New York to replace TIAA as program manager

TIAA-CREF has lost its bid for the next five-year contract to manage New York's College Savings Program. The winner is the team consisting of Upromise Investments, Vanguard Group (direct-sold program), and Columbia Asset Management (adviser-sold program). At this time, contract details are still being finalized. The program will remain low-cost for direct participants and for the first time will also be available through brokers.

It is anticipated that the new program management will be in place this fall (2003). Under a transition clause in the old contract, TIAA-CREF may continue to manage existing 529 portfolios for up to five years, although it is not clear what will really happen.
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