Missouri has tapped two successors to TIAA-CREF as providers for its 529-college savings plan program. New York City-based TIAA-CREF had administered the Missouri Saving for Tuition (MoST) plan since its launch in 1999. Its contract expires on May 10. Rather than renew the agreement with TIAA-CREF, the state chose a consortium bid from three providers.

The plan decision marks the second time that TIAA-CREF has lost a 529 mandate to Vanguard. One of the reasons for the losses is TIAA-CREFs unwillingess or inability to match Vaguard's lower fees.

UPromise Inc. is the leader of the consortium that also includes Vanguard Group and American Century Companies.

St. Louis UPromise will provide loyalty rewards to investors in the program through its Simply Brilliant service and serve as program manager while Vanguard will and American Century will offer investments to the program participants.

State Treasurer Sarah Steelman said that the UPromise loyalty program will add corporate money to participants accounts when they buy products affiliated with the program or use an affiliated credit card.

She added that the new provider will add to the number of investment options offered through the program as well as take lower fees than those paid to TIAA-CREF. American Century and Vanguard will provide 18 investment options to investors who purchase shares directly, up from the current three.

Those who go through brokers will have 24 funds from 11 different fund families compared to just eight currently. 

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