Asset-Based Fees and Expenses
The following table sets forth the asset-based fees and expenses associated with the Investment Options. An Account bears the cost of the asset-based fees and expenses of the Investment Option(s) that you select for investment. Any applicable asset-based fees and expenses will decrease the value of your investment in CalABLE by reducing the value of your Units.
|Investment Portfolio||State Administrative Fee¹||Estimated Underlying Investment Expenses³||Total Annual Asset-Based Fees and Expenses⁶|
|Aggressive Growth Portfolio||0.44%||0.08%||0.52%|
1 The State Administrative Fee is used to defray costs incurred by the Board to provide oversight and administration of CalABLE. The State Administrative Fee is charged based on an Investment Option’s average daily net assets. The State Administrative Fee is assessed on a daily basis and paid monthly. The State Administrative Fee may change at any time.
2 Currently, the 0.44% State Administrative Fee for the FDIC-Insured Portfolio is being waived by the Board. The Board reserves the right to charge a State Administrative Fee to the FDIC-Insured Portfolio in the future to the extent that the imposition of such Fee would not result in a loss of principal for Account Owners.
3 If you invest in a Target Risk Investment Option, you will indirectly bear the expenses of its underlying mutual funds. The underlying mutual funds’ expenses may include, but are not limited to, any investment advisory fees, distribution (12b-1) fees, shareholder servicing fees, and other expenses. The table reflects the weighted expense ratio of each Target Risk Investment Option’s underlying mutual funds as an annualized percentage of the Investment Option’s average daily net assets. The amounts are calculated using the most recent expense ratio reported prior to the date of this Program Disclosure Statement weighted according to the Investment Option’s allocation among the underlying mutual funds in which it invests.
4 Although the Moderate Portfolio and the Conservative Portfolio have investment expenses associated with their underlying mutual funds, they do not bear any investment expenses associated with the Funding Agreement. However, TIAA-CREF Life Insurance Company (“TIAA-CREF Life”), the issuer of the Funding Agreement and an affiliate of the Program Manager, makes payments to the Program Manager. These payments, along with many other factors, may be considered by TIAA-CREF Life when determining the interest rate(s) credited under the Funding Agreement.
5 TIAA Bank, a division of TIAA, FSB, an affiliate of the Program Manager, is the depository institution for the custodial account that underlies the FDIC-Insured Portfolio, and makes payments to the Program Manager. These payments, along with many other factors, may be considered by TIAA Bank when determining the interest rate(s) credited to the custodial account.
6 The “Total Annual Asset-Based Fees and Expenses” equals the sum of the State Administrative Fee and the Estimated Underlying Investment Expenses.
Annual Maintenance Fee
All Accounts are subject to the Annual Maintenance Fee stated in the table below. A pro-rated portion of the Annual Maintenance Fee will be deducted proportionately from each Investment Option in which you are invested on a monthly basis. The Board reserves the right to change or increase the Annual Maintenance Fee in the future.
|Annual Maintenance Fee||$37|
For an Account with a zero balance, the Annual Maintenance Fee will accrue in the manner described above for 90 days, after which time the Account will be terminated. If the Account is subsequently reinstated, the accrued Annual Maintenance Fee will be deducted from the reinstated Account. If a contribution is made to a zero balance Account prior to it being terminated, the accrued Annual Maintenance Fee will be deducted from the Account.
Investment Cost Examples
The following table includes hypothetical examples to help you consider the approximate cost of investing in the Investment Portfolios over different periods of time. Your actual cost may be higher or lower. The examples are based upon the following assumptions for the time periods shown:
- A $10,000 contribution invested in a single Investment Option for the time periods shown.
- A 5% annualized rate of return on amounts invested in the Investment Option.
- Program fees and expenses remain the same.
- At the end of each period shown, the Account balance is withdrawn through a Qualified Withdrawal.
The hypothetical examples do not include any of the potential tax or other benefits associated with contributions or the tax or benefit consequences associated with Non-Qualified Withdrawals. The hypothetical examples include the Investment Options’ respective asset-based fees and expenses, but no other fees or expenses. Please note that the hypothetical examples do not include the Annual Maintenance Fee that will be charged to your Account on an annual basis across all Investment Options in which you invest. The hypothetical examples do not represent actual past or future performance.
|Investment Portfolio||1 Year||3 Years||5 Years||10 Years|
|Aggressive Growth Portfolio||$53||$167||$291||$654|
1No costs will be incurred while the State Administrative Fee is waived.
Other Account Fees
The table below reflects the other fees to which your Account may be subject. The Board reserves the right to change or increase these fees and to impose additional fees in the future.
|Print and Paper Mail Delivery Fee||$10||Deducted when you open an Account and select paper mail document delivery. This amount is pro-rated for the first year and then charged in full, annually in January thereafter.|
|Insufficient Funds Fee||$20||Deducted from your Account each time a check or ACH contribution is returned or rejected due to insufficient funds.|
|Outgoing Check Processing Fee||$5||Deducted from your Account each time you request a withdrawal to be paid by check.|
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