The fees for the Oklahoma 529 College Savings Plan are getting lower, State Treasurer Randy McDaniel said.

Effective since February, the management fee for Oklahoma¹s official college saving plan is being reduced by more than 16 percent. The new management fee will be 0.25 percent on account balances, down from 0.3 percent. The fee reduction could save OCSP account owners a combined total of approximately $500,000 per year.

McDaniel, chair of the plan¹s board of trustees, said the fee reduction is only one of many changes that are on the way for the OCSP¹s almost 31,000 account owners.

“The state¹s 529 plan is already the best option for Oklahoma families to save for educational costs, but we are making it even better,” said McDaniel. “In the coming months, we will be announcing several additional improvements that include enhanced investment options and upgraded online account management.”

McDaniel attributed the changes to the outgrowth of a recently completed competition for management of the $1 billion savings plan for the next five years.

Several companies offered proposals for administration of the plan.

“The proposals were very competitive,” said McDaniel. “In the end, the best proposal was made by TIAA, which has managed the plan since its inception in 2000.”

The Oklahoma 529 College Savings Plan is the only direct-sold 529 plan with an Oklahoma income tax deduction for contributions of up to $20,000 per year. Contributions made by April 15 of this year can be deducted from 2019 state tax returns.

The plan has more than 57,000 active accounts. Since inception, more than $618 million has been used from the plan to pay for educational expenses of almost 28,000 students.