IT S LI KE A CHOOSE- YOUR-OWN- FOR COLLEGE SAVINGS PORTFOLIO OPTIONS

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1 IT S LI KE A CHOOSE- YOUR-OWN- ADVENTURE BOOK FOR COLLEGE SAVINGS PORTFOLIO OPTIONS

2 ScholarShare 529 Get the most out of every dollar you save. Saving for higher education is one of the most important financial decisions you can make. With 100% tax-free growth, low fees, and the ability to earn up to 25% more money for college, ScholarShare 529 can help build a brighter future for your family. $40,000 $30,000 $20,000 Taxable Account Taxes After-Tax Earnings $15,694 ScholarShare 529 Tax Savings $7,730 After-Tax Earnings $15,694 25% More Money for Higher Education This hypothetical example assumes a $5,000 initial deposit, $50 per month subsequent deposit for 18 years and 7% annual return on investment. Tax calculations assume the maximum federal tax capital gains tax rate of 20% and the maximum CA marginal tax rate of 13%. $10,000 Monthly Contributions $10,800 Monthly Contributions $10,800 At the end of the accumulation period, the taxable account would be worth $31,494. The ScholarShare 529 account would be worth 25% more than that amount, or $39,224. Initial Contribution $5,000 Initial Contribution $5,000 AFFORDABLE $25 to get started and $15 for payroll deduction and a maximum contribution limit of $475,000 per beneficiary No application fee, no transfer fee, no commission, no annual maintenance fee Low-fee investment portfolios. Total annual asset-based fees range from 0.27% to 0.57% for the actively managed investment options and 0.08% to 0.21% for the passively managed investment options, depending on the investment portfolio selected FLEXIBLE 19 investment options featuring leading institutional investment managers. The investment lineup features leading institutional investment managers: T. Rowe Price, Dimensional Fund Advisors, PIMCO, Metropolitan West & TIAA-CREF Asset Management Active & passive age-based portfolios, multi-fund asset allocation portfolios, single-fund portfolios, and a principal-protected portfolio option ACCESSIBLE Easy online enrollment and online access through ScholarShare529.com Dedicated local 529 consultants for on-campus education Resources and online account access through ScholarShare529.com Sales & Service center available at SCHOLARSHARE 529 IS AN ADVISOR-SUPPORTED PLAN, LEARN MORE AT SCHOLARSHARE529.COM/PLAN/EVERYONE-FINANCIAL.SHTML. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. The ScholarShare 529 College Savings Plan total annual asset-based fees as of March 1, CALIFORNIA S COLLEGE SAVINGS PLAN 2

3 ScholarShare 529 Investment Portfolios You can invest contributions in any one or a combination of ScholarShare 529 s 19 investment portfolios. These portfolios vary in their investment strategy and degree of risk, allowing you to select a portfolio or combination of portfolios that fit(s) your needs. Age-Based Portfolio Options The age-based investment portfolios seek to match the investment objective and level of risk to the investment time horizon by taking into account the beneficiary s current age and the number of years before the beneficiary turns 18 or is expected to start college. The risk level automatically shifts from aggressive to conservative as the beneficiary ages. This option is good for people who want a simple, all-in-one option. Learn more at ScholarShare529.com/research/age-based.shtml. ACTIVE AGE-BASED PORTFOLIO (Risk level shifts from Aggressive to Conservative as the beneficiary ages) Each of the age bands in the Active Age-Based Portfolio invests primarily in mutual funds that are actively managed. An actively managed mutual fund is different from an index mutual fund in that an actively managed mutual fund is not managed to track its benchmark index, but rather, is managed pursuant to the investment style and strategy of its investment manager. This means that the performance of an actively managed mutual fund can vary greatly from that of its benchmark index in either a positive or negative direction. Because of the active management style, actively managed mutual funds tend to have higher expenses than index mutual funds. PASSIVE AGE-BASED PORTFOLIO (Risk level shifts from Aggressive to Conservative as the beneficiary ages) Each of the age bands in the Passive Age-Based Portfolio invests primarily in mutual funds that are index mutual funds. An index mutual fund is managed to track a specific securities index that the mutual fund uses as a benchmark. Each of the age bands also invests in certain other mutual funds that are actively managed (the TIAA-CREF Real Estate Securities Fund, the TIAA-CREF Inflation-Linked Bond Fund and the TIAA-CREF High-Yield Fund) and certain age bands also invest in a funding agreement. Therefore, although a majority of the mutual funds in which this Portfolio invests are passively managed, it does not invest exclusively in passively managed mutual funds. CALIFORNIA S COLLEGE SAVINGS PLAN 3

