State Sponsored Savings Plans

The Aggressive Allocation Option seeks long-term capital appreciation and does not focus on income generation. Its target allocation is 90% equity and 10% fixed income.

The Moderately Aggressive Allocation Option long-term capital appreciation with relatively less focus on income generation. Its target allocation is 75% equity and 25% fixed income. 

The Growth Allocation Option seeks to provide capital appreciation and low current income. It target allocation is 60% equity and 40% fixed income.

The Moderate Allocation Option seeks capital appreciation and, secondarily, moderate current income. Its target allocation is 45% equity and 55% fixed income.

The Moderately Conservative Allocation Option seeks to provide moderate current income and low capital appreciation. Its target allocation is 30% equity, 45% fixed income, and 25% cash.

The Conservative Allocation Option seeks substantial capital preservation while providing current income and limited opportunity for capital appreciation. Its target allocation is 10% equity, 30% fixed income, and 60% cash.

The Checking Account Option invests 100% of its assets in an FDIC-insured checking account. 

The Static Investment Options provide investors with a broad selection of asset classes to create their own portfolios based on their desired risk and return profile. The Static Options are:

• U.S. Large Cap Equity Option: Seeks to provide a favorable long-term total return mainly from capital appreciation. Assets are invested in an underlying S&P 500 Index fund.
   
• Large Cap Responsible Equity Option: Seeks to provide a favorable long-term total return mainly from capital appreciation. The underlying fund's evaluation process favors companies with leadership in Environmental, Social, and Governance (ESG) performance relative to their peers. The investment process starts with an investable universe of companies from the S&P 500 Index that meet defined ESG performance criteria. The process incorporates a company’s exposure to ESG-related issues and its participation in certain business activities. The process also incorporates a carbon overlay that favors companies reducing carbon emissions in their operations and excludes companies owning fossil fuel reserves.
   
• International Equity Index Option: Seeks to provide a favorable long-term total return, mainly through capital appreciation. Approximately 80% of the underlying fund is allocated to equity securities of companies located in developed markets and 20% is allocated to equity securities of companies located in emerging markets.
   
• U.S. and International Equity Option: Seeks to provide a favorable long-term total return, mainly from capital appreciation, by allocating primarily to a blend of domestic and foreign equities and real estate-related securities. Approximately 60% of the underlying fund is allocated to U.S. equity securities, 24% to international developed markets equities, 6% to emerging markets equities, and 10% to real estate-related securities.
   
• 100% Fixed Income Option: Seeks to provide preservation of capital along with a moderate rate of return through a diversified mix of fixed income investments. Approximately 70% of the underlying fund is allocated to public, investment-grade, taxable fixed income securities denominated in U.S. dollars, 20% to inflation-linked bonds, and 10% to high yield bonds.
   
• Money Market Option: Seeks to provide current income consistent with preserving capital. The underlying fund invests at least 99.5% of its total assets in cash, short-term U.S. government securities, and/or repurchase agreements that are collateralized fully by cash or U.S. government securities.
   
• Principal Plus Interest Option: Seeks to preserve capital and provide a stable return. The contributions to this investment option are invested in a funding agreement issued by TIAA-CREF Life Insurance Company, an affiliate of TFI. The funding agreement provides for safety of principal plus a fixed rate of interest.

The Risk-Based Investment Options present a fixed risk level and stay consistent as the beneficiary ages. There are three distinct risk-based investment options: Aggressive, Moderate, and Conservative.

• Aggressive Allocation Option: Seeks to generate a favorable long-term return by investing in underlying funds that invest primarily in equity securities and, to a lesser extent, fixed income securities. Approximately 48% of this investment option is allocated to U.S. equity securities; 19% to developed international equities; 5% to emerging markets equities; 8% real estate securities; 14% to public, investment-grade, taxable fixed income securities denominated in U.S. dollars; 4% to inflation-linked bonds; and 2% to high yield bonds
   
• Moderate Allocation Option: Seeks to provide moderate growth by investing in a balanced mix of domestic and foreign equity securities, fixed income, and real estate-related securities. Approximately 36% of this investment option is allocated to U.S. equity securities; 14% to developed international equities; 4% to emerging markets equities; 6% to real estate securities; 28% to public, investment-grade, taxable fixed income securities denominated in U.S. dollars; 8% to inflation-linked bonds; and 4% to high yield bonds.
   
• Conservative Allocation Option: Seeks to provide a conservative-to-moderate total return by investing primarily in debt securities and, to a lesser extent, in equity securities. This investment option also invests in a money market mutual fund to provide capital preservation. Approximately 18% of this investment option is allocated to U.S. equity securities; 7% to developed international equities; 2% to emerging markets equities; 3% real estate securities; 32% to public, investment-grade, taxable fixed income securities denominated in U.S. dollars; 9% to inflation-linked bonds; 4% to high-yielding debt securities; and 25% in cash or cash equivalent securities.

The Enrollment Year Investment Options seeks to match its risk level to the beneficiary's investment time horizon based on the year that the beneficiary is expected to enroll in an eligible educational institution and/or the expected year in which funds will be withdrawn to pay for qualified higher education expenses. 

As the beneficiary approaches enrollment, the asset allocation shifts to a more conservative portfolio. The investment options during the enrollment year for younger beneficiaries aim for favorable long-term returns by exposing them to higher levels of equities. As the beneficiary gets closer to the chosen enrollment year, the allocation to equities and real estate is reduced in favor of fixed income and money market securities to preserve capital.