ORDER N0. 27309
EMRLOYEE DIRECT DEROSIT/COLLEGE SRVINGS KLAN
On this the 13th day of November 2001, upon motion made by
Commissioner- Baldwin, seconded by Commissioner Williams, that
the Court approved by a vote 3-1, with Commissioner- Letz
opposing, Alliance Capital Employee Direct Deposit Section 529
College Saving Plan, at no cost to Kerr County.
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISII ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCiJMENTS TO RF
REVIEWED BY THE COURT.
MADE BY: ~~`~ 4/Y~ s OFFICE: ll~l(/r T/79~2~CL%~~/~5C/~~i~~
MEETING DATE: ~ Z~ TIME PREFERRED: ~ ~~iOIG~~`L
SUBJECT: (PLEASE BE SPECIFIC) ,~;~y1p/~~~,~F
/ll~~~ ~~J/le~C~} 7'l~V rJ3
~v~2-'ter ~r~=~~s~ S~~T~c~tJ S~?~
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
~~~~
l S r~ltiv5'~s
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is post ~ ' --^~*dance with Title 5, Chapter
551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contn'bute towards you request being addressed at the earliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
5:00 P.M. previous Tuesday ,~ /
A Proposal to Add the Collegel3oundfund, ASection 529 College Savings Plan
As an Additional Employee Benefit at no Cost to Kerr County
By Larry Laws
Investment Advisor Representative
Investment Centers ofAmerica, Inc.
Located in the lobby ojthe Security State Bank & Trust
1130 Junction Hwy
Kerrvi!(e, TX
Summary: We would like to propose that Kerr County include the Collegebovndfund as an additional
employment benefet at no cost to the County. Here's why. As an employer, you already provide employee
benefits that meet two of the keyfrnancial concerns ofmostfamiliestoday- health care and retirement. But
for many families, finding ways to pay for the cost of college has replaced retirement planning as their
number one frnancial priority.
The CollegeBoundjund is a college savings plan that provides tax free money for college. Funds are
invested after tax, grow income tax free, and when used for qualified higher education expenses, earnings
on these accounts aze income tax free. Of all the ways to save for college, [his kind of plan is probably the
most tax efficient, and the most flexible.
You have the opportunity to help your employees to set aside money for college in a systematic, disciplined
savings plan that in many ways can be more cost effective for them than trying to do this on their own. If
they were to set up one of these plan on their own, they could face annual charges of $25.00 per year, plus
as much as 3.5% in up front commissions. liy establishing an employee direct deposit plan for them, you
can help them eliminate these expenses. You as the employer have no risk or obligation other than making
sure the employee deposits are transmitted to a San Antonio processing center monthly. Here are some of
the key benefits.
Taa free earnings growth: There is no federal income tax due on any earnings while they aze in your
CollegeBoundfundoccount.
Taa-free distributions: Distributions for qualified education expenses made after December 31, 2001, are
federal income tax free.
Any institution in the U.S.: Your assets can be used at any accredited institution of higher learning in the
U.S.
No income limits: There are no income limits restricting who is eligible to participate.
Low minimum investments: A minimum of $50.00 per month is all that is required to open an account.
Investment choice: You choose from five investment options managed by Alliance Capital, one of the
world's leading investment managers.
High contribution limit: You can contribute to your account until the total account value equals $264,000
(contributions and earnings).
Employee Direct Deposit Option: For employers who want to provide a valuable employee benefit
funded by employee contributions, an Employee Direct Deposit Option is available with Internet
enrollment and account access.
*Under a "sunset provision", these changes are scheduled to expire on December 31, 2010, in the absence
of re~nactment.Alliance Fund Distributors, Ina. the principal underwriter of the Alliance mutual funds and
an affiliate of Alliance Capital Management, L.P. the manager of the Program and the investment advisor
of the mutual funds, is a member of the NASD. Investment Centers of America, Inc., member NASD, SIPC
does not render tax or legal advice. As with all tax-related decisions, consult with your tax advisor
Investment Products offered * Are not FDIC Insured * May Lose Va1ue* Are Not Bank Guaranteed.
Let's face it .
,An athletic scholarship isn't
going to give him the $250,000
he' 11 need for college.
You are.
-~
Now there's a powerful way to save fo
college. The new 529 CollegeBoundfund`
is open to residents of all 50 states.
It gives you the power of tax-free
earnings growth. The power of no
federal taxes on withdrawals for
qualified educational expenses made
after 12131101.' The power of choice
with five investment options.
The power of ahigh limit on how
much you set aside for your child.
The power of no income limits to
restrict eligibility.
to power ofAlliance Capital, one of the
~rld's premier investment managers.
A small initial investment can get
your child started, and a regular
investmentprogramwill keep him
going all the way to the university.
And if you open aColle~Bound. fwul~'
account, you can also significantly
reduce your taxable estate
nmediately. Learn more by logging
tto collegeboundfund.com.
This way, when it comes time to
payforyourchild'scollegeeducation,
you wont drop the ball.
CollegeBound~'ic~~~l sM
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eso es~so2~
o ~,ct op 4F a rv" rpa
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Alliance Ca ital ~-
41 ~' The Investment ProfissionaPs Choice .~' ~ a"~`
~AL,'pi~'S
' Ueda a "sunset pmvisinn", these changes an: SChednled ~ Q'QI[C nn I)ecemha 3I,ZOIII I(L L{le al>saloeof R~HId('nne[1C
As Wl1h 811 ta%-Ielatted dmcnlu. QNISl1It}OUr tal[adV16nL
Far mcae information, inciudingadesaiption of feed expenses and r'sks, mntactAOiance Capital or ynur finandal mtxesenttive
ppianoePmai I)LStrlUukus, Inc, meldter of NASD.
,yaztagedhyAllianceCapitaland administeredbytheRhode7standHigher Education Assistance
Authorityand the Officeof the CateralTn~surer.
krveahnan Protluels OReretl -Aro Not FDIC mwretl -try loos vwa -Are Na Bank Gaarameatl