Option
Principal Plus Interest N/A N/A N/A N/A

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