| Principal Plus Portfolio |
| Underlying Investments |
| The investments of the Principal Plus Portfolio will include guaranteed investment contracts ("GICs")
issued by one or more insurance companies, deposits in an interest-bearing omnibus FDIC-insured bank account (the “Bank Deposit
Account”)* held at Bank of America, N.A. (the "Bank") and, to the extent approved by FAME, invest in corporate fixed-income investments and/or similar instruments.
Effective November 10, 2010, the Principal Plus Portfolio does not invest exclusively in GICs; therefore, the Principal Plus
Portfolio will not provide a guaranteed minimum overall rate of return after such date. Transamerica Life Insurance Company
(Transamerica) has issued the initial GIC and guarantees principal allocated to the GIC, accumulated interest and future
interest rates to the Investment Fund. Transamerica's commitment to the Investment Fund is based solely on its ability to
pay its obligation from its general account. The commitment to the Investment Fund is not secured by any collateral. The Principal Plus Portfolio may be an option to consider if you have low risk tolerance or a short time horizon before paying for college.
* The portion of the underlying deposits in the Bank Deposit Account that is attributable to the Units held by a Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio is (a) eligible for FDIC insurance coverage of up to $250,000 per Participant (calculated on a basis which aggregates that portion of the underlying deposits attributable to the Units held by the Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio with all FDIC-insured assets held by the Participant at the Bank) and (b) for purposes of FDIC insurance coverage only, considered to be held in the same ownership capacity as a Participant’s other single ownership accounts held at the Bank. However, neither Units of the NextGen Savings Portfolio nor the Principal Plus Portfolio are insured or guaranteed by the FDIC or any other agency of state or federal government, FAME, the Bank or the Program Manager, nor does a Participant have a direct beneficial interest or the rights of an owner in the underlying deposits in the Bank Deposit Account. Participants are responsible for monitoring the aggregated value of the portion of the underlying deposits of the NextGen Savings Portfolio or the Principal Plus Portfolio attributable to the Units of such Portfolios held by a Participant plus their other deposits held directly with the Bank, for purposes of the $250,000 FDIC insurance coverage limit. The percentage of the Principal Plus Portfolio that is invested in the Bank Deposit Account as of the end of each month will be posted on www.nextgenplan.com/performance.html within ten business days of month-end. Deposits held in different ownership capacities, as provided in the FDIC rules, are insured separately. UGMA/UTMA Accounts are generally treated as assets of the Designated Beneficiary, and other types of trust Accounts may be treated as assets of the trustee, for purposes of the FDIC limit. Custodians of UGMA/UTMA Accounts and trustees of trust Accounts should consider how these assets will be treated for purposes of the FDIC limit. For more information, please visit www.fdic.gov. |
