529 App Handbook

8/4/2019 529 App Handbook

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NJBEST 529 College Savings PlanNew JerseyFor Account Owners who are, or whose Beneficiaries are, Residents of New Jersey Investing in the New Jersey Better

Educational Savings Trust (NJBEST) Program Without a Financial Advisor

INVESTO

HANDBO

NOV 1, 200


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AS OF THE DATE OF THIS INVESTOR HANDBOOK, THIS INVESTOR HANDBOOK SUPERSEDES ALL PRIOR VERSIONS OF THIS INVESTORHANDBOOK PREVIOUSLY PROVIDED TO ACCOUNT OWNERS INVESTING IN THE INVESTMENT OPTIONS DESCRIBED IN THIS HANDBOOK, UNDERTHE NJBEST 529 COLLEGE SAVINGS PLAN (THE PLAN). THIS INVESTOR HANDBOOK, INCLUDING ANY APPENDICES AND ANY SUPPLEMENTS,

CONTAINS IMPORTANT INFORMATION TO BE CONSIDERED IN MAKING A DECISION TO CONTRIBUTE TO THE PLAN. IT SHOULD BE READTHOROUGHLY IN ITS ENTIRETY AND RETAINED FOR FUTURE REFERENCE.

NO ONE IS AUTHORIZED BY THE NEW JERSEY HIGHER EDUCATION STUDENT ASSISTANCE AUTHORITY (HESAA) TO PROVIDE INFORMATIONOTHER THAN AS CONTAINED IN THIS INVESTOR HANDBOOK AND, IF PROVIDED, SUCH OTHER INFORMATION MUST NOT BE RELIED UPONAS HAVING BEEN AUTHORIZED BY HESAA.

INFORMATION CONTAINED IN THIS INVESTOR HANDBOOK IS BELIEVED TO BE ACCURATE AS OF ITS DATE, BUT IS SUBJECT TO CHANGE WITHOUT

NOTICE AND NEITHER THE DELIVERY OF THE INVESTOR HANDBOOK NOR ACCEPTANCE OF ANY CONTRIBUTION SHALL, IN ANYCIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE PLAN OR IN OTHER MATTERS ADDRESSED IN THISINVESTOR HANDBOOK SINCE ITS DATE.

PLAN ACCOUNTS ARE NOT BANK DEPOSITS AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANYOTHER STATE OR FEDERAL AGENCY. THE VALUE OF ANY PLAN ACCOUNT AT ANY TIME MAY BE MORE OR LESS THAN THE AMOUNT INVESTED

IN THE ACCOUNT.

NONE OF: 1) THE STATE OF NEW JERSEY; 2) HESAA; 3) FRANKLIN TEMPLETON INVESTMENTS OR ANY ENTITY AFFILIATED THEREWITH;

4) ANY CONSULTANT OR ADVISER RETAINED BY ANY SUCH PARTY; OR 5) ANY OTHER PERSON GUARANTEE OR INSURE ANY ACCOUNTS

ESTABLISHED UNDER THE PLAN, THE PRINCIPAL DEPOSITED OR THE INVESTMENT RETURN. OWNERS OF ACCOUNTS IN THE PLAN ASSUMEALL INVESTMENT RISK, INCLUDING THE POTENTIAL LOSS OF PRINCIPAL, AND LIABILITY FOR INCOME TAXES AND/OR ADDITIONAL INCOME

TAXES SUCH AS THOSE LEVIED FOR NON-QUALIFIED WITHDRAWALS.

PARTICIPATION IN THE PLAN DOES NOT GUARANTEE THAT CONTRIBUTIONS AND THE INVESTMENT RETURN ON CONTRIBUTIONS, IF ANY,

WILL BE ADEQUATE TO COVER FUTURE TUITION AND OTHER HIGHER EDUCATION EXPENSES OR THAT A BENEFICIARY WILL BE ADMITTED TOOR PERMITTED TO CONTINUE TO ATTEND AN INSTITUTION OF HIGHER EDUCATION.

THE RELATIVE RISKS AND POTENTIAL REWARDS OF INVESTING UNDER ANY OF THE PLANS INVESTMENT OPTIONS VARY CONSIDERABLY. THISINVESTOR HANDBOOK DOES NOT CONSTITUTE A RECOMMENDATION, AND NO PARTY DESCRIBED HEREIN, BY ITS PARTICIPATION IN THE PLAN

OR OTHERWISE, RECOMMENDS OR INTENDS TO RECOMMEND ANY INVESTMENT BY ANY PARTICULAR ACCOUNT OWNER IN THE PLAN ORIN ANY INVESTMENT OPTION OR COMBINATION OF INVESTMENT OPTIONS. NEITHER THE PLAN NOR ANY OTHER PERSON DESCRIBED IN THISINVESTOR HANDBOOK HAS DETERMINED OR ASSUMED ANY OBLIGATION TO DETERMINE, AS A RESULT OF THE DISTRIBUTION OF THIS INVESTOR

HANDBOOK, WHETHER ANY INVESTMENT BY ANY ACCOUNT OWNER UNDER ANY PARTICULAR INVESTMENT OPTION OR COMBINATIONOF THE INVESTMENT OPTIONS IS SUITABLE OR APPROPRIATE IN LIGHT OF THE NEEDS, FINANCIAL CIRCUMSTANCES AND INVESTMENT HORIZON

OF THE PARTICULAR ACCOUNT OWNER OR BENEFICIARY. ANY ACCOUNT OWNER SEEKING PROFESSIONAL ASSISTANCE IN EVALUATING WHETHERANY PARTICULAR INVESTMENT IN THE PLAN IS SUITABLE OR APPROPRIATE FOR SUCH ACCOUNT OWNER AND/OR A BENEFICIARY SHOULDCONSULT A FINANCIAL ADVISOR.

THE PLAN IS OFFERED TO RESIDENTS OF ALL STATES, ALTHOUGH IN THE CASE OF THE PLAN DESCRIBED IN THIS INVESTOR HANDBOOK

EITHER THE ACCOUNT OWNER OR THE BENEFICIARY OF AN ACCOUNT MUST BE A NEW JERSEY RESIDENT. HOWEVER, YOU SHOULD NOTE

THAT: (i) DEPENDING UPON THE LAWS OF THE HOME STATE OF THE ACCOUNT OWNER OF, THIRD-PARTY CONTRIBUTOR (IF APPLICABLE)

TO OR BENEFICIARY OF THE ACCOUNT, FAVORABLE STATE TAX TREATMENT OR OTHER BENEFITS OFFERED BY THE APPLICABLE HOME

STATE FOR INVESTING IN QUALIFIED TUITION PROGRAMS MAY BE AVAILABLE ONLY FOR INVESTMENTS IN SUCH HOME STATES

QUALIFIED TUITION PROGRAM; (ii) ANY STATE-BASED BENEFIT OFFERED WITH RESPECT TO A PARTICULAR QUALIFIED TUITION

PROGRAM SHOULD BE ONE OF MANY APPROPRIATELY WEIGHTED FACTORS TO BE CONSIDERED IN MAKING AN INVESTMENT DECISION;

AND (iii) THE ACCOUNT OWNER OR (IF APPLICABLE) THIRD-PARTY CONTRIBUTOR SHOULD CONSULT WITH A FINANCIAL, TAX OR OTHER

ADVISER TO LEARN MORE ABOUT HOW STATE-BASED BENEFITS (INCLUDING ANY LIMITATIONS) WOULD APPLY TO THE ACCOUNT OWNERS,THIRD-PARTY CONTRIBUTORS (IF APPLICABLE) AND BENEFICIARYS SPECIFIC CIRCUMSTANCES AND MAY ALSO WISH TO CONTACT THE

HOME STATE OF THE ACCOUNT OWNER, THIRD-PARTY CONTRIBUTOR (IF APPLICABLE) AND BENEFICIARY, OR ANY OTHER QUALIFIED TUITION

PROGRAM, TO LEARN MORE ABOUT THE FEATURES, BENEFITS AND LIMITATIONS OF THE APPLICABLE STATES QUALIFIED TUITION PROGRAM.

