Fees & Expenses

The information below describes the fees and expenses that you would pay if you contributed 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 Program in connection with opening or maintaining an account.

Investment Option(6) Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option's Underlying Investments(4) Total Annual Asset-Based Fees(5)
2040/2041 Enrollment Option 0.02% 0.025% 0.06% 0.105%
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% 0.05% 0.095%
2028/2029 Enrollment Option 0.02% 0.025% 0.05% 0.095%
2026/2027 Enrollment Option 0.02% 0.025% 0.04% 0.085%
2024/2025 Enrollment Option 0.02% 0.025% 0.03% 0.075%
In School Option 0.02% 0.025% 0.02% 0.065%
  1. 1Although the Program Manager Fee and the State Administrative Fee are deducted from an Investment Option (with the exception of the Principal Plus Interest Option), not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Program Manager Fee and the Administrative Fee as these fees reduce the Investment Option’s return.↩
  2. 2Each 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. 3Each 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. 4The percentages set forth in this column are based on the expense ratios of the funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each fund’s most recent prospectus available prior to the printing of this Program Description weighted according to the Investment Option’s allocation among the 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 funds) indirectly bears its pro rata share of the expenses of the funds in which it invests as these expenses reduce each such fund’s return.↩
  5. 5These figures represent the estimated weighted annual expense ratios of the funds in which the Investment Options invest plus the Program Manager Fee and the State Administrative Fee.↩
  6. 6These Options invest a portion of their assets in ETFs. Because ETFs are traded on a securities exchange, Options that invest in ETFs will pay transaction costs when buying and selling shares of an ETF. These transaction costs are not listed in the table.↩

Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option's Underlying Investments(4) Total Annual Asset-Based Fees(5)
Aggressive Allocation Option(6) 0.02% 0.025% 0.06% 0.105%
Moderate Allocation Option(6) 0.02% 0.025% 0.05% 0.095%
Conservative Allocation Option(6) 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(6) 0.02% 0.025% 0.04% 0.085%
  1. 1Although the Program Manager Fee and the State Administrative Fee are deducted from an Investment Option (with the exception of the Principal Plus Interest Option), not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Program Manager Fee and the Administrative Fee as these fees reduce the Investment Option’s return.↩
  2. 2Each 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. 3Each 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. 4The percentages set forth in this column are based on the expense ratios of the funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each fund’s most recent prospectus available prior to the printing of this Program Description weighted according to the Investment Option’s allocation among the 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 funds) indirectly bears its pro rata share of the expenses of the funds in which it invests as these expenses reduce each such fund’s return.↩
  5. 5These figures represent the estimated weighted annual expense ratios of the funds in which the Investment Options invest plus the Program Manager Fee and the State Administrative Fee.↩
  6. 6These Options invest a portion of their assets in ETFs. Because ETFs are traded on a securities exchange, Options that invest in ETFs will pay transaction costs when buying and selling shares of an ETF. These transaction costs are not listed in the table.↩

Investment Option Program Manager Fee(1)(2) State Administrative Fee(1)(3) Estimated Expenses of an Investment Option's Underlying Investments(4) Total Annual Asset-Based Fees(5)
U.S. Equity Index Option 0.02% 0.025% 0.05% 0.095%
Large Cap Growth Equity Index Option 0.02% 0.025% 0.04% 0.085%
Large Cap Value Equity Index Option 0.02% 0.025% 0.04% 0.085%
Small/Mid Cap Equity Index Option 0.02% 0.025% 0.06% 0.105%
Emerging Markets Equity Index Option 0.02% 0.025% 0.14% 0.185%
  1. 1Although the Program Manager Fee and the State Administrative Fee are deducted from an Investment Option (with the exception of the Principal Plus Interest Option), not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Program Manager Fee and the Administrative Fee as these fees reduce the Investment Option’s return.↩
  2. 2Each 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. 3Each 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. 4The percentages set forth in this column are based on the expense ratios of the funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each fund’s most recent prospectus available prior to the printing of this Program Description weighted according to the Investment Option’s allocation among the 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 funds) indirectly bears its pro rata share of the expenses of the funds in which it invests as these expenses reduce each such fund’s return.↩
  5. 5These figures represent the estimated weighted annual expense ratios of the funds in which the Investment Options invest plus the Program Manager Fee and the State Administrative Fee.↩

Investment Option Program Manager Fee State Administrative Fee Estimated Expenses of an Investment Option's Underlying Investments Total Annual Asset-Based Fees
Principal Plus Interest Option(1) N/A N/A N/A N/A
  1. 1The 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, along with many other factors, are considered by the issuer when determining the interest rate(s) credited under the funding agreement.↩