SUBJECT: SECTION 125
CAFETERIA PLAN

Andrews I.S.D. offers a
Section 125 Cafeteria Plan with Flexible Spending arrangements. There are three
areas of participation: (1) tax-sheltered premiums of eligible insurance
premiums, (2) tax-sheltered contributions to a Health Care Reimbursement plan (HCR)
and (3) tax-sheltered contributions to a Dependent Care Benefit plan (DCB).
Employees can take advantage of any or all three of these plans if they are
eligible.

The anniversary date
for participation in the Andrews I.S.D. Section 125 Cafeteria Plan has been
changed to September 1^st of each year. Our third party
administrator is Zesch and Pickett Administrators, Inc. of San Angelo.
Representatives from their company will be on the campuses prior to the deadline
in order to sign up eligible employees.

Any questions
related to the Section 125 Cafeteria Plan should be directed to Zesch &
Pickett. Their
toll-free number is 1-800-259-7302. Their fax number is (915) 655-7245.

If you are a
participant and need an address in order to file a claim, the mailing address
is:

Zesch & Pickett

P.O. Box 431

San Angelo, Texas 76902