QUALIFIED TUITION PROGRAMS, INCLUDING THE PLAN, ARE INTENDED TO BE USED ONLY TO SAVE FOR QUALIFIED HIGHER EDUCATION

EXPENSES. SUCH PROGRAMS ARE NOT INTENDED TO BE USED, NOR SHOULD THEY BE USED, BY ANY TAXPAYER FOR THE PURPOSE OF

EVADING FEDERAL OR STATE TAXES OR TAX PENALTIES. TAXPAYERS MAY WISH TO SEEK TAX ADVICE FROM AN INDEPENDENT TAX ADVISOR

BASED ON THEIR OWN PARTICULAR CIRCUMSTANCES.

INTERESTS IN THE PLAN HAVE NOT BEEN REGISTERED WITH, AND THIS INVESTOR HANDBOOK HAS NOT BEEN REVIEWED BY, THE U.S. SECURITIESAND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION.


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SUPPLEMENT DATED JULY 1, 2010,

TO THE NJBEST 529 COLLEGE SAVINGS PLAN INVESTOR HANDBOOK

DATED NOVEMBER 1, 2009, AS PREVIOUSLY SUPPLEMENTED ON

NOVEMBER 16, 2009, NOVEMBER 25, 2009 AND APRIL 1, 2010

(THE INVESTOR HANDBOOK)

This Supplement updates the Investor Handbook. You should review this information carefully and keep ittogether with your current copy of the Investor Handbook. Any information in the Investor Handbook that

is inconsistent with the information provided in this Supplement is superseded by the information in this

Supplement. Terms that are not otherwise defined in this Supplement have the meaning given to them in the

Investor Handbook. Where applicable, the headings below reference the section of the Investor Handbook

that is being updated.

1. Effective immediately, the following is added to the Investor Handbook:

The Corefolio 529 Portfolio currently invests in the following three mutual funds: Franklin Growth Fund

(50% of assets), Mutual Shares Fund (25% of assets), and Templeton Growth Fund (25% of assets).

As of July 15, 2010, or such later date as it may determine in its discretion, the Program Manager plans to

change the investments of the Corefolio 529 Portfolio by adding Franklin Flex Cap Growth Fund as

a Portfolio investment so that that the Portfolio invests approximately equal amounts in four mutual funds:

Franklin Flex Cap Growth Fund, Franklin Growth Fund, Mutual Shares Fund and Templeton Growth Fund.

2. Effective immediately: (a) under the heading Key Features the first paragraph under the sub-heading

Fees and Expenses, on page 3; and (2) the first paragraph under the heading Fees and Expenses,

on page 31; are both replaced with the following:

Each of the mutual funds in which the Trust invests assets contributed under an Investment Option

charges investment management fees and other expenses. Those fees and expenses are taken into account

in valuing the shares of the mutual funds owned by the applicable Trust Portfolio, and accordingly,

indirectly affect the investment return on amounts invested under the applicable Investment Option.For the Stable Value 529 Portfolio, which currently invests significantly in mutual fund shares wrapped

by book value contracts and may invest in other financial instruments, certain investment advisory,

transactional, wrap agreement and custody fees may be assessed against the Trust Portfolio.

3. As of July 15, 2010, or such later date as the investment allocation of the Corefolio 529 Portfolio is

changed to approximately equal investments in Franklin Flex Cap Growth Fund, Franklin Growth Fund,

Mutual Shares Fund and Templeton Growth Fund (the Effective Date), in the section titled Investment

Options under the heading Type 1 Investment Options: Objective-Based Asset Allocations,

the paragraph titled Corefolio 529 Portfolio is replaced with the following:

Corefolio 529 Portfolio

This allocation is also designed for investors with a longer investment time horizon and/or a highertolerance for risk. Contributions received by the Trust under the Corefolio 529 Investment Option are

invested by the Trust in the Corefolio 529 Portfolio. Assets of this Trust Portfolio will be invested in

approximately equal allocations to four mutual funds that invest in stocks and bonds in the U.S. and

abroad. The Corefolio 529 Portfolios allocation is monitored and rebalanced to adapt to market

movements. This rebalancing feature helps maintain equal exposure to four distinct investment strategies

in any market environment.

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529NJ STK4 07/10

4. As of the Effective Date, in the section titled The Investment Options under the heading

Objective-Based Asset Allocations, the column for Corefolio 529 Portfolio in the table is restated

to read as follows:

5. As of the Effective Date, in the section titled Risk Factors under the heading Portfolio Risks

the paragraph titled Corefolio 529 Portfolio is replaced with the following:

Corefolio 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutual funds

in which it currently invests: credit; derivative securities; foreign securities; growth-style investing;

income; interest rate; liquidity; lower-rated securities; risk arbitrage securities and distressed companies;

sector focus; securities lending; smaller and midsize companies; stocks; and value investing.

6. As of the Effective Date, in the section titled Fees and Expenses, under the headings Fees and Expenses

Chart and Approximate Cost of a $10,000 Investment (pages 3233), the following replace

the portions of the tables for Corefolio 529 Portfolio:

Fees and Expenses Chart

Approximate Cost of a $10,000 Investment

Investment Option

Estimated Underlying Fund

Expenses

Program

Management Fee

Total Annual

Asset-Based Fees

Corefolio 529 Portfolio 0.79% 0.20% 0.99%

Investment Option 1 year 3 years 5 years 10 years

Corefolio 529 Portfolio 101 315 547 1,213

Please keep this supplement for future reference.

Asset Class Mutual Fund Corefolio 529 Portfolio

U.S. Equity Franklin Small-Mid Cap Growth 00.00%

Mutual Shares 25.00%Franklin Growth 25.00%

Franklin Flex Cap Growth 25.00%

Intl Equity Mutual European 00.00%

Templeton Foreign 00.00%

Global Equity Templeton Growth 25.00%

Fixed Income Franklin Strategic Income 00.00%

Franklin Total Return 00.00%

Franklin U.S. Government 00.00%

Franklin Income 00.00%

Money Market Money Market Portfolio 00.00%

Total 100.00%


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SUPPLEMENT DATED APRIL 1, 2010,

TO THE NJBEST 529 COLLEGE SAVINGS PLAN

INVESTOR HANDBOOK DATED NOVEMBER 1, 2009,

AS PREVIOUSLY SUPPLEMENTED ON NOVEMBER 16, 2009, AND NOVEMBER 25, 2009

(THE INVESTOR HANDBOOK)

This Supplement updates the Investor Handbook. You should review this information carefully and keep ittogether with your current copy of the Investor Handbook. Any information in the Investor Handbook that

is inconsistent with the information provided in this Supplement is superseded by the information in this

Supplement. Terms that are not otherwise defined in this Supplement have the meaning given to them in

the Investor Handbook.

Effective immediately, in the section The Investment Options, under the heading Description of the Trust

Portfolios, the text below Age-Based Asset Allocations and above the table is replaced with the following:

You may choose between Age-Based Growth, Moderate and Conservative Asset Allocations and may allocate

contributions among such Age-Based Asset Allocations (i.e., you may invest in more than one such Age-Based

Asset Allocation for a Beneficiary). Each Age-Based Asset Allocation (Growth, Moderate or Conservative)

is made up of Age-Based Investment Portfolios that customize their investments in combinations of mutual

funds based in part on the age of the Beneficiary (see tables below).

