Kansas 529 Program Selects TIAA as Manager

Kansas Treasurer Steven Johnson has selected TIAA as program manager for the state’s 529 program, taking over from American Century Investments.

“In making this change, we carefully considered the enhancements and savings we could deliver to provide greater value to families saving for education,” Johnson said in a statement. “Under new management with TIAA, our 529 offering will be one of the lowest-cost and best-in-class programs in America to keep even more of Kansans’ contributions working for future education expenses.”

Following the selection, TIAA now manages education savings programs across 10 states —California, Colorado, Georgia, Illinois, Kansas, Michigan, Minnesota, Oklahoma, Washington and Wisconsin—encompassing 2.3 million accounts and $85 billion in assets.

A 529 savings account is tax-advantaged and intends to serve as an investment account for education expenses.

“This is one of the largest programs in the industry, and it reflects a simple truth: Kansas families deserve more of their savings working toward their children’s futures,” said David Nason, TIAA’s CEO of wealth management and advice solutions, in a statement. “These savings represent real money staying in families’ pockets, money that will now compound for education.”

The program encompasses two plans: Learning Quest 529 Education Savings Program and the Schwab 529 Education Savings Plan. According to the announcement, the Learning Quest plan will rebrand to become Quest529.

The announcement also estimated that TIAA intends to deliver $38 million in annual savings for the program by reducing fees.

The transition to TIAA management is expected to be fully completed by March 2.

Kansas’ two 529 plans manage approximately $14.5 billion in assets.