Treasurer Erick Russell Highlights Rating Upgrade at CHET College Savings Plan Meeting

12/09/2024

Treasurer Erick Russell Highlights Rating Upgrade at CHET College Savings Plan Meeting

HARTFORD, Connecticut - Connecticut Treasurer Erick Russell announced that the Connecticut Higher Education Trust (CHET) 529 college savings plan, of which he serves as trustee, has earned a rating upgrade from Morningstar, an investment research company that reviews, rates, and grades 529 plans throughout the United States on an annual basis.

CHET Direct, the managed investment option with over 170,000 accountholders, was upgraded from Bronze to Silver, the second-highest rating possible. Only five plans across the nation now hold a higher rating. The announcement was made during the annual meeting of the CHET Advisory Committee last week.

"Saving with a CHET account can make college and other education expenses easier to navigate," said Treasurer Russell. "Helping families prepare and save for the future is a fundamental responsibility and a tremendous point of pride for my office. I'm glad to see that commitment reflected in this upgrade. I hope this news encourages more Connecticut families to check CHET out and open an account for the young people in their lives. With strong investment performance and starting early, even small contributions can generate big returns over time."

Morningstar evaluates a range of criteria including investment performance, oversight, and staff acumen. Comments in its review of Connecticut's plans cited strong personnel at Fidelity, the third-party administrator for CHET, and rigorous oversight within the Office of the Treasurer, including veteran investment professionals.

"Morningstar's decision to upgrade the CHET Direct plan to a Silver rating is a testament to the hard work our teams have done to help even more students in Connecticut and beyond save for their education," said Jared Newman, director of 529 college savings at Fidelity Investments. "With the cost of college on the rise, we're proud to continue working alongside CHET and Treasurer Russell to help families across the state achieve their dreams."

The ratings are an important validator for 529 plans and a measure of overall program management. CHET Direct plans offer investors a variety of strategies based on risk, age, and investment goals. There is no annual fee, and no minimum amount required to open a CHET account.

Funds used for education expenses like tuition, room and board, books, and computer equipment are free from both federal and state taxes. Contributions to CHET accounts are tax deductible for Connecticut income tax purposes up to $5,000 per year for a single filer or $10,000 for those filing jointly.

To open an account or learn more, visit AboutCHET.com.

Contact: Tyler Van Buren
[email protected] | (959) 529-2468

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