The Missouri Higher Education Savings Program will be managed by TIAA-CREF, one of the nation's largest financial services companies.

State Treasurer Bob Holden announced the contract at a morning news conference Monday at the Cape Girardeau Area Vocational-Technical School.

TIAA-CREF will implement, manage and market the savings program. Participants will be able to set up accounts by August.

"More than 85 percent of all jobs in the next century will require some education or training beyond high school," said Holden, who chairs the Higher Education Savings Board.

Legislation developed by Holden and approved by the General Assembly last year created the Missouri Higher Education Savings Program.

Funds placed in this statewide pooled savings program as well as interest earnings will be exempt from Missouri state income taxes. Federal taxes on account earnings are postponed until distribution of the funds and are taxed at the student's tax rate.

People can make contributions to a student's account.

In addition to managing Missouri's program and similar ones in four other states, TIAA-CREF offers mutual funds, IRAs, annuities and trust services.

Its pension system ranks as the world's largest, based on assets under management. The system serves more than 2 million employees of 9,000 colleges, universities and other educational and research institutions.