Connecticut Higher Education Trust

CHET is Connecticut's official 529 college savings program, offering tax-advantaged savings accounts designed to help families save for qualified higher education expenses. It provides a range of investment options, including age-based portfolios and static investment choices, managed by TIAA-CREF Tuition Financing under the oversight of the Connecticut State Treasurer's office. The program is available to residents of Connecticut as well as non-residents who wish to invest in a 529 plan, and it can be used to pay for tuition, fees, books, supplies, and certain room and board costs at eligible educational institutions nationwide. CHET operates as a direct-sold plan, allowing participants to open accounts online or through paper forms without the need for a financial advisor, while also offering an advisor-sold channel for those who prefer professional guidance.

As a state-sponsored initiative, CHET serves a broad market of families seeking to mitigate the rising cost of college education. The program’s assets are held in trust for the benefit of account holders, ensuring that funds are dedicated solely to educational purposes.

CHET is distinguished by its status as the official 529 plan of the State of Connecticut, providing state tax benefits to Connecticut taxpayers. Its management by TIAA-CREF Tuition Financing brings institutional investment expertise to the program, and the plan is overseen by the Connecticut State Treasurer, ensuring governmental accountability. The program’s structure includes both direct-sold and advisor-sold options, offering flexibility to participants with varying levels of investment experience. Additionally, CHET’s commitment to safeguarding participant funds was highlighted after the 2018 security breach, when the program manager promptly notified the state Treasury and pledged full restitution for the affected accounts.

CHET is established under Connecticut state law and is administered by the Connecticut State Treasurer’s office. The day-to-day investment management and recordkeeping are delegated to TIAA-CREF Tuition Financing, which acts as the program manager. The trust is not a subsidiary of a private corporation but rather a public instrumentality of the state, with oversight provided by state officials and adherence to federal and state regulations governing 529 plans.