4 Multi-Fund Portfolio Options These investment portfolios seek to provide investment portfolios for participants who prefer to select an investment portfolio for its specific asset allocation. Each multi-fund investment portfolio is allocated to multiple underlying funds and/or a funding agreement and has a different investment objective and investment strategy. The allocations in the multi-fund investment portfolios do not change automatically as the beneficiary ages as they do in the Age-Based Investment Portfolios. Learn more at ScholarShare529.com/research/multi-fund.shtml. ACTIVE MULTI-FUND INVESTMENT PORTFOLIOS There are six separate Active Multi-Fund Investment Portfolios that invest primarily in mutual funds that are actively managed and/or in a funding agreement. Each of these Investment Portfolios has its own investment objective and strategy, and each has a fixed risk level that does not change as the Beneficiary ages. Active Diversified Equity Portfolio (Risk level Aggressive) Active Growth Portfolio (Risk level Aggressive) Active Moderate Growth Portfolio (Risk level Moderate) Active Conservative Portfolio (Risk level Conservative to Moderate) Active International Equity Portfolio (Risk level Aggressive) Active Diversified Fixed Income Portfolio (Risk level Moderate) PASSIVE MULTI-FUND INVESTMENT PORTFOLIOS There are six separate Passive Multi-Fund Investment Portfolios each of which invests a majority of its assets in index funds and/or a funding agreement. Each of these Investment Portfolios has its own investment objective and strategy, and each has a fixed risk level that does not change as the Beneficiary ages. Passive Diversified Equity Portfolio (Risk level Aggressive) Passive Growth Portfolio (Risk level Aggressive) Passive Moderate Growth Portfolio (Risk level Moderate) Passive Conservative Portfolio (Risk level Conservative to Moderate) Passive Diversified Fixed Income Portfolio (Risk level Moderate) How Single-Fund Portfolio Options Work These investment portfolios are each invested solely in shares of a single Underlying Fund. For those investment portfolios invested in an Underlying Fund, their performance is entirely reliant on the performance of that Underlying Fund and may be more volatile than the age-based investment portfolios or the multi-fund investment portfolios. You should be aware that participants do not own shares of the underlying funds directly. Each of the single fund investment portfolios is described in more detail below. SINGLE-FUND INVESTMENT PORTFOLIOS There are five separate Single-Fund Investment Portfolios, four of which are invested in one mutual fund each and one of which is solely allocated to a funding agreement. Each of these Investment Portfolios has its own investment objective and strategy, and each has a fixed risk level that does not change as the Beneficiary ages. Learn more at ScholarShare529.com/research/single-fund.shtml. Social Choice Portfolio (Risk level Aggressive) Index Bond Portfolio (Risk level Moderate) Index U.S. Large Cap Equity Portfolio (Risk level Aggressive) Index U.S. Equity Portfolio (Risk level Aggressive) CALIFORNIA S COLLEGE SAVINGS PLAN 4

5 How the Guaranteed Portfolio Option Works This investment portfolio seeks to preserve capital and provide a stable return. You may want to consider it if you have a short investment horizon and are looking for a conservative investment with a low level of risk. Learn more at ScholarShare529.com/research/guaranteed.shtml. GUARANTEED PORTFOLIO OPTION Principal Plus Interest Portfolio (Risk level Conservative) The assets in this Investment Portfolio are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Board as the policyholder on behalf of the Plan. The guarantee is made by the insurance company to the policyholder, not to Account Owners. See the Plan Disclosure Booklet for more information. CALIFORNIA S COLLEGE SAVINGS PLAN 5

