Since there are many plans and many companies, the School Board has established guidelines to prevent its costs of providing this type of payroll deduction from becoming excessive. The following guidelines govern the granting of approval for tax sheltered annuity deduction requests. A. October 1, January 1, April 1, and July 1 or the date two weeks following the adoption of an employee's basic salary, are the only acceptable inception and change dates. No changes are permitted on dates other than those stated above. In cases of hardship, annuities may be terminated subject to approval by the Assistant Superintendent for Noninstructional Services.
All new annuities require a monthly allocation and disbursement of contributions.
C. New annuity companies must meet the eligibility requirements of having applications from a minimum of five fully qualified employees. The only exception to the minimum would be for new employees coming into the district who have previously purchased annuities and have made contributions through the district they are leaving. The district will accept tax sheltered annuity contracts with or without life insurance benefits and premium waiver provisions as permitted under the rulings of the Internal Revenue Commissioner. The amount to be withheld from salary and paid for the purchase of an annuity shall not exceed the limitations set by the Internal Revenue Commissioner. The employee and annuity company are responsible for not exceeding the limitation amount.