Each Age-Based Growth Investment 529 Portfolio has an investment strategy designed for higher potential

return, with greater investment risk, than the investment strategy of the Age-Based Moderate and Conservative

Investment 529 Portfolios corresponding to the same Beneficiary ages. Each Age-Based Moderate Investment

529 Portfolio has an investment strategy designed for potential return, and investment risk, that is less than

that of the investment strategy of the Age-Based Growth Investment 529 Portfolios corresponding to the

same Beneficiary ages, but more than that of the investment strategy of the Age-Based Conservative Investment

529 Portfolios corresponding to the same Beneficiary ages. Each Age-Based Conservative Investment

529 Portfolio has an investment strategy designed for lower investment risk and potential return than the

investment strategy of either the Age-Based Growth or Moderate Investment 529 Portfolios correspondingto the same Beneficiary ages. The absolute and relative levels of risk or return of any Age-Based Investment

529 Portfolio or of any Age-Based Asset Allocation (Growth, Moderate or Conservative) may vary over

different periods of time and may deviate from the intended levels; an Age-Based Investment 529 Portfolio

or Age-Based Asset Allocation may not achieve its risk or return goals and its risk and performance in relation

to other Age-Based Investment 529 Portfolios and Age-Based Asset Allocations may not be as intended.

Although there can be no assurance as to investment results, the Age-Based Investment 529 Portfolios are

designed with the intent that portfolios corresponding to Beneficiary ages closer to college age have less

investment risk than portfolios within the same Age-Based Asset Allocation (Growth, Moderate or

Conservative) corresponding to Beneficiary ages farther from college age. Accordingly, the potential return

of Age-Based Investment 529 Portfolios likewise decreases as the Beneficiary approaches college age.

When the Account is established, the investments will be placed in Age-Based Asset Allocations (Growth,

Moderate or Conservative) you select and within each such allocation will be placed in the Age-Based

Investment 529 Portfolio that corresponds to the age of the Beneficiary (as reported on the completed

application form) on the day the Account is established. A contribution or reallocation to an Age-Based

Investment 529 Portfolio that does not correspond to the Beneficiarys age is not permissible under the Plan.

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Over time, the amount originally invested for a Beneficiary in an Age-Based Investment 529 Portfolio,

together with any subsequent contributions for such Beneficiary in the Age-Based Investment 529 Portfolio

are, as part of a collective transfer of investments for similarly situated Beneficiaries, periodically transferred

to the next Age-Based Investment 529 Portfolio (within the same Age-Based Asset Allocation [Growth,

Moderate or Conservative]) corresponding to the age of each Beneficiary at the time of such transfer (see

chart below for the different Age-Based Investment 529 Portfolios). All accounts in an Age-Based Investment

529 Portfolio with a Beneficiary that has entered a new age bracket as of the transfer date are transferredat approximately the same time, currently once each year (an Age-Based Portfolio Transfer). Because

Age-Based Portfolio Transfers are periodic, the investment for a Beneficiary in an Age-Based Investment

529 Portfolio may remain invested in that portfolio after the time the Beneficiary reaches the age qualifying

for the next Age-Based Investment 529 Portfolio, until the time of the next Age-Based Portfolio Transfer.

Thus, for example, the investment for a Beneficiary who reaches his or her ninth birthday will not be

transferred from the Newborn8 Years 529 Portfolio to the Age 912 Years 529 Portfolio until the date

of the Age-Based Portfolio Transfer following his or her ninth birthday.

If the Beneficiary has attained the age necessary to qualify for the next Age-Based Investment 529 Portfolio

but an Age-Based Portfolio Transfer that would transfer the investment for the Beneficiary into that portfolio

has not yet taken place, you can reallocate the investments for that Beneficiary into that Age-Based Investment

529 Portfolio yourself, however such reallocation will count as the one reallocation permitted per calendaryear (see the section titled Changing Investment Options below).

Age-Based Portfolio Transfers currently take place approximately once per year. The Program Manager

plans to begin making Age-Based Portfolio Transfers approximately once every three months, beginning

in June 2010. The timing and frequency of Age-Based Portfolio Transfers will remain subject to change.

For current information about Age-Based Portfolio Transfers, contact Franklin Templeton Investments

at (866) 362-1597.

The Trust Portfolios are invested in mutual funds that invest in domestic equity securities, international

equity securities, fixed income securities and cash equivalents, as described below. The charts below identify

Trust Portfolios constituting the Age-Based Growth, Moderate and Conservative Asset Allocations, the asset

allocation targets and ranges within each such Trust Portfolio under the current Investment Policy, and theasset classes and mutual funds in which such Trust Portfolios are currently invested. The asset allocation

ranges, the asset allocations within the ranges and the investments of portfolio assets will be reviewed,

and may be adjusted, from time to time in accordance with the Investment Policy.

The Age-Based Investment Options are portfolios of the Trust, and are not registered mutual funds or mutual

funds sponsored by the Franklin Templeton organization.


529NJ STK3 04/10


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SUPPLEMENT DATED NOVEMBER 25, 2009, TO THE

NJBEST 529 COLLEGE SAVINGS PLAN INVESTOR HANDBOOK

DATED NOVEMBER 1, 2009 (THE INVESTOR HANDBOOK)

This Supplement updates the Investor Handbook. You should review this information carefully and keep it

together with your current copy of the Investor Handbook. Any information in the Investor Handbook that is

inconsistent with the information provided in this Supplement is superseded by the information in this

Supplement. Terms that are not otherwise defined in this Supplement have the meaning given to them in theInvestor Handbook. Where applicable, the headings below reference the section and page number of the

Investor Handbook that is being updated.


The UBS S&P 500 Index Fund (the UBS Fund) is a mutual fund in which the S&P 500 Index 529 Portfolio

(the Index Fund Portfolio), a Trust Portfolio of NJBEST 529 College Savings Plan, invests. The UBS Fund

will no longer be available for investment because it is liquidating and closing. As a result, on December 3,

2009 or as soon thereafter as practicable (the Effective Date): (i) assets of the Index Fund Portfolio will cease

to be invested in shares of the UBS Fund and will be invested instead in shares of the JPMorgan Equity Index

Fund, a fund of JPMorgan Trust II (the JPMorgan Fund); and (ii) all references in the Investor Handbook to

the UBS Fund will be revised to refer to the JPMorgan Fund.

2. As of the Effective Date, in the section The Investment Options, the subsection S&P 500 Index 529

Portfolio (on page 15) is replaced with the following:

Contributions received by the Trust under the S&P 500 Index 529 Investment Option are normally invested by

the Trust in the S&P 500 Index 529 Portfolio. The S&P 500 Index 529 Portfolio seeks to replicate the per-

formance of the Standard & Poors 500 Index, before fees and expenses. Assets of the S&P 500 Index 529

Portfolio are normally invested in a mutual fund that is invested in a manner that seeks investment results that

correspond to the aggregate price and dividend performance of securities in the Standard & Poors 500 Index,

before fees and expenses. The mutual fund in which the S&P 500 Index 529 Portfolio is currently invested,

the JPMorgan Equity Index Fund, is managed by JPMorgan Investment Advisors Inc. See Appendix C Description of Mutual Funds in Which Trust Portfolio Assets May Be Invested JPMorgan Equity Index Fund.

3. As of the Effective Date, in the section Risk Factors, in the subsection Individual Portfolios, the

paragraph under the heading S&P 500 Index 529 Portfolio (on page 20) is replaced with the following:

This portfolio is subject to the following types of main investment risks of the underlying mutual fund in which

it currently invests: derivative securities; index tracking; smaller and midsize companies and stocks.

4. As of the Effective Date, in the Fees and Expenses Chart (on page 32), the row for the S&P 500 Index 529

Portfolio is replaced as follows and the footnote below is added:

1

Estimated Underlying Total Annual

Investment Option Fund Expenses Program Management Fee Asset-Based Fees

S&P 500 Index 529 Portfolio 0.20%4 0.40%5 0.60%4

4. As of the Effective Date, based on the estimated underlying fund expenses of the JPMorgan Equity Index Fund, which as of the Effective Date replaced the UBS S&P 500 Index Fundas the underlying fund in which the S&P 500 Index 529 Portfolios assets are invested. The JPMorgan Funds adviser, administrator and distributor (the Service Providers) havecontractually agreed to waive fees and/or reimburse expenses to the extent total annual fund operating expenses (excluding acquired fund fees and expenses, dividend expensesrelating to short sales, interest, taxes and extraordinary expenses and expenses related to the Board of Trustees deferred compensation plan) exceed 0.20% of the average daily net


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assets of the Select Class shares. Amounts in the table reflect such waiver and/or reimbursement. The Service Providers contract continues through 10/31/2010, at which time theService Providers will determine whether or not to renew or revise it. If the contract is not renewed, or is revised, then expenses of the JPMorgan Fund, and of the S&P 500 Index 529Portfolio, would be higher and performance of the portfolio would be correspondingly lower.

