State Farm College Savings Plan Switches to Oppenheimer Funds

Lincoln, Neb. – Today, Nebraska State Treasurer Shane Osborn announces that effective November 1, 2008, the servicing of The State Farm College Savings Plan will change from Invesco Aim Capitol Management, Inc. and Invesco Aim Distributors, Inc. to OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc. 

“This is one of the biggest and most exciting announcements I have made as State Treasurer,” Osborn said. “I’ll keep this very simple: Nebraskans, our college savings program just became the envy of the rest of the country.” 

“We are pleased to maintain our long standing partnership with the state of Nebraska, which has served our shareholders well over the last 5 years,” said Colleen Van Dyke, Vice President of Securities Products at State Farm. “We take great care when choosing our partnerships and are truly excited by the new relationship with Oppenheimer. We are now in a great position to offer a more competitive product that will help our customers plan for their children’s future.” 

Under the new State Farm Plan, there will be five Age-Based Portfolios, tailored to the beneficiary’s college enrollment date as well as four Static Portfolios, designed to match an investor’s risk profile. As a result of the changes adopted, the average total expense ratio for the new plan will be reduced by 47 basis points. In addition, the $25 annual fee will be eliminated for State Farm account holders in the new plan.  

“When I first took office I promised Nebraskans I would stay committed to making our college savings plan one of the elite programs in the country,” Osborn said. “Today, I’m proud to report that this new contract will reduce fees for the average State Farm account holder by 53.6 percent and is a crucial step in making that promise come to fruition.” 

Said Osborn: “Having been raised by a single mother, I understand the intrinsic value of establishing a smart and thoughtful strategy to address the costs of higher education. As State Treasurer, this will always remain one of my top priorities.” 

The State Farm College Savings Plan is sponsored by the state of Nebraska and administered by the Nebraska State Treasurer serving as the plan trustee. This plan is intended to operate as a qualified tuition program, pursuant to Section 529 of the U.S. Internal Revenue Code.  The State Farm College Savings Plan is one of four college savings plans sponsored by the State of Nebraska also including, the College Savings Plan of Nebraska, the TD Ameritrade 529 College Savings Plan, and the AIM Savings Plan."Times New Roman","serif"; color:windowtext">The New State Farm College Savings Plan:  

·       No Account Fee (was previously $25/year) 

·       Lower Portfolio Expenses 

Ø Fees Before:

o   Enrollment Based Portfolios, Range 1.35%-1.61%, Average Fees 1.50% 

Ø Fees Now:

o   Enrollment Based Portfolios, Range 1.00%-1.20%, Average Fees 1.11% 

Ø Fees Before:

o   Allocation Portfolios, Range 1.53%-1.61%, Average Fees 1.56% 

Ø Fees Now:

o   Static Portfolios, Range .40%-1.20%, Average Fees .98%