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Important Changes Coming To YourMichigan 529 College Savings Plan2020 Transition Guide

Here’s What’s NewStarting on June 15, 2020 here are the key changes coming to MESPLower Fees Resulting in an Overall 44%Reduction in Average FeesNew Underlying Investments fromVanguard, Schwab and iShares.New Enrollment Year Investment OptionsNew and Improved Online AccountManagementNew Target Allocation Investment Options(Balanced Option renamed ModerateAllocation Option)New Payroll Direct Deposit ProcessWant proof? Here’s how MESP average plan feesrank against 80 529 college savings plans.*LOWER FEESFor nearly two decades, MESP has sought to makehigher education more accessible for families. As oneof the nation’s lowest cost 529 plans, MESP makesyour goal of saving for your child’s higher educationmore attainable. Effective June 15, 2020, MESPaccount owners will see more of their hard-earnedmoney invested toward their college savings goalswith average annual fees reduced by 44%.0.096%ALL PLANS0.59%DIRECT SOLD PLANS0.40%ADVISOR SOLD PLANS0.95%Based on average annual asset-based fees.*Source: Strategic Insight 529 Plan Fee Analysis, First Quarter 2020.WHAT YOUNEED TO DO.ENROLLMENT YEAR INVESTMENT OPTIONBe sure to read this information carefully, including theupdated Program Description which can be reviewed ordownloaded at MIsaves.com/transition or contact us at1-877-861-6377.If you currently invest in the MESP Age-Based Investment Option (Conservative, Moderate orAggressive), your account will automatically convert to an Enrollment Year Investment Option,based on your child’s age as of June 12, 2020. See the next page for details.Beginning on June 15, you will need to create a newusername and password to access your account online.The following items are required to complete the newregistration process:TWO NEW INVESTMENT OPTIONSMESP account owners may now take advantage of contributing future contributions into two (2)new Target Allocation Options: Aggressive Allocation Option and Conservative AllocationOption. Together with the Moderate Allocation Option (formerly named the Balanced Option),these multi-fund investment options offer additional choices for those who prefer a fixed assetallocation, rather than one that automatically changes as your child approaches an enrollmentyear. To learn more about the new MESP investment options, download the Program Description.1. Your current or new MESP account number*2. Account Owner Social Security Number.3. Account Owner Zip Code.NEW UNDERLYING INVESTMENTS* We recommend you make note of your current account numbersbefore June 15. You can obtain it by logging into your onlineaccount or by referring to your quarterly account statement.MESP will expand its multi-manager investment lineup to include underlying investmentsfrom Vanguard, Schwab and iShares (BlackRock) while continuing to offer the same qualityinvestments from TIAA and TIAA-CREF Life. Refer to the MESP Program Description, datedJune 15, 2020, for additional information about MESP Investment Option underlying funds.Are you making automatic payrollcontributions?If you are making payroll contributions toyour account, a letter was mailed to you withinstructions for additional action required byyou. If you did not receive the mailing, visitMIsaves.com/transition or contact us forassistance at 1-877-861-6377.This sample screen shot of the Web Registration page providesan illustration of the process to register for a new username andpassword.New Lower Fees and Enhanced InvestmentOptions make a great program even better!Payroll contributions submitted to the Plan afterJune 11, 2020 will not be processed and will bereturned to your employer unless you updateyour direct deposit instructions.IMPROVED ONLINE ACCOUNT MANAGEMENT & PAYROLL DIRECT DEPOSITAn improved online account management interface. The new interface will maintain thecurrent security features to keep your personal information safe.A new process for payroll direct deposit. You will no longer be required to mail in apaper payroll form to MESP. For those currently making payroll contributions, a letterwas mailed to you with instructions for the transition. Please refer to the “What YouNeed To Do” section on the previous page.This transition will not create a taxable event or count toward your two allowable investment changes per year.After the transition you may change your investment selection(s) if you have not already made two changes in 2020.