5. As of January 1, 2010, or such later date as it may determine in its discretion (Fee Reduction Date), the New Jersey Higher Education Student Assistance Authority (HESAA)plans to reduce the current Program management fee from 0.40% to 0.20%, which would lower the Program management fee shown and the total annual asset-based fees. The feewill remain subject to change without the consent of Account Owners.

5. As of the Effective Date, in the Approximate Cost of a $10,000 Investment chart (on page 33), the row for

the S&P 500 Index 529 Portfolio is replaced as follows and the footnote below is added:

2

Investment Option 1 Year 3 Years 5 Years 10 Years

S&P 500 Index 529 Portfolio1, 2 $41 $128 $224 $505

1. As of the Effective Date, based on the estimated underlying fund expenses of the JPMorgan Equity Index Fund, which as of the Effective Date replaced the UBS S&P 500 Index Fundas the underlying fund in which the S&P 500 Index 529 Portfolios assets are invested. The JPMorgan Funds adviser, administrator and distributor (the Service Providers) havecontractually agreed to waive fees and/or reimburse expenses to the extent total annual fund operating expenses (excluding acquired fund fees and expenses, dividend expensesrelating to short sales, interest, taxes and extraordinary expenses and expenses related to the Board of Trustees deferred compensation plan) exceed 0.20% of the average daily netassets of the Select Class shares. Amounts in the table reflect such waiver and/or reimbursement. The Service Providers contract continues through 10/31/2010, at which time theService Providers will determine whether or not to renew or revise it. If the contract is not renewed, or is revised, then expenses of the JPMorgan Fund, and of the S&P 500 Index 529Portfolio, would be higher and performance of the portfolio would be correspondingly lower.

2. As of the Fee Reduction Date, HESAA plans to reduce the current Program management fee from 0.40% to 0.20%, which would lower the costs shown. The Program managementfee will remain subject to change without the consent of Account Owners.

6. As of the Effective Date, in Appendix C, Description of Mutual Funds in Which Trust Portfolio Assets May

Be Invested, the section titled UBS S&P 500 Index Fund (on pages 56-57) is replaced with the following:

JPMorgan Equity Index Fund

Investment Goal and Main Strategies. This Fund seeks investment results that correspond to the aggregate price

and dividend performance of securities in the Standard & Poors 500 Composite Stock Price Index (Index).

Under normal circumstances, the Fund invests in stocks included in the Index and also may invest in stock

index futures and other equity derivatives. The Funds adviser attempts to track the performance of the Index

to achieve a correlation of at least 0.95 between the performance of the Fund and that of the Index without

taking into account the Funds expenses. Perfect correlation would be 1.00. The percentage of a stock that the

Fund holds will be approximately the same percentage that the stock represents in the Index. The adviser gen-erally picks stocks in the order of their weightings in the Index, starting with the heaviest weighted stock.

Under normal circumstances, at least 80% of the Funds assets will be invested in stocks of companies included

in the Index or indices identified by the Fund and in derivative instruments that provide exposure to stocks of

such companies. Derivatives may be used as substitutes for securities in which the Fund can invest. The Fund

may use derivatives, including futures contracts, options, and swaps, to more effectively gain targeted equity

exposure from its cash positions, to hedge various investments, for risk management and to increase the Funds

gain. The Index is composed of 500 common stocks that are selected by Standard & Poors, a division of The

McGraw-Hill Companies, Inc. (S&P). The Fund is not sponsored, endorsed, sold or promoted by S&P, and

S&P makes no representation regarding the advisability of investing in the Fund. Standard & Poors and

S&P are trademarks of The McGraw-Hill Companies, Inc.

7. Effective immediately, the following information is inserted at the back of the Investor Handbook,

immediately preceding FRANKLIN TEMPLETON PRIVACY POLICY:

Business Continuity Planning Information Notice

At Franklin Templeton Investments (FTI and we/our in this notice), we recognize how heavily our

clients rely on our services. We also recognize that the unexpected can and does occur, from simple outages to

major incidents affecting multiple sites. We have successfully supported critical business activities during


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disruptions of normal business processes from both natural and man-made disasters, including hurricanes,

fires, September 11th and other events. We want you to know that we have plans in place to help safeguard

your assets and protect vital account information in the event of a business disruption.

Franklin Templeton Investments and its affiliated companies, including Fiduciary Trust Company

International, Franklin/Templeton Distributors, Inc., Templeton/Franklin Investment Services, Inc., and

Franklin Templeton Financial Services Corp., (Franklin Templeton) have Crisis Management, Business

Continuity and technology Disaster Recovery plans in place. In addition, Franklin Templeton Investments has

dedicated business continuity planners on staff to assist in preparing and testing of plans.

Franklin Templeton Investments (FTI) Contingency Planning Guidelines

Franklin Templeton plans are developed around specific corporate-wide guidelines. As such, FTI has developed

plans that include the ability to recover from various situations including but not limited to unplanned evacua-

tions, power outages, fire, severe weather, intentional acts, and facilities failures that may cause interruptions

to our business. Our plans are constructed to recover critical functions according to their time criticality. In

order to maintain secure and effective plans, FTI does not provide the specific details in this notice, but you

should be aware that FTIs corporate disaster recovery planning includes the following:

Identification and recovery of mission critical systems to include telecommunications.

Replication, back up and recovery for critical information.

Alternate and redundant communications between Franklin Templeton and its customers.

Alternate communications with and alternate locations for employees.

Regulatory reporting and communications with regulators.

Review of financial and operational risks.

Franklin Templeton Investments Contingency Planning and Business Recovery

Franklin Templeton actively identifies and seeks to mitigate risks to reduce potential issues and their impact.

In the event of an outage or other site-specific problems, Franklin Templeton has plans in place to support

recovery of its critical business systems and functions. In addition to the guidelines stated above, FranklinTempletons recovery plans also include the following:

Designated Contingency Sites and Seamless Client Contact There are pre-established and tested processes

for rerouting of critical telephone and computer systems. Customers should experience minimal downtime in

their ability to contact Franklin Templeton. Within a minimal period of time, customers would be able to

re-attempt contact via published toll free telephone numbers, or the applicable website.

Access to Your Account An outage affecting a given site should not impact your ability to access your

Account, as FTI business continuity plans are designed to help ensure sustained service. However, factors out-

side Franklin Templetons control, such as the market closure which occurred following the September 11th

tragedy, may impact our ability to service our customers.

Please note that Franklin Templeton Investments Business Continuity Plans are reviewed and tested as neces-sary, and at least annually, to ensure they account for technology, business and regulatory changes. The plans

are subject to change, and material changes to our approach will be reflected in an updated Business

Continuity Planning Information Notice that will be posted on our website at franklintempleton.com.

Please keep this supplement for future reference

3


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529NJ STK2 11/09


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Supplement dated November 16, 2009, to

the NJBEST 529 College Savings Plan Investor Handbook

dated November 1, 2009 (the Investor Handbook)

This Supplement updates the Investor Handbook. You should review this information carefully and

keep it together with your current copy of the Investor Handbook. Any information in the Investor

Handbook that is inconsistent with the information provided in this Supplement is superseded by theinformation in this Supplement. Terms that are not otherwise defined in this Supplement have the

meaning given to them in the Investor Handbook. Where applicable, the headings below reference

the section of the Investor Handbook that is being updated.


HESAA plans to:

(i) as of December 11, 2009, or such later date as it may determine in its discretion (Effective

Date), add additional Trust portfolios and rename certain Trust portfolios; and

(ii) as of January 1, 2010, or such later date as it may determine in its discretion (Fee

Reduction Date), reduce the current Program management fee. The fee will remainsubject to change without the consent of Account Owners.

