The School Board of Miami-Dade County
Bylaws & Policies
Unless a specific policy has been amended and the date the policy was revised is noted at the bottom of that policy, the Bylaws and Policies of the Miami-Dade County Public Schools were adopted on May 11, 2011 and were in effect beginning July 1, 2011.
 

6144.01 - SUPPLEMENTAL RETIREMENT INVESTMENT PROGRAMS

The purpose of this policy is to:

 

A.

Assure compliance of the District’s Internal Revenue Code (IRC) § 403(b) Tax Sheltered Annuity Investment Program with Federal Regulations.

     
 

B.

Adopt an official plan document for the School Board as the plan sponsor of the District’s IRC § 403(b) Tax Sheltered Annuity Investment Program, hereafter referred to as "TSA Investment Program" which can be amended, from time to time to assure adherence with all IRC regulations including approval of investment options and plan administration guidelines.

     
 

C.

Adopt the Independent Benefits Council’s (IBC) Statewide "Model Plan" as the accepted platform for companies offering investments to District employees as part of the TSA Investment Program, including any newly added providers to be offered to District employees. Providers will be classified into one (1) of three (3) categories, as follows:

     
 

1.

"Run Off Provider" - This category includes any plan investment provider that is restricted to receiving and/or changing contribution amounts from employees with current contributions as of November 18, 2008. Those employees may continue to direct contributions to the Run Off Provider, and may change contribution amounts and investment allocations. However, a Run Off Provider may not accept contributions or rollovers from any plan participant that does not have a plan account with the Run Off Provider as of November 18, 2008.

   

2.

"IBC Approved Provider" - This category includes those investment providers listed in the model plan as recommended by the IBC.

   

3.

"Grandfathered Provider" - This category includes any investment provider receiving employee contributions as of November 18, 2008, that is not classified as either a Run Off Provider or as an IBC Approved Provider.

   

Both IBC Approved Providers and Grandfathered Providers will continue their current eligibility to add new participants, as well as make any and all necessary changes including, but not limited to starts, stops, changes, distributions, etc.

     
   

Run Off Providers, IBC Approved Providers and Grandfathered Providers shall be responsible to complete all necessary due diligence with the Board to be in complete compliance with all Internal Revenue Code (IRC) § 403 (b) requirements which become effective January 1, 2009 and beyond. In particular, each of the above providers will be required to complete an Information Sharing Agreement (ISA). In the event an ISA is not in place for a particular provider, restrictions will be imposed on that provider in accordance with the IRC and the regulations thereunder.

     
 

D.

Create choice, compliance, and a source of revenue for the District in determining the number of providers offering investments to District employees, in conjunction with a per participant fee structure to be collected by the District from providers to offset administrative expenses, including the possibility in the future of seeking the services of a third party administrator to assist in the plan’s administration with funds to pay the administrator to come from the revenue from participating companies.

     
 

E.

Document in Board policy the existence of the District’s IRC §457 and §401(k) plans.

Requirements for the TSA Investment Program are:

 

A.

All employees of the District are eligible to participate.

     
 

B.

Employees’ investments will be limited to maximums as determined by IRC §415(c) (1)(A) and §402(g)(1) limitations, or as to be determined in the future under the Internal Revenue Code.

 

C.

Employees may select from providers incorporated as part of the State of Florida Model Plan, as recommended by the Independent Benefits Council (IBC), and adopted by the District, which may change from time-to-time. All terms and conditions of such participation in the Model Plan are comprised of the Letters of Agreement between the IBC and