Lincoln, Nebraska,
08
May
2018
|
04:47 PM
America/Chicago

Reduced costs, new investment options among planned changes

First National Bank of Omaha Expands its Role for State Farm® College Savings Plan

Nebraska State Treasurer Don Stenberg today announced First National Bank of Omaha, the program manager for The State Farm College Savings Plan (the “Plan”), will expand its responsibilities to become distributor and servicing agent for the Plan. Stenberg is Trustee of the Nebraska Educational Savings Trust (NEST).

The changes will take effect August 6, 2018. Authorized State Farm registered representative agents will be able to offer and service Plan accounts on that date.

After the transition, customers will see reduced expenses, as well as new investment options and underlying funds. Account owners will be notified in advance of these changes. Until the transition occurs, account owners can continue to contribute to their accounts and update their account information, and new accounts can be opened. Account owners do not need to do anything to transition to the newly designed Plan.

“Having successfully provided comprehensive program management and distribution responsibilities for the three other programs in the Nebraska Educational Savings Plan Trust, First National Bank of Omaha is poised for continued success as it assumes a more robust role,” Treasurer Stenberg said. “Together, we intend to continue to provide plans with quality investment options for our account owners. Our mission is reflected in our planned changes.”

The transition will occur automatically. The changes will not affect the tax status of the Plan. The changes do not count towards the account owner’s twice a year limit to change investment options.

These changes will not affect the other three plans in the Nebraska Educational Savings Trust – the NEST Direct College Savings Plan, the NEST Advisor College Savings Plan and the TD Ameritrade 529 College Savings Plan.

“We are delighted to be working with State Farm, its agents and customers as they prepare for their loved ones’ futures,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “We are eager to begin implementing improvements to the Plan to help even more families plan and save for the costs of higher education.”

“We’re excited about the opportunity to help families across America with their education savings needs,” said Lisa Stewart, Vice President – Life, Health & Investment Planning Services, State Farm. “With the partnership of FNBO and the State of Nebraska, State Farm agents can help customers make those dreams a reality.”

Before the effective change date, account owners will receive a series of communications informing them of the transition plan and its timing. For more information on how the plan change will affect current State Farm College Savings Plan account owners, customers may call 833-471-2687.

 

About NEST 529:

NEST 529 is a tax-advantaged 529 college savings plan and provides four plans to help make saving for college simple and affordable: the NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, the TD Ameritrade 529 College Savings Plan, and The State Farm College Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 254,000 accounts, including 79,000 in Nebraska. Visit NEST529.com and treasurer.nebraska.gov for more information.

 

About First National Bank of Omaha:

First National Bank is a subsidiary of First National of Nebraska. First National of Nebraska is the largest privately owned banking company in the United States. First National and its affiliates have more than $21 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.

About State Farm®:

The mission of State Farm is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its nearly 19,000 agents and approximately 65,000 employees serve approximately 83 million policies and accounts – approximately 81 million auto, fire, life, health and commercial policies and approximately 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business ownersboats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 36 on the 2018 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.