As of the Effective Date:

(i) the Age-Based Investment Portfolios existing prior to the Effective Date will be renamed

the Age-Based Growth Asset Allocation Portfolios as follows and all references in the

Investor Handbook shall be revised accordingly:

Age-Based Growth Asset Allocation Newborn-8 Years 529 Portfolio;

Age-Based Growth Asset Allocation Age 9-12 Years 529 Portfolio;

Age-Based Growth Asset Allocation Age 13-16 Years 529 Portfolio; and

Age-Based Growth Asset Allocation Age 17+ Years 529 Portfolio;

and

(ii) the following additional Age-Based Investment Portfolios will be added to the program:

Age-Based Moderate Asset Allocation Newborn-8 Years 529 Portfolio;

Age-Based Moderate Asset Allocation Age 9-12 Years 529 Portfolio;

Age-Based Moderate Asset Allocation 13-16 Years 529 Portfolio;

Age-Based Moderate Asset Allocation 17+ Years 529 Portfolio;

Age-Based Conservative Asset Allocation Newborn-8 years 529 Portfolio;

Age-Based Conservative Asset Allocation Age 9-12 years 529 Portfolio;

Age-Based Conservative Asset Allocation 13-16 years 529 Portfolio; and

Age-Based Conservative Asset Allocation 17+ years 529 Portfolio.

1


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2. As of the Fee Reduction Date, in the section Key Features, the second paragraph under the

heading Fees and Expenses is replaced with the following:

The Program also charges a management fee that is currently 20 basis points (0.20 percent)

per annum assessed daily against the assets of each Trust Portfolio. This fee is subject to

change without the consent of the Account Owners. Please see Fees and Expenses for

additional information.

3. As of the Effective Date, in the section The Investment Options, under the heading Description

of the Trust Portfolios, the section Age-Based Investment Portfolios or Age-Based Asset

Allocations is replaced with the following:

Age-Based Asset Allocations

You may choose between Age-Based Growth, Moderate and Conservative Asset Allocations

and may allocate contributions between them (you may invest in more than one such Age-Based

Asset Allocation for a Beneficiary). Each Age-Based Asset Allocation (Growth, Moderate or

Conservative) is made up of Age-Based Investment Portfolios that customize their investments

in combinations of mutual funds based in part on the age of the Beneficiary (see tables below).

Each Age-Based Growth Investment 529 Portfolio has an investment strategy involving higherpotential return, with greater investment risk, than the investment strategy of the Age-Based

Moderate and Conservative Investment 529 Portfolios corresponding to the same Beneficiary

ages. Each Age-Based Moderate Investment 529 Portfolio has an investment strategy involving

potential return, and investment risk, that is less than that of the investment strategy of the

Age-Based Growth Investment 529 Portfolios corresponding to the same Beneficiary ages,

but more than that of the investment strategy of the Age-Based Conservative Investment

529 Portfolios corresponding to the same Beneficiary ages. Each Age-Based Conservative

Investment 529 Portfolio has an investment strategy involving lower investment risk and

potential return than the investment strategy of either the Age-Based Growth or Moderate

Investment 529 Portfolios corresponding to the same Beneficiary ages. There is no assurance

as to the actual risk or return of any Age-Based Investment 529 Portfolio or of any Age-BasedAsset Allocation (Growth, Moderate or Conservative); they may not achieve their risk or return

goals and their risk and performance in relation to other Age-Based Investment 529 Portfolios

and Age-Based Asset Allocations may not be as intended.

Although there can be no assurance as to investment results, the Age-Based Investment 529

Portfolios are designed with the intent that portfolios corresponding to Beneficiary ages closer to

college age have less investment risk than portfolios within the same Age-Based Asset Allocation

(Growth, Moderate or Conservative) corresponding to Beneficiary ages farther from college age.

Accordingly, the potential return of Age-Based Investment 529 Portfolios likewise decreases as

the Beneficiary approaches college age.

When the Account is established, the investments will be placed in Age-Based Asset Allocations(Growth, Moderate or Conservative) you select and within each such allocation will be placed

in the Age-Based Investment 529 Portfolio that corresponds with the age of the Beneficiary

(as reported on the completed application form) on the day the Account is established. As a

Beneficiary ages, the amounts previously invested for such Beneficiary in the Age-Based

2


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Investment 529 Portfolio, together with any new contributions for such Beneficiary in the

Age-Based Investment 529 Portfolio, are transferred automatically to the Age-Based Investment

529 Portfolio within the same Age-Based Asset Allocation (Growth, Moderate or Conservative)

corresponding to the Beneficiarys age bracket, as detailed in the chart below. Such automatic

transfers from one Age-Based Investment 529 Portfolio to a different Age-Based Investment

529 Portfolio within the same Age-Based Asset Allocation (Growth, Moderate or Conservative)

take place once per year, at which time all applicable accounts in an Age-Based Investment529 Portfolio with a Beneficiary that has entered a new age bracket as of the transfer date are

transferred to the Age-Based Investment 529 Portfolio within the same Age-Based Asset Allocation

(Growth, Moderate or Conservative) applicable to such new age bracket. A contribution or

reallocation to an Age-Based Investment 529 Portfolio that does not correspond with the

Beneficiarys age is not permissible under the Plan. The Trust Portfolios are invested in mutual

funds that invest in domestic equity securities, international equity securities, fixed income

securities and cash equivalents, as described below.

The charts below identify Trust Portfolios constituting the Age-Based Growth, Moderate and

Conservative Asset Allocations, the asset allocation targets and ranges within each such Trust

Portfolio under the current Investment Policy, and the asset classes and mutual funds in which

such Trust Portfolios are currently invested. The asset allocation ranges, the asset allocationswithin the ranges and the investments of portfolio assets will be reviewed, and may be adjusted,

from time to time in accordance with the Investment Policy.

The Age-Based Investment Options are portfolios of the Trust, and are not registered mutual

funds or mutual funds sponsored by the Franklin Templeton organization.

3

Age-Based Growth Asset Allocations

(including range of variability within each Asset Class under Investment Policy)

Asset Class Mutual FundsGrowth

Newborn8 yearsGrowth

Age 912 yearsGrowth

Age 1316 yearsGrowth

Age 17+ years

U.S. Equity Franklin Small-Mid Cap Growth 25.00% 18.75% 12.50% 6.25%Mutual Shares 20.00% 15.00% 10.00% 5.00%

Franklin Flex Cap Growth 25.00% 18.75% 12.50% 6.25%

(range of variability) (+/-5.00%) (+/-5.00%) (+/-5.00%) (+/-5.00%)

International

Equity

Mutual European 15.00% 11.25% 7.50% 3.75%

Templeton Foreign 15.00% 11.25% 7.50% 3.75%


Fixed

Income

Franklin Strategic Income 0.00% 5.00% 10.00% 15.00%

Franklin Total Return 0.00% 5.00% 10.00% 15.00%

Franklin U.S. Government 0.00% 10.00% 20.00% 30.00%

(range of variability) (+/-5.00%) (+/-5.00%) (+/-5.00%) (+/-5.00%) Money

Market

Money Market Portfolio 0.00% 5.00% 10.00% 15.00%


Total 100.00% 100.00% 100.00% 100.00%


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4

Age-Based Moderate Asset Allocations


Asset Class Mutual FundsModerate

Newborn8 yearsModerate

Age 912 yearsModerate

Age 1316 yearsModerate

Age 17+ years

U.S. Equity Franklin Small-Mid Cap Growth 18.75% 12.50% 6.25% 0.00%

Mutual Shares 15.00% 10.00% 5.00% 0.00%



International

Equity

Mutual European 11.25% 7.50% 3.75% 0.00%



Fixed

Income





Money

Market



Total 100.00% 100.00% 100.00% 100.00%

Age-Based Conservative Asset Allocations


Asset Class Mutual FundsConservative

Newborn8 yearsConservative

Age 912 yearsConservative

Age 1316 yearsConservative

Age 17+ years

U.S. Equity Franklin Small-Mid Cap Growth 12.50% 6.25% 0.00% 0.00%

Mutual Shares 10.00% 5.00% 0.00% 0.00%



International

Equity

Mutual European 7.50% 3.75% 0.00% 0.00%



Fixed

Income





Money

Market



Total 100.00% 100.00% 100.00% 100.00%


15/92

4. As of the Effective Date, in the section Risk Factors, under Specific Investment Risks andthe heading Portfolio Risks, the section Age-Based Investment Portfolios is replaced withthe following:


