Pimco has signed a contract with the South Dakotas Office of the State Treasury to operate its 529 college savings plan, according to Tim Clark, a spokesman for Pimco. While Pimco funds are available in other states 529 plans, this marks the first plan that Pimco will operate.
Neither Pimco nor South Dakota has disclosed any of the details of the new plan. While the contract is finished and has been signed, the firm is still "working through some of the details right now," Clark said. Pimco is actively moving towards launching the plan and expects to make an announcement about it in the next week and a half to two weeks, he added.
South Dakota is one of the last states to sign an agreement to offer a 529 plan through an investment management firm, according to Chris Stack, a managing consultant for Saving for College Educational Services, an affiliate of SavingforCollege.com. Other than the few states that plan to run 529 plans on their own or those that are currently in contract negotiations with companies, Texas remains the only state without a 529 contract, Stack said.