|School City of East Chicago|
|Bylaws & Policies|
6520 - PAYROLL DEDUCTIONS
For those employees not covered by the terms of a negotiated agreement, the School Board authorizes that certain deductions may be made from an employee's paycheck upon proper authorization on the appropriate form. Deductions shall be made for:
|A.||Federal and State income tax;|
|C.||State Teachers Retirement Fund or Public Employees Retirement Fund;|
|D.||County local option income tax;|
|E.||Section 125 deductions (cafeteria plans);|
|F.||Section 401(a) deductions;|
|G.||Section 403(b) deductions;|
|H.||Section 457 deductions;|
|I.||U.S. Savings Bonds;|
|K.||savings in a chartered credit union;|
|L.||contributions to charitable corporations not-for-profit and community fund organizations;|
|M.||payment of dues to labor or other organizations;|
|N.||payment of group insurance premiums for a plan in which at least ten (10) percent of the Corporation employees participate;|
|O.||payment for benefits of part-time employees who elect to participate in benefits provided to full-time staff.|
To the extent permitted by law and in accordance with the procedures set forth below the Board also declares its willingness to enter into an agreement with any of its employees whereby the employee agrees to take a reduction in salary with respect to amounts earned after the effective date of such agreement in return for the Board's agreement to use a corresponding amount to purchase an annuity for such employee (or group of employees desiring the same annuity company) from any company authorized to transact the business as specified in law in accordance with Section 403(b) of the Internal Revenue Code, and in accordance with the Corporation's administrative guidelines. However, it shall be clearly understood that the Board's only function shall be the deduction and remittance of employee funds.
In any case where the employee designates the agent, broker or company through whom the Board shall arrange for the placement or purchase of the tax-sheltered annuity, the agent, broker or company must execute a reasonable service agreement, an information-sharing agreement, and/or other similar agreements as determined at the discretion of the Corporation. The service agreement shall include a provision that protects, indemnifies, and holds the Corporation harmless from any liability attendant to procuring the annuity in accordance with provisions of the Internal Revenue Code and other applicable Federal or State law.
The agent, broker or company must be designated by a number of employees equal to at least one percent (1%) of the Board's full-time employees or at least five (5) employees, whichever is greater (except under no circumstances shall the agent, broker or company need to be designated by more than fifty (50) employees).
The Board may limit the number of participating providers and select approved providers.
The Board, by providing employees with payroll deduction services for annuities, is not providing any financial advice to employees, and is not vouching for the suitability of any investment or any annuity provider. The Corporation assumes no responsibility or liability for any investment decisions or losses with respect to employee annuity purchases.
Said agreement shall comply with all of the provisions of law and may be terminated as said law provides upon notice in writing by either party. Employees shall notify the Superintendent's Office in writing if they wish to participate in such a program.
© Neola 2008