The risk and reward profiles of the Age-Based Asset Allocations vary with the age of theBeneficiary, with the risk and return potential expected to be the highest at the youngest ageand the lowest when the Beneficiarys age is 17 and above. The asset allocation in the Age-BasedInvestment Portfolios is based on the age of the Beneficiary and on the assumption that the assetsin the Account will be used to pay for the qualified higher education costs of the Beneficiaryduring a time period in which individuals of the Beneficiarys age normally attend college. If yourBeneficiary attends college during an earlier or later time period than that in which individualsof your Beneficiarys age normally attend college, the asset allocation of amounts invested foryour Beneficiary in the Age-Based Asset Allocations may not be appropriate for your Beneficiary.

Growth Age-Based Asset Allocations

Age-Based Growth Asset Allocation Age Newborn8 Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutual

funds in which it currently invests: country or regional focus; credit; derivative securities; foreignsecurities; growth-style investing; income; interest rate; liquidity; lower-rated debt securities;risk arbitrage securities and distressed companies; sector focus; smaller and midsize companies;stocks; and value investing.

Age-Based Growth Asset Allocation Age 912 Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loanrisk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securitiesand asset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies;sector focus; smaller and midsize companies; stocks; U.S. government securities; and value investing.

Age-Based Growth Asset Allocation Age 1316 Years 529 Portfolio


Age-Based Growth Asset Allocation Age 17+ years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loanrisk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securities

5


16/92

and asset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies;sector focus; smaller and midsize companies; stocks; U.S. government securities; and value investing.


Age-Based Moderate Asset Allocation Age Newborn8 Years 529 Portfolio


funds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loanrisk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securitiesand asset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies;sector focus; smaller and midsize companies; stocks; U.S. government securities; and value investing.

Age-Based Moderate Asset Allocation Age 912 Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loan

risk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securitiesand asset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies;sector focus; smaller and midsize companies; stocks; U.S. government securities; and value investing.

Age-Based Moderate Asset Allocation Age 1316 Years 529 Portfolio


Age-Based Moderate Asset Allocation Age 17+ Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; credit; convertible securities; credit-linked securities;current credit market conditions; derivative securities; foreign securities; floating rate corporateloans; Ginnie Maes; income; interest rate; loans; lower-rated securities; master/feeder structure;mortgage dollar rolls; mortgage securities and asset-backed securities; and portfolio turnover.


Age-Based Conservative Asset Allocation Age Newborn8 Years 529 Portfolio


funds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loanrisk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securities

6


17/92

and asset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies;sector focus; smaller and midsize companies; stocks; U.S. government securities; and value investing.

Age-Based Conservative Asset Allocation Beneficiary Age: 912 Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; convertible securities; country or regional focus; credit;credit-linked securities; current credit market conditions; derivative securities; floating rate corporateloans; foreign securities; Ginnie Maes; growth-style investing; income; interest rate; liquidity; loanrisk; lower-rated securities; master/feeder structure; mortgage dollar rolls; mortgage securities andasset-backed securities; portfolio turnover; risk arbitrage securities and distressed companies; sectorfocus; smaller and midsize companies; stocks; U.S. government securities; and value investing.

Age-Based Conservative Asset Allocation Beneficiary Age 1316 Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: call; credit; convertible securities; credit-linked securities;current credit market conditions; derivative securities; foreign securities; floating rate corporateloans; Ginnie Maes; income; interest rate; loans; lower-rated securities; master/feeder structure;mortgage dollar rolls; mortgage securities and asset-backed securities; and portfolio turnover.

Age-Based Conservative Asset Allocation Age 17+ Years 529 Portfolio

This portfolio is subject to the following types of main investment risks of the underlying mutualfunds in which it currently invests: credit; income; interest rate; and master/feeder structure.

5. As of the Fee Reduction Date, the second paragraph in the section Fees and Expenses isreplaced with the following:

The investment return on contributions to an Account also will be affected by the Programmanagement fee which is assessed against the assets of each Trust Portfolio. The Programmanagement fee is currently 20 basis points (0.20 percent) per annum assessed daily againstthe assets of each Trust Portfolio. The Program management fee is used to pay for the servicesof FTDI, Franklin Advisers and other FTDI subcontractors under the Services Agreement, as

well as to pay HESAA for its services in connection with the Program. The Program managementfee is subject to change by HESAA at any time without the consent of Account owners.

6. As of the Effective Date, in the section Fees and Expenses, the Fees and Expenses Chart, the

Approximate Cost of a $10,000 Investment chart and surrounding text is replaced with the

following:

As of the Fee Reduction Date, the Program management fee will be reduced from 0.40% to0.20%. The reduced Program management fee of 0.20% is shown in the Fees and ExpensesChart and reflected in the Approximate Cost of a $10,000 Investment chart below. Prior tothe Fee Reduction Date, the Program management fee will continue to be 0.40%, includingfor new Age-Based Asset Allocation Portfolios added as of the Effective Date, to the extentthat the Effective Date precedes the Fee Reduction Date. The existing Program management

fee of 0.40% would result in higher Total Annual Asset-Based Fees and costs of a $10,000investment than those shown below. The Program management fee is subject to change byHESAA at any time without the consent of Account owners.

7


18/92

1. In periodsof market volatility,assetsmay decline significantly,causing estimated underlyingfund expenses andtotalannual asset-based feesto becomehigher than the numbers shown in the table above.

2. For registered mutual funds, based on most recent fiscal annual or semiannual period reported upon in the applicable funds most recent financialstatements that were publicly available by June 30, 2009, and for Investment Options invested in multiple registered mutual funds, based on a weightedaverage of each funds expense ratio, in accordance with the Investment Options average monthly asset allocation among the applicable funds. Underlyingfund expenses will vary and in some cases have been, and may from time to time be, reduced by fee and expense waivers or reimbursements, which maybe ended at any time.

For registered mutual funds, based on most recent fiscal annual or semiannual period reported upon in the applicable funds most recent financialstatements that were publicly available by June 30, 2009, and for Investment Options invested in multiple registered mutual funds, based on a weightedaverage of each funds expense ratio, in accordance with the Investment Options average monthly asset allocation among the applicable funds. Underlyingfund expenses will vary and in some cases have been, and may from time to time be, reduced by fee and expense waivers or reimbursements, which maybe ended at any time.

3. For the Stable Value 529 Portfolio, the current Estimated Underlying Fund Expenses include 0.46% in estimated underlying fund expenses and 0.10% insub-advisory fees paid to Dwight Asset Management, Inc. Because the Stable Value 529 Portfolio may invest in securities other than mutual funds, it mayfrom time to time incur other expenses, such as investment advisory fees, which could impact its total annual asset-based fees.

