Massachusetts college savings program renews Fidelity's 529 contract

Fidelity Investments' contract as program manager for Massachusetts' 529 college savings program, the $2.5 billion U.Fund College Investing Plan, has been renewed by Massachusetts Educational Financing Authority. The organization issued a request for proposals for the contract this year that attracted a number of major players in the 529 industry, although Fidelity was generally regarded as the front-runner. Boston-based Fidelity has been the plan's program manager for the past 10 years, and the new contract runs for five years beginning in January with five possible one-year renewals. The plan currently has more than 145,000 accounts. Fidelity will also continue to offer operational support for Boston-based MEFA's U.Plan Prepaid Tuition Program. “Fidelity's proposal significantly expands MEFA's business model to assist families paying for college and promotes access to higher education through expanded outreach," Thomas Graf, executive director of MEFA, said in a statement released today. The renewal not only underscores MEFA's satisfaction with Fidelity but also enhances the firm's stature in the competitive Section 529 plan industry, said Mary Anne Busse, an industry consultant and managing director for Great Disclosure LLC of Royal Oak, Mich.