6001 Tax Deferred Annuity/Compensation
-
The board of directors may contract with an eligible employee to defer any portion of their compensation at an eligible employee’s direction, the district may provide for participation in a tax deferred annuity program, as defined by Section 403(b) and 403(b)(7) of the Internal Revenue Code of 1986 as amended.
Upon receipt of all documents required by the school district under the administrative procedure for tax deferred annuities, the board will enter into a tax deferred annuity contract when five or more eligible employees request a contract with a company of the employee’s choice.
The superintendent or designee is directed to create a tax deferred annuity program at the request of five or more eligible employees. Procedures shall address:- Employee responsibilities for carrying out the deferred annuity program.
- How and when employees can be contacted by representatives of the companies that comply with all of the requirements set forth in the administrative procedures.
- The assurance that the school district shall be held harmless for any actions occurring after the authorized funds have been disbursed to the company designated by the employee.
- The employee’s responsibility for determining that the disbursement does not exceed the limits set forth in applicable law.
Legal References:
RCW 28A.400.250 Tax deferred annuities
ADOPTED: 05/27/1999
Procedure No. 6001P Tax Deferred Annuity/Compensation
Eligible employees may elect to defer a portion of their salary or wages to pay for a tax deferred annuity. Eligible employees may make their deferral arrangements with any district authorized insurance company or mutual fund (both hereinafter referred to as “Service Provider”). A Service Provider may be authorized if five or more eligible employees request the district to enter into a contract with an insurance company offering a tax deferred annuity contract and licensed to do business in the State of Washington or a mutual fund that provides custodial contracts for tax deferred annuity programs, and complies with all district policies and procedures. The following are procedures pertaining to staff participation, hold harmless agreements, and sales representation contacts:- The district will initiate salary reductions when five salary reduction agreement forms have been submitted for a Service Provider, and an authorized officer of the Service Provider has signed and submitted the district’s Hold Harmless and Indemnity Agreement and a Tax Sheltered Annuity Company Basic Information Form. Only the district’s specific Hold Harmless and Indemnity Agreement will be acceptable. Failure to execute the district’s Hold Harmless and Indemnity Agreement will be sufficient grounds for denial or dismissal of the Service Provider as an approved Service Provider. In the event that the district has employees participating in a plan with a Service Provider that will not sign a district Hold Harmless and Indemnity Agreement, the district will not allow additional employees to participate in the plan offered by the Service Provider until the Service Provider signs the district’s Hold Harmless and Indemnity Agreement and meets all of the requirements of this administrative procedure. It is the responsibility of the employees requesting approval of a Service Provider to provide the district with the documents required by this procedure.
- An eligible district employee, or an agent, registered representative, or registered investment advisor may request a tax deferred annuity authorization form (salary reduction agreement) from the district payroll office. The employee and the Service Provider, or an agent registered representative, or registered investment advisor shall complete and sign the salary reduction agreement. Only the district’s salary reduction agreement will be accepted. No substitutions will be accepted. In the case of a 403(b) tax sheltered annuity from an insurance company, the salary reduction agreement must be signed by the employee and an authorized and licensed agent of the company or registered investment advisor. The agent, registered representative, or registered investment advisor, must register with the district by completing a Representative Profile, providing a copy of their current Washington State Insurance license (if applicable) and submitting a Hold Harmless and Indemnity Agreement for Agents and Registered Representatives/Registered Investment Advisors.
- The salary reduction agreement will remain in force until modified or cancelled by the employee or employment has terminated. Payroll reductions will not be made if there are insufficient earnings to make a complete reduction.
- Service Providers, their agents, registered representatives and registered investment advisors must comply with all pertinent written directives regarding the solicitation of employees. Solicitation of employees conducted on school premises during scheduled work hours is not permitted. Presentations before and after normal school hours may be given only if approved by the building Administrator. Tax deferred program literature may be disbursed via intraschool mail from the payroll office the first of each calendar quarter.