Fees and Expenses Chart1

8

Investment Option

Estimated

Underlying

Fund

Expenses2

Program

Management

Fee

Total Annual

Asset-Based

Fees


Growth Age-Based Asset Allocations

Age-Based Growth Asset Allocation Newborn8 Years 529 Portfolio 0.87% 0.20% 1.07%

Age-Based Growth Asset Allocation Age 912 Years 529 Portfolio 0.76% 0.20% 0.96%

Age-Based Growth Asset Allocation Age 1316 Years 529 Portfolio 0.68% 0.20% 0.88%

Age-Based Growth Asset Allocation Age 17+ Years 529 Portfolio 0.63% 0.20% 0.83%

Moderate Age-Based Asset Allocations

Age-Based Moderate Asset Allocation Newborn8 Years 529 Portfolio 0.79% 0.20% 0.99%

Age-Based Moderate Asset Allocation Age 912 Years 529 Portfolio 0.71% 0.20% 0.91%

Age-Based Moderate Asset Allocation Age 1316 Years 529 Portfolio 0.63% 0.20% 0.83%

Age-Based Moderate Asset Allocation Age 17+ Years 529 Portfolio 0.56% 0.20% 0.76%

Conservative Age-Based Asset Allocations

Age-Based Conservative Asset Allocation Newborn8 Years 529 Portfolio 0.71% 0.20% 0.91%

Age-Based Conservative Asset Allocation Age 912 Years 529 Portfolio 0.63% 0.20% 0.83%

Age-Based Conservative Asset Allocation Age 1316 Years 529 Portfolio 0.56% 0.20% 0.76%

Age-Based Conservative Asset Allocation Age 17+ Years 529 Portfolio 0.39% 0.20% 0.59%

Objective-Based Asset Allocations

Corefolio 529 Portfolio 0.79% 0.20% 0.99%

Growth 529 Portfolio 0.86% 0.20% 1.06%

Growth & Income 529 Portfolio 0.71% 0.20% 0.91%

Income 529 Portfolio 0.56% 0.20% 0.76%

Individual Portfolios

S&P 500 Index 529 Portfolio 0.45% 0.20% 0.65%

Stable Value 529 Portfolio 0.56%3 0.20% 0.76%


19/92

9

The following table compares the approximate cost of investing in the Plan over differentperiods of time. Your actual cost may be higher or lower. The table is based on the followingassumptions:

A $10,000 investment invested for the time periods shown.

A 5% annually compounded rate of return on the amount invested throughout the period.

All units are redeemed at the end of the period shown for qualified higher educationexpenses (the table does not consider the impact of any potential state or federal taxes onthe redemption).

Total annual asset-based fees that are the same as those shown in the table above, reflectinga Program management fee of 20 basis points (0.20 percent) per annum assessed daily againstthe assets of each Trust Portfolio, as is the case after the Fee Reduction Date. Prior to the FeeReduction Date, the Program management fee is 40 basis points (0.40 percent) per annum.

Approximate Cost of a $10,000 Investment

Investment Option 1 Year 3 Years 5 Years 10 Years

Age-Based Growth Allocations

Age-Based Growth Asset AllocationsAge-Based Growth Asset Allocation Newborn8 Years 529 Portfolio $109 $340 $590 $1,306

Age-Based Growth Asset Allocation Age 912 Years 529 Portfolio $98 $306 $531 $1,178

Age-Based Growth Asset Allocation Age 1316 Years 529 Portfolio $90 $281 $488 $1,084

Age-Based Growth Asset Allocation Age 17+ Years 529 Portfolio $85 $265 $460 $1,025


Age-Based Moderate Asset Allocation Newborn8 Years 529 Portfolio $101 $315 $547 $1,213

Age-Based Moderate Asset Allocation Age 912 Years 529 Portfolio $93 $290 $504 $1,120

Age-Based Moderate Asset Allocation Age 1316 Years 529 Portfolio $85 $265 $460 $1,025

Age-Based Moderate Asset Allocation Age 17+ Years 529 Portfolio $78 $243 $422 $942


Age-Based Conservative Asset Allocation Newborn8 Years 529 Portfolio $93 $290 $504 $1,120

Age-Based Conservative Asset Allocation Age 912 Years 529 Portfolio $85 $265 $460 $1,025

Age-Based Conservative Asset Allocation Age 1316 Years 529 Portfolio $78 $243 $422 $942

Age-Based Conservative Asset Allocation Age 17+ Years 529 Portfolio $60 $189 $329 $738

Objective-Based Asset Allocations

Corefolio 529 Portfolio $101 $315 $547 $1,213

Growth 529 Portfolio $108 $337 $585 $1,294

Growth & Income 529 Portfolio $93 $290 $504 $1,120

Income 529 Portfolio $78 $243 $422 $942

Individual Portfolios

S&P 500 Index 529 Portfolio $66 $208 $362 $810

Stable Value 529 Portfolio $78 $244 $424 $946


20/92

10

7. As of the Effective Date, the following is added to the end of Appendix B:

Absence of Past Performance Data for Age-Based Moderate and Conservative Investment Portfolios

Because the Age-Based Moderate and Conservative Asset Allocation Portfolios will be newly

established as of the Effective Date, past performance information for them is not yet available.

In the absence of past performance information for these Trust portfolios, the past performance

information of the mutual funds (funds) in which they invest may be of interest to Contributorsin selecting among Investment Options and is provided below. The performance of any mutual

fund or group of mutual funds may be expected to vary over time, both in relation to the

performance of other mutual funds or groups of mutual funds over a comparative period of time

and absolutely. The past performance of any particular fund does not represent the performance

information of any Trust portfolio, or of any portion of a Trust portfolio invested in such fund.

The inclusion of past performance information below is for reference only and is not intended

as a projection of future results. Investment return and principal value will fluctuate with market

conditions, and the Trust portfolios investing in such funds may have a gain or loss when they

sell their shares. Past performance does not guarantee future results.

The past performance shown for the funds is the performance of the funds Advisor or Z Class

shares (or, for the Money Market Portfolio, Class A shares or their equivalent), as applicable,the class of shares in which the Trust portfolios invest. The performance information does not

reflect the effect of any of the fees and expenses of the Trust portfolios, which include a Program

management fee of 40 basis points (0.40 percent) per annum prior to the Fee Reduction Date,

which is planned to be reduced to 20 basis points (0.20 percent) per annum beginning on the

Fee Reduction Date (the Program management fee is subject to change without the consent of

the Account Owners) and other charges that would lower the performance of the portion of any

Trust portfolio invested in the applicable fund relative to the performance shown for such fund.

Shares in the funds are not offered to Contributors under this Investor Handbook, and

Contributors to any Investment Option under the Program do not acquire shares in the funds.

The investments of any Trust portfolio may change from time to time in accordance with thePrograms Investment Policy without the consent of Contributors, and the funds will not

necessarily remain investments of the Trust portfolio(s) in which your contributions are

invested during the term of your Account.

Ongoing market volatility can dramatically impact the funds short-term returns. Current

performance may differ from the figures shown. Although fund shares are not being offered

under this Investor Handbook, if you desire more information on any funds in connection with

your consideration of an investment in the Program, contact the Program Manager for a free

prospectus which contains more complete fund information including expense, performance

and risk considerations.

Advisor and Z Class shares are only offered to certain eligible investors, including the Trust, as

stated in the funds prospectuses. They are offered without sales charges or Rule 12b1 fees.

Performance quotations for Advisor Class shares reflect the following methods of calculation:

(a) for periods prior to a funds Advisor Class inception date, a restated figure is used based

on the performance of the funds oldest share class (Class A), excluding the effect of Class As


21/92

maximum initial sales charge but reflecting the effect of the Class A Rule 12b1 fees; and (b) for

periods after the funds Advisor Class inception date, actual Advisor Class performance is used,

reflecting all charges and fees applicable to that class.

For performance reporting purposes, the inception date for Advisor or Z Class shares (and for

the Money Market Portfolio, Class A shares or their equivalent) of all Franklin Templeton

funds is the date of effectiveness of the funds registration statement or the first day the fund

commenced operations.

Average annual total returns represent the average change in value of an investment on an

annualized basis and assume reinvestment of capital gains, dividends and interest income.

Figures have been calculated at net asset value and before taxes.

Shares of the Money Market Portfolio are Class A shares or their equivalent; like the Advisor

and Z Class shares, they do not assess Rule 12b1 fees or sales charges. An investment in a money

market fund, such as the Money Market Portfolio, is neither insured nor guaranteed by the

U.S. government or by any other entity or institution. There is no assurance the $1.00 share price

will be maintained, thus it is possible for a Trust portfolio investing in the fund to lose money.