6 Plan Fees The following table describes the Plan s current fees. The Board reserves the right to change the fees and/or to impose additional fees in the future. Total Annual Asset-Based Fees as of March 1, INVESTMENT PORTFOLIOS PLAN MANAGER FEE (1)(2) ADMINISTRATIVE FEE (1)(3) BOARD ESTIMATED EXPENSES OF AN INVESTMENT PORTFOLIO S UNDERLYING INVESTMENTS (4) TOTAL ANNUAL ASSET-BASED FEES (5) ACTIVE AGE-BASED PORTFOLIO Age Band 0-4 Years 0.03% 0.05% 0.48% 0.56% Age Band 5-8 Years 0.03% 0.05% 0.48% 0.56% Age Band 9-10 Years 0.03% 0.05% 0.48% 0.56% Age Band Years 0.03% 0.05% 0.47% 0.55% Age Band Years 0.03% 0.05% 0.47% 0.55% Age Band 15 Years 0.03% 0.05% 0.42% 0.50% Age Band 16 Years 0.03% 0.05% 0.37% 0.45% Age Band 17 Years 0.03% 0.05% 0.30% 0.38% Age Band 18 Years and Over 0.03% 0.05% 0.23% 0.31% PASSIVE AGE-BASED PORTFOLIO Age Band 0-4 Years 0.03% 0.00% 0.11% 0.14% Age Band 5-8 Years 0.03% 0.00% 0.12% 0.15% Age Band 9-10 Years 0.03% 0.00% 0.13% 0.16% Age Band Years 0.03% 0.00% 0.13% 0.16% Age Band Years 0.03% 0.00% 0.14% 0.17% Age Band 15 Years 0.03% 0.00% 0.13% 0.16% Age Band 16 Years 0.03% 0.00% 0.12% 0.15% Age Band 17 Years 0.03% 0.00% 0.10% 0.13% Age Band 18 Years and Over 0.03% 0.00% 0.08% 0.11% MULTI-FUND PORTFOLIOS Active Diversified Equity Portfolio 0.03% 0.05% 0.49% 0.57% Active Growth Portfolio 0.03% 0.05% 0.48% 0.56% Active Moderate Growth Portfolio 0.03% 0.05% 0.47% 0.55% Active Conservative Portfolio 0.03% 0.05% 0.23% 0.31% Active International Equity Portfolio 0.03% 0.05% 0.36% 0.44% Active Diversified Fixed Income Portfolio 0.03% 0.05% 0.46% 0.54% Passive Diversified Equity Portfolio 0.03% 0.00% 0.10% 0.13% Passive Growth Portfolio 0.03% 0.00% 0.12% 0.15% Passive Moderate Growth Portfolio 0.03% 0.00% 0.14% 0.17% Passive Conservative Portfolio 0.03% 0.00% 0.09% 0.12% Passive Diversified Fixed Income Portfolio 0.03% 0.00% 0.17% 0.20% Index International Equity Portfolio 0.03% 0.00% 0.09% 0.12% SINGLE-FUND PORTFOLIOS Social Choice Portfolio 0.03% 0.05% 0.18% 0.26% Index Bond Portfolio 0.03% 0.00% 0.12% 0.15% Index U.S. Large Cap Equity Portfolio 0.03% 0.00% 0.06% 0.09% Index U.S. Equity Portfolio 0.03% 0.00% 0.05% 0.08% Principal Plus Interest Portfolio (6) NONE NONE NONE NONE CALIFORNIA S COLLEGE SAVINGS PLAN 6

7 (1) Although the Plan Manager Fee and the Board Administrative Fee, if any, are deducted from an Investment Portfolio, not from your Account, each Account in the Investment Portfolio indirectly bears its pro rata share of the Plan Manager Fee and the Board Administrative Fee as these fees reduce the Investment Portfolio s return. (2) Each Investment Portfolio (with the exception of the Principal Plus Interest Portfolio) pays the Plan Manager a fee at an annual rate of 0.03% of the average daily net assets held by that Investment Portfolio. (3) Certain Investment Portfolios pay to the Board a fee equal to 0.05% of the average daily net assets held by such Investment Portfolios to pay for expenses related to the administration of the Plan. (4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Portfolio invests. The amounts are calculated using the expense ratio reported in each mutual fund s prospectus effective as of the date this Disclosure Booklet was finalized for printing, and are weighted according to the Investment Portfolio s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Portfolio s assets, each Investment Portfolio (other than the Principal Plus Interest Portfolio, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual fund s return. (5) These figures represent the estimated weighted annual expense ratios of the mutual funds in which the Investment Portfolios invest plus the fees paid to the Plan Manager and to the Board. (6) The Principal Plus Interest Portfolio does not pay a Plan Manager Fee or a Board Administrative Fee. TIAA-CREF Life Insurance Company ( TIAA-CREF Life ), the issuer of the funding agreement in which this Investment Portfolio invests and an affiliate of TFI, makes payments to the Plan Manager. TIAA-CREF Life also pays the Board a fee, equal to 0.05% of the average daily net assets held by the Principal Plus Interest Portfolio. These payments, among many other factors, are considered by the issuer when determining the interest rate(s) credited under the funding agreement. To learn more about the California 529 College Savings Plan, its investment objectives, tax benefits, risks, and costs, please see the Disclosure Booklet at ScholarShare529.com. Read it carefully. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the funds aren t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the California 529 College Savings Plan. All social media platforms are managed by the State of California. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein SCH010H_053018