Saving with MACS just got better
On April 1, 2003, MACS will replace the Money Market Option with a new Guaranteed Option

We would like to announce an enhancement to the MACS program that could help you better achieve your college savings goals.

The Board of Directors of the College Savings Plans of Mississippi and the Mississippi Treasury Department, who jointly oversee the MACS program, have authorized TIAA-CREF Tuition Financing, Inc., the MACS Program Manager, to replace the Money Market Option with a new Guaranteed Option. This change will take place on April 1, 2003. All contributions made to the Money Market Option will be redeemed and reallocated to the Guaranteed Option.

The Guaranteed Option, which will allocate contributions to a Funding Agreement issued by TIAA-CREF Life Insurance Company (TIAA-CREF Life),¹ provides the Program with a guaranteed return of principal and an annual minimum rate of return of 3%, with an opportunity for additional returns above 3% as declared for a period of up to twelve months by TIAA-CREF Life's Board.²

Due to the investment environment for money market funds for the past year, the MACS Money Market Option has had a 1-year return of .98% (from Jan. 1 - Dec. 31, 2002).³ MACS believes that the Guaranteed Option, with its guarantee of at least a 3% annual return, could provide a more stable investment than the Money Market Option.

The Program Disclosure Booklet and Participation Agreements dated February 14, 2003 explain the change from the Money Market Option to the Guaranteed Option. This booklet replaces the Program Disclosure Booklet dated January 1, 2002 and Supplement No. 1 Dated June 20, 2002.

If you have any questions regarding the Program, continue to browse this website or call 1 800 486-3670 from 7 a.m. to 7 p.m. ET, Monday – Friday to speak with one of our telephone consultants.

Thank you again for allowing us to help you take your college savings to the MACS.

Sincerely,

The Mississippi Affordable College Savings Program

¹TIAA-CREF Life Insurance Company is a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (TIAA) that is regulated as a life insurance company in many states, including Mississippi. TIAA-CREF Life is also an affiliate of the Program Manager, TIAA-CREF Tuition Financing, Inc. (TFI). The TIAA-CREF Life Funding Agreement is a general obligation of TIAA-CREF Life to the Board of Directors of the College Savings Plans of Mississippi.

² This guarantee of principal and a minimum rate of return of 3% per year is made to the Mississippi Affordable College Savings Trust Fund by TIAA-CREF Life for the benefit of the Account Owners invested in the Guaranteed Option, but it is not made directly to Account Owners. The most current declared annual rate of return for the TIAA-CREF Life Funding Agreement will be set forth in each quarterly statement and on this website.

³ The return since inception on 3/20/01 is 1.73%. The net annualized current yield for the 7 days ending 12/31/02 is 1.43%. The net annualized effective yield for the 7 days ending 12/31/02 is 1.44%. The underlying Mutual Fund for this Investment Option is the TIAA-CREF Institutional Money Market Fund. An investment in the underlying Mutual Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Mutual Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Mutual Fund. The current yield more closely reflects the Mutual Fund’s current earnings than does the total return. The total returns reflect past performance and are net of management fees. Past performance is not, and should not be viewed as, a guarantee of future results. Total returns and the principal value of investments in your Account can increase and decrease based on the investment performance of the underlying Mutual Funds in which the funds are invested, so your investment may be worth more or less than the original value when you withdraw your money.

----------------------------------------------------------------------------------------------------------

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. It was written to support the promotion of the Mississippi Affordable College Savings plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Consider the investment objectives, risks, charges and expenses before investing in the Mississippi Affordable College Savings plan. For details, refer to the Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributes securities products.

The State of Mississippi, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company’s guarantee to the Mississippi Affordable College Savings plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.