11

Average Annual Total Return as of September 31, 2009

1 year % 5 year % 10 year %

Since

Inception %

Fund

Inception

Date

Franklin Flex Cap Growth Fund -3.02 2.98 3.36 10.90 8/02/04

Franklin Small-Mid Cap Growth Fund -1.10 3.18 2.77 9.70 1/02/97

Franklin Strategic Income Fund 15.23 6.02 7.28 8.00 9/01/99

Franklin Total Return Fund 13.09 4.43 6.09 5.75 8/03/98

Franklin U.S. Government Securities Fund 8.63 5.18 5.78 7.00 1/02/97

Money Market Portfolio 0.36 3.07 3.00 4.48 7/17/85

Mutual European Fund 5.76 10.33 11.65 13.13 7/03/96Mutual Shares Fund -4.90 2.31 5.58 13.14 7/01/49

Templeton Foreign Fund 13.10 7.59 6.18 12.06 1/02/97



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529NJ STK1 11/09


23/92

Table of Contents

Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Key Features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Overview of the Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Overview of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

The Investment Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Federal and New Jersey Income Tax Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Special Gift and Estate Tax Treatment While Investing for College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Control over Your Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Low Contribution Requirement and High Contribution Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Opening, Maintaining and Contributing to an Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Account Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Third-Party Contributor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Accounts Established under UTMA or UGMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Opening an Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Applicable Trust Share Net Asset Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Contributing to an Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Franklin Templeton 529 Plan and Division Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Transfers and Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Changing a Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Member of the Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Change in Account Owner; Successor Account Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Transfers to the Franklin Templeton Investment Options from the Division Investment Options . . . . . . . . . . . . . . . 8

Telephone/Online Privileges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Legal Restrictions on Use of Plan Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Community Property Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Qualified Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Non-Qualified Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


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Table of Contents

The Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Description of the Trust Portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Changing Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Investment Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Historical Performance Data for Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

General Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Exposure to Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Limited Operating History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

General Investment Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Specific Investment Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

A. Portfolio Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

B. Types of Investment Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Change in Investment Policy, Program Manager or Investment Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Restriction on Changes among Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Financial Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Tax Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Program Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Amount of and Inflation in Qualified Higher Education Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Non-Use by Beneficiary of Account for Qualified Higher Education Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Risks Related to Illiquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Impact on Medicaid Eligibility and Other Non-Educational Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Alternative Investment Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Other Compensation to Program Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Actions with Respect to the Stable Value 529 Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Fees and Expenses Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Approximate Cost of a $10,000 Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

NJBEST Scholarship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33


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Table of Contents

Program Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

The New Jersey Higher Education Student Assistance Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

New Jersey Division of Investment and State Investment Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Franklin Templeton Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Federal Tax Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Future Regulatory Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Accounts Established by Business Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Unrelated Business Taxable Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

State Income Tax Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Tax Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Reporting and Other Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Account Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Audited Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Tax Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Continuing Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Securities Investor Protection Corporation (SIPC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Obtaining Additional Information; Program Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Appendix A Participation Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Appendix B Historical Performance of the Trust Portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Appendix C Description of Mutual Funds in Which Trust Portfolio Assets May Be Invested . . . . . . . . . . . . . . . . . 52

Appendix D NJBEST Scholarship Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58


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27/92

Glossary of Terms

2001 Tax Act Economic Growth and Tax Relief Reconciliation Act of 2001.

Account an account within the Plan.

Account Owner the current owner of an account within the Plan, who may be either the person who

established the Account or a successor Account Owner.

Act N.J.S.A 18A:71B-35 through 46, as amended.

Beneficiary the current individual whom the Account Owner has designated as the beneficiary of the Account.

Code Internal Revenue Code of 1986, as amended.

Company collectively, Franklin Resources, Inc. and certain of its subsidiaries, including Franklin Advisers,

Inc., Franklin Templeton Distributors, Inc. and Franklin Templeton Services, LLC.

Coverdell ESA Coverdell Education Savings Account established under Section 530 of the Code.

Division of Investment New Jersey Department of the Treasury, Division of Investment.

Division Investment Options investment options for which the New Jersey Department of the Treasury,

Division of Investment serves as investment manager.

Eligible Educational Institution defined generally as accredited post-secondary educational institutions

located in the United States offering credit toward a bachelors degree, an associates degree, a graduate level or

professional degree, or another recognized post-secondary credential; however, certain proprietary institutions

and post-secondary vocational institutions and certain institutions located in foreign countries may be Eligible

Educational Institutions. To be an Eligible Educational Institution for purposes of Section 529, the institution

must be eligible to participate in U.S. Department of Education student financial aid and student loan programs

under Title IV of the Higher Education Act of 1965, as amended.

FDIC Federal Deposit Insurance Corporation.

Financial Advisors certain broker-dealers or financial advisors.

Franklin Advisers Franklin Advisers, Inc., an affiliate of Franklin Templeton Distributors, Inc. serving as the

Investment Manager for the Investment Options.

Franklin Templeton Investment Options Investment Options for which Franklin Advisers currently serves as

Investment Manager, including the Investment Options described in this Investor Handbook.

Franklin Templeton Investments a group of affiliated companies owned directly or indirectly by Franklin

Resources, Inc.

FTDI Franklin Templeton Distributors, Inc., the Program Manager.

FTIS Franklin Templeton Investor Services, LLC, an affiliate of FTDI retained by FTDI to provide the

administrative and record-keeping services for which FTDI is responsible under the Services Agreement.

Grandfathered Accounts certain Program Accounts established prior to the expiration or termination of the

Services Agreement.


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Glossary of Terms

HESAA The New Jersey Higher Education Student Assistance Authority.

Investment Manager an investment manager selected by HESAA, including Franklin Advisers or any succes-

sor as the Investment Manager.

Investment Option the designation of a contribution received by the Trust to a particular trust portfolio and

the resulting investment of such contribution.

Investment Policy the applicable requirements of the investment policy established by HESAA with the

approval of the State Investment Council.

Investor Handbook this document, including any future supplements to it, which contain information you

should know, such as certain risks, limitations, performance history and fees, before you participate in the Plan.

IRS Internal Revenue Service.

Maximum Contribution Limit the aggregate balance in all Program Accounts on behalf of a particularBeneficiary which may not be exceeded through additional contributions (currently $305,000).

Member of the Family (for purposes of Section 529) a person related to the Beneficiary as follows: (i) a son

or daughter, or a descendant of either; (ii) a stepson or stepdaughter; (iii) a brother, sister, stepbrother or stepsis-

ter; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a

brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-

law, mother-in-law, brother-in-law, or sister-in-law; (ix) the spouse of the Beneficiary or of any of the other

foregoing individuals; or (x) a first cousin. For purposes of the member of the family definition, a child

includes a legally adopted child and a brother or sister includes a brother or sister by half-blood.

NAV net asset value.

Non-Qualified Distribution a withdrawal of money from an Account for any purpose other than to pay the

qualified higher educational expenses of the Beneficiary at an Eligible Educational Institution.

NJBEST the New Jersey Better Educational Savings Trust.

NRMSIR Nationally Recognized Municipal Securities Information Repository.

Plan the NJBEST 529 College Savings Plan.

Program the New Jersey Better Educational Savings Trust (NJBEST) Program, which includes both the

Franklin Templeton 529 College Savings Plan and the Plan.

Program Accounts Accounts within the Program.

Program Manager FTDI or any successor as the Program Manager.

Program Record-Keeper FTIS or any successor as the Program Record-Keeper.

Qualified Distribution a distribution from an Account to pay the qualified higher education expenses of the

Beneficiary at an Eligible Educational Institution.


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Glossary of Terms

Qualified higher education expenses (i) the costs of tuition, fees books, supplies and equipment required for

the enrollment or attendance of a Beneficiary at an Eligible Educational Institution; (ii) expenses for room and

board, within certain limits, for students attending an Eligible Educational Institution on at least a half-timebasis; (iii) certain expenses for special needs services for special needs beneficiaries incurred in connect

529 App Handbook

Documents

Transcript of 529 App Handbook