Michigan Education Savings Program (MESP)

Fees & Expenses

The information below describes the fees and expenses that you would pay if you contribute to a particular investment option in the Michigan Education Savings Program (MESP). These 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.


Age-Based Investment Options

Conservative Age-Based Allocation 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)
Age Band 0‑4 0.05% 0.02% 0.10% 0.17%
Age Band 5‑8 0.05% 0.02% 0.11% 0.18%
Age Band 9‑10 0.05% 0.02% 0.12% 0.19%
Age Band 11‑12 0.05% 0.02% 0.14% 0.21%
Age Band 13‑14 0.05% 0.02% 0.11% 0.18%
Age Band 15 0.05% 0.02% 0.10% 0.17%
Age Band 16 0.05% 0.02% 0.09% 0.16%
Age Band 17 0.05% 0.02% 0.08% 0.15%
Age Band 18+ 0.05% 0.02% 0.08% 0.15%

Moderate Age-Based Allocation 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)
Age Band 0‑4 0.05% 0.02% 0.09% 0.16%
Age Band 5‑8 0.05% 0.02% 0.10% 0.17%
Age Band 9‑10 0.05% 0.02% 0.11% 0.18%
Age Band 11‑12 0.05% 0.02% 0.12% 0.19%
Age Band 13‑14 0.05% 0.02% 0.13% 0.20%
Age Band 15 0.05% 0.02% 0.12% 0.19%
Age Band 16 0.05% 0.02% 0.11% 0.18%
Age Band 17 0.05% 0.02% 0.10% 0.17%
Age Band 18+ 0.05% 0.02% 0.09% 0.16%

Aggressive Age-Based Allocation 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)
Age Band 0‑4 0.05% 0.02% 0.07% 0.14%
Age Band 5‑8 0.05% 0.02% 0.08% 0.15%
Age Band 9‑10 0.05% 0.02% 0.09% 0.16%
Age Band 11‑12 0.05% 0.02% 0.10% 0.17%
Age Band 13‑14 0.05% 0.02% 0.11% 0.18%
Age Band 15 0.05% 0.02% 0.12% 0.19%
Age Band 16 0.05% 0.02% 0.13% 0.20%
Age Band 17 0.05% 0.02% 0.14% 0.21%
Age Band 18+ 0.05% 0.02% 0.11% 0.18%
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(6) None None None None
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)
International Equity Index Option 0.05% 0.02% 0.09% 0.16%
Global Equity Index Option 0.05% 0.02% 0.06% 0.13%
Balanced Option 0.05% 0.02% 0.11% 0.18%
100% Fixed-Income Option 0.05% 0.02% 0.17% 0.24%
Single-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)
U.S. Equity Index 0.05% 0.02% 0.05% 0.12%

(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 0.05% (5 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 0.02% 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 Disclosure Booklet 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 Portfolio, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests, as these expenses reduce such 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 Portfolio 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 0.02% 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
Conservative Managed Allocation Option
Age Band 0‑4 $17 $55 $96 $217
Age Band 5‑8 $18 $58 $102 $230
Age Band 9‑10 $19 $61 $107 $243
Age Band 11‑12 $22 $68 $118 $268
Age Band 13‑14 $18 $58 $102 $230
Age Band 15 $17 $55 $96 $217
Age Band 16 $16 $52 $90 $205
Age Band 17 $15 $48 $85 $192
Age Band 18+ $15 $48 $85 $192
Moderate Managed Allocation Option
Age Band 0‑4 $16 $52 $90 $205
Age Band 5‑8 $17 $55 $96 $217
Age Band 9‑10 $18 $58 $102 $230
Age Band 11‑12 $19 $61 $107 $243
Age Band 13‑14 $21 $64 $113 $255
Age Band 15 $19 $61 $107 $243
Age Band 16 $18 $58 $102 $230
Age Band 17 $17 $55 $96 $217
Age Band 18+ $16 $52 $90 $205
Aggressive Managed Allocation Option
Age Band 0‑4 $14 $45 $79 $179
Age Band 5‑8 $15 $48 $85 $192
Age Band 9‑10 $16 $52 $90 $205
Age Band 11‑12 $17 $55 $96 $217
Age Band 13‑14 $18 $58 $102 $230
Age Band 15 $19 $61 $107 $243
Age Band 16 $21 $64 $113 $255
Age Band 17 $22 $68 $118 $268
Age Band 18+ $18 $58 $102 $230
Guaranteed Investment Option
Principal Plus Interest $0 $0 $0 $0
Multi-Fund Investment Options
International Equity Index Option $16 $52 $90 $205
Global Equity Index Option $13 $42 $73 $167
Balanced Option $18 $58 $102 $230
100% Fixed-Income Option $25 $77 $135 $306
Single Fund Investment Options
U.S. Equity Index Option $12 $39 $68 $154