August 25, 2016
The Maryland 529 was originally created under the Enabling Legislation as the Maryland Higher Education Investment Program by the 1997 Maryland General Assembly. MD529 is administered by an 11 member Board consisting of the State Treasurer, the State Comptroller, the Secretary of Higher Education, the State Superintendent of Public Schools, the Chancellor of the University System of Maryland, the Secretary of Disabilities and five citizen members appointed by the Governor.
MD529 currently offers two 529 Plans: the Maryland Prepaid College Trust (MPCT) that lets families lock in one semester to five years of future college tuition at today’s prices and is backed by a legislative guarantee; and the Maryland College Investment Plan (MCIP) that currently offers 14 no-load investment options and is managed and distributed under the current contract by T. Rowe Price Associates, Inc. The Maryland College Investment Plan has received a Morningstar “Gold” rating for 6 years in a row.
The staff of MD529 administers all aspects of the MPCT and oversees and administers the Board’s contact with the program manager of the MCIP. MD529 will be compensated for its services to the MCIP by receiving a portion of an initial enrollment fee and/or receiving basis points on invested assets in the MCIP, as proposed in Attachment F.
Offerors Minimum Qualifications
2.1.1 Offerors must clearly state and demonstrate within 220.127.116.11 of the Technical Proposal that they satisfy the following qualifications.
At a minimum, Offerors shall have:
• $3 billion in assets under management, recordkeeping, and/or program management and sufficient capital to assume responsibility of, and provide ongoing services to, the Program;
• Minimum of (3) years of experience with Section 529 plans or defined contribution/other participant-directed plans that require similar services outlined in the Scope of Work; and
• All applicable federal licenses and registrations necessary to conduct a financial services business (e.g. – registered Investment Advisor, Investment Company and/or Broker/Dealer, as applicable)
If the Offeror is a joint venture, each partner in the joint venture must meet these criteria individually.