[June 18, 2003]

Beginning in July, UC faculty and staff can participate in a college savings program through payroll deductions.

The Golden State ScholarShare College Savings Trust (ScholarShare) is the state of California’s “529” college savings program, designed to help California families and others save to meet the increasing costs of higher education. ScholarShare participants make contributions on behalf of a designated beneficiary, with no income restrictions or annual contribution limits (maximum lifetime account balance limit is $267,580). The earnings on contributions grow free of California state and federal tax. The money in a ScholarShare account can be used to pay for qualified higher education expenses, including tuition, fees, supplies, certain room and board costs, books, and equipment.

To participate by payroll deduction, UC employees must follow a two-step process.

• First, enroll by completing an account application, which can be submitted online at the Scholarshare website. You must make an initial deposit of $25 or more by check or electronic transfer from your bank.
• Then authorize payroll deduction (a minimum of $15 per investment option per month for each designated beneficiary) by completing a special UC-specific payroll deduction form, also available on the ScholarShare website. The payroll deduction form, called “Golden State ScholarShare College Savings Trust Authorization for Automatic Payroll Deduction (For UC Employees),” must be printed out, completed, and sent to ScholarShare. Employees at the labs cannot use this UC Payroll form. They should contact their Benefits Office for procedures to participate in the ScholarShare program.

For complete program information, see the ScholarShare website or call the ScholarShare toll-free number (1-877-728-4338, available 5 a.m. to 8 p.m. Pacific Time). Please mention that you are a UC employee.

Please note: ScholarShare’s state tax advantages apply only to California state tax. LANL offers a New Mexico 529 program that has tax advantages for New Mexico residents. LANL employees should contact their local Benefits Office for more information. Other employees earning money outside the state of California may want to check their local state for a different 529 plan.

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