Taking advantage of the expiration of its five-year contract with TIAA-CREF on July 30, New York States College Savings Program has selected Columbia Management Group, a division of Fleet Bank, and Vanguard to manage its $1.8 billion 529 plan.
Lower fees, as well as administrative, marketing and investment management services, factored into New Yorks decision to make the change. "We are required to have an open, competitive request-for-proposal process," said David Neustadt, a spokesman for New Yorks Office of the State Comptroller.
Vanguard will provide investment choices, market and promote the plan; Columbia will distribute the plan through financial advisers; and Upromise will handle administrative and back-office services. The comptrollers office is still negotiating final details. To aid in the transition, TIAA-CREFs contract has been extended through Nov. 14.