Section 10-044 Tax Sheltered Annuities

For the purpose of participating in school-sponsored tax-sheltered annuity (TSA) agreements, the following conditions shall be met by the provider and employee.

A. All employees working at least 20 hours per week are eligible to participate in tax-sheltered annuities.

B. The Annuity Provider must complete the district’s Hold Harmless Agreement, Annuity 403(b) Statement of Qualifications and Mutual Funds 403(b)(7) Statement of Qualifications before becoming an annuity provider for the district.

C. A bonafide company wishing to contract with USD 263 employees for tax-sheltered annuities must present signed agreements to participate from a minimum of five (5) eligible USD 263 employees. Tax Sheltered Annuity Agreements shall not be signed by the Payroll Clerk on behalf of the district in the absence of at least five (5) such signed agreements.

D. Annuity agreements for employees transferring into the district will be honored only if the company involved can meet the minimum enrollment of five (5) eligible employees by the end of the enrollment period.

E. Enrollment: To participate in the program, you must complete a Salary Reduction Agreement. These are provided by the annuity company. A participant may file a modified or renewed Salary Reduction Agreement at any time. A Salary Reduction Agreement may also be terminated at any time. Expect the entire process to take approximately four to six weeks.

F. All annuity contracts shall be for an amount not less than $200 per calendar year. The employee may not participate in annuity contracts with more than two (2) companies during the same period of time.

G. The provisions as set forth above shall apply only to tax-sheltered annuities, and shall not apply to other payroll deduction programs effective in USD 263.

Modified by Board 10-26-09