How will my position in the TIAA PPIO be transitioned to the Stable Value Portfolio?
As noted in your CHET 529 Plan Fact Kit, your position in the TIAA-CREF Life Principal Plus Interest Option ("TIAA-CREF PPIO" or "TIAA PPIO") will gradually transfer to the CT Stable Value Portfolio, a new investment option in the CHET 529 Plan, selected by the CHET Trustee to receive the PPIO assets, over a five-year period.
On May 2, 2022, approximately 20% of your position in the TIAA-CREF PPIO transitioned to the CT Stable Value Portfolio.
On May 2, 2023, approximately 25% of your remaining position in the TIAA-CREF PPIO will transition to the CT STable Value Portfolio.
When will my assets in the TIAA Principal Plus Interest Option (PPIO) product move to Fidelity?
Only the servicing of the TIAA PPIO transitioned to Fidelity on February 8, 2021. In accordance with the contractual arrangement (Funding Agreement) between the Connecticut Higher Education Trust (CHET) and TIAA-CREF Life Insurance Company (TIAA Life).
Can I continue to contribute to the TIAA PPIO product?
As of February 8, 2021, the TIAA PPIO was closed to new investors and new investments from existing CHET Plan account owners. Automatic contributions previously made to the TIAA PPIO are being redirected to the CT Stable Value Portfolio. Reinvestments previously made to the TIAA PPIO position are also being directed to the CT Stable Value Portfolio.
Per IRS rules, you can change your current 529 plan investments without incurring taxes up to 2 times per calendar year and upon a change of beneficiary on the account. Learn how to change your investments
Please note that the Money Market Portfolio was closed on May 2, 2022 and any standing investment instructions transitioned to the new Stable Value Portfolio.
CHET 529 Participants invested in the Stable Value Portfolio may not move or exchange money from the Stable Value Portfolio to the Bank Deposit Portfolio. Please carefully review your Portfolio selection before investing.
Can I redeem the TIAA PPIO product?
Yes, investors in the TIAA PPIO can redeem or trade at any time at their discretion. Per IRS rules, you can change your current 529 plan investments without incurring taxes up to 2 times per calendar year and upon a change of beneficiary on the account. Learn how to change your investments
How can I get information on my TIAA PPIO position?
To get more information on your TIAA PPIO position, view details on the performance page.
What is the effective annual interest rate of the TIAA PPIO product?
Effective July 1, 2023, positions under the Funding Agreement, which is a contractual arrangement between CHET and TIAA-CREF Life Insurance Company (TIAA Life), for the TIAA-CREF Life Principal Plus Interest Option have an effective annual interest rate of 2.35% and pursuant to the the Funding Agreement, are guaranteed to earn this rate through June 30, 2024, subject to the claims-paying ability of TIAA-CREF Life. The terms and conditions of the TIAA PPIO product are governed by the Funding Agreement.
Will the effective annual interest rate of the TIAA PPIO product continue to change annually?
Pursuant to the terms of the Funding Agreement, the crediting rate will continue to update annually on July 1.
What other investment options are available to me at Fidelity?
To learn more about the investment options in the CHET 529 Plan managed by Fidelity, visit the investment options page.
The Connecticut Higher Education Trust (CHET) 529 College Savings Plan - Direct Plan is offered by the Treasurer of the state of Connecticut and managed by Fidelity Investments. If you or the designated beneficiary is not a Connecticut resident, you may want to consider, before investing, whether your state or the beneficiary's home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors.
Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.
Please carefully consider the plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit or view one online. Read it carefully before you invest or send money.
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