- In the event that participation in a program offered by a Service Provider drops below 5 participants, the district will notify the Service Provider that participation must be at least five participants within a six month period or the Service Provider will be dropped from the district’s approved Service Provider list. Once a Service Provider has been dropped from the approved list, the Service Provider will be required to meet all the qualifications of a new Service Provider in order to add new participants. This procedure does not affect participants currently contributing to a plan with the Service Provider. Current participants will continue to have all rights and options provided under the plan.
- An Employee must submit a Maximum Allowable Contribution worksheet with each salary reduction agreement. In addition, a Maximum Allowable Contribution worksheet must be submitted annually if the employee’s contribution for a calendar year is equal to or greater than $10,000 (or applicable limit) or if the employee has elected a special 415 Election or is using a “catch-up” provision. The required annual Maximum Allowable Contribution worksheet must be submitted to the district by November 1 of the calendar year in which the above circumstances apply. In the event the Maximum Allowable Contribution Worksheet is not in the district office by the deadline for payroll changes in January of the following year, the district will stop contributions until the employee submits the Maximum Allowable Contribution worksheet. The accuracy of the Maximum Allowable Contribution worksheet must be certified by the employee and a Service Provider, agent, registered representative, or registered investment advisor. The district will assume no responsibility for verifying or certifying the accuracy of the Maximum Allowable Contribution worksheet.
ADOPTED: 05/27/99
- Employee responsibilities for carrying out the deferred annuity program.
6000 Policies
-
FINANCIAL PLANNING AND MANAGEMENT
6000 Program Planning, Budget Preparation, Adoption and Implementation
6001 Tax Deferred Annuity/Compensation
6020 System of Funds and Accounts
6021 Interfund Loans
6022 Minimum Fund Balance
6030 Financial Reports
6040 Expenditures in Excess of Budget
6070 Employee Suggestion Program
REVENUES
6100 Revenues from Local, State and Federal Sources
6101 Federal Cash and Financial Management
6102 District Fund-Raising Activities
6106 Allowable Costs for Federal Programs
6111 Tuition
6112 Rental or Lease of District Property
6114 Gifts or Donations
6120 Investment of Funds
6121 Personal Checks - Acceptance and Processing
PURCHASING
6210 Purchasing: Authorization and Control
6212 Charge Cards
6213 Reimbursement for Travel Expenses
6215 Voucher Certification and Approval
6216 Reimbursement for Goods and Services: Warrants
6220 Bid Requirements
6225 Use of Electronic Signature
6230 Relations with Vendors
6250 Cellular Telephones
RISK MANAGEMENT
6500 Risk Management
6511 Staff Safety
6512 Infection Control Program
6513 Workplace Violence Prevention
6530 Insurance
6535 Student Insurance
6540 Staff Personal Property Protection
6570 Property and Data Management
6580 Continuity of Operations Plan
TRANSPORTATION
6600 Transportation
6605 Student Safety Walking, Biking and Riding Buses to School
6608 Video Cameras on School Buses
6610 Video surveillance
6620 Special Transportation
6625 Private Vehicle Transportation
6630 Driver Training and Responsibility
6640 School Owned Vehicles
6690 Contracting for Transportation Services
FOOD SERVICES
6700 Nutrition and Physical Fitness
SCHOOL PROPERTY
6800 Safety, Operations and Maintenance of School Property
6801 Capital Assets/Theft-Sensitive Assets
6810 Energy Management, Education and Conservation
6881 Disposal of Surplus Equipment and/or Materials
6882 Sale of Real Property
6883 Closure of Facilities
6890 State Environmental Policy Act Compliance
6895 Pesticide Notification, Posting and Record Keeping
CAPITAL PROJECTS
6900 Facilities Planning
6905 Site Acquisition
6910 Construction Financing
6920 Construction Design
6925 Architect and Engineering Services
6950 Contractor Assurances, Surety Bonds and Insurance
6955 Maintenance of Records
6959 Acceptance of Completed Project
6970 Naming of Schools/Facilities
6971 Works of Art