The Pennsylvania Treasury Department has hired Vanguard Group Inc. and Upromise Inc. to overhaul its direct-sale 529 college savings plan.
Vanguard, of Valley Forge, Pa., has taken over from Delaware Investments as the investment manager and distributor of the state's 529 Direct Investment Plan, the department said Monday.
Upromise Investments Inc. of Needham, Mass., is now providing record keeping and administration for the plan.
Vanguard offers investment options in 18 state plans with more than $14 billion of assets. Upromise administers 529 plans for more than a million investors with assets of more than $13 billion under administration.
The Pennsylvania plan will include 13 investment options - three age-based portfolios and 10 individual portfolios. There will be no annual account fee, and 12 of the investment options will have a management fee of 0.7%. The socially responsible portfolio's management fee will be 0.75%.