Do you currentlyhave an Age-BasedInvestment Option?If this is your current option, please read thissection. If your beneficiary is not enrolled inthis Investment Option, you may skip aheadto the Transition Timeline section found onthe next page.Automatic Conversion to the New Enrollment Year Investment OptionMESP is committed to innovation, and more importantly,positioning your college savings investments for optimalperformance throughout the lifetime of your account.For example, if your beneficiary is 7 years old on June12, your Age-Based Allocation (5-8 Years) Option willautomatically convert to the 2030/2031 Enrollment YearOption. The Enrollment Year Investment Option willautomaticallyDuring the transition, the Michigan Education SavingsProgram will automatically convert your Age-BasedInvestment Option (Conservative, Moderate, Aggressive)to an Enrollment Year Investment Option based on thebeneficiary’s age on June 12, 2020.The Age-Based Investment Options (Conservative,Moderate, Aggressive) have been popular investmentchoices for families. Based on your beneficiary’s age,this option automatically adjusts the investment mix ofequities, fixed income, and a cash equivalent over time tobecome more conservative as your beneficiary nears theage of 18.The new Enrollment Year Investment Option builds onthis methodology by offering more flexibility to meetvarying investment objectives, risk profiles and investmenttime horizons. Instead of automatically adjusting theinvestment mix based on your beneficiary’s age, theportfolios automatically adjust based on the expectedyear your beneficiary will enroll in school. Plus, you havethe flexibility to choose the enrollment year based on theexpected year of school enrollment for your beneficiary or adifferent enrollment year that more closely aligns with yourinvestment objectives and risk tolerance.With the new Enrollment Year Investment Option, youwill continue to experience the ease of use – you receivea professionally managed, diverse investment portfoliothat does not require you to make any manual changesthroughout the life of the investment. Account ownersmay also benefit from more frequent asset allocationadjustments in the Enrollment Year Investment Option,providing a more gradual investment allocation shift andreducing the timing risk associated with making allocationchanges to equities.adjust to become more conservative as your beneficiary’senrollment year approaches.As with all 529 Plans, you may change your investments inyour MESP account up to twice per calendar year, or upona change in beneficiary. If you have not made two transfersamong your investment options in 2020, you may do so anytime before December 31, 2020. If you have already madetwo transfers among your investment options, you will needto wait until January 1, 2021 to do so.Learn more about the Enrollment Year Investment Options in the ProgramDescription available at MIsaves.com/transition or contact us at 1-877-861-6377This chart shows how your current Age-BasedInvestment Option will be transitioned to anEnrollment Year Investment Option.BENEFICIARY AGEON JUNE 12, 2020ENROLLMENT YEARINVESTMENT OPTIONS0-12036 / 20372-32034 / 20354-52032 / 20336-72030 / 20318-92028 / 202910-112026 / 202712-132024 / 202514-152022 / 202316-172020 / 202118 In School1-877-861-MESPMIsaves.com

FrequentlyAsked QuestionsTransition TimelineThursday, June 11, 2020No transactions will be processed if received after 4:00 p.m. ET until after the transition.Why are changes being made to theMichigan Education Savings Program?To make it easier for online account access post-transition, make note of your current accountnumber and download your most recent account statement.Friday, June 12, 2020The website and phone center will be unavailable on Friday June 12, 2020, beginning at 4:00 p.m. ET. Once the transition is completed, your account will automatically transition to the new accountmanagement system. If you are currently invested in an Age-Based Investment Option (Conservative, Moderate, Aggressive),your account balance(s) will automatically transfer to a new Enrollment Year Investment Option.Monday, June 15, 2020Transaction activity resumes as normal. In order to access your account online, you will need to proceed to the Web Registration pageand create a new username and password beginning on June 15, 2020, to complete theregistration process, using your old or new 11-character account number. You will receive a confirmation statement with your new MESP account number by mail, or ifyou have elected eDelivery, a confirmation statement will be delivered to your online account. Future contributions can be allocated to the new Target Allocation Investment Options:Aggressive Allocation Option and Conservative Allocation Option. Learn about the new MESPinvestment options in the Program Description available at MIsaves.com/transition or contactus at 1-877-861-6377.MESP and the Program Manager, TIAA-CREF TuitionFinancing, Inc. (TFI), are implementing changes to theprogram to enhance the overall investor experience andmake college savings easy and accessible to all Michiganfamilies.What changes are being made?Effective June 15, 2020, MESP will launch the followingchanges: Transition of the Age-Based Investment Options (Conservative,Moderate, Aggressive) to Enrollment Year Investment Options. New Target Allocation Options: Aggressive and ConservativeAllocation Option. Balanced Option renamed ModerateAllocation Option. N ew feature to select an annual automatic increase torecurring contributions. New 11-character account numbers. New payroll direct deposit process. New online account management system. N ew mailing address:PO Box 55451Boston, MA 02205-5451 N ew overnight mailing address:95 Wells Ave., Suite 155Newton, MA 02459 New electronic gifting platform with enhanced feature(you will be given a new gift code for each account uponregistering for a new online username and password.)About Your New Account NumberRather than different account numbers for each beneficiary, your newaccount number will be a 9-character string of numbers (your masteraccount number) followed by a 2-character extension for each of yourbeneficiaries. If you have only one beneficiary the extension is 01, formultiple beneficiaries 02, 03, etc.Re-establish youronline accountaccess atMIsaves.comYou must re-establish your online account access at MIsaves.com after the transitionand select a new username and password to continue accessing and managing youraccount online. You will need your old account number or your new 11-characteraccount number (9-character master 2-digit extension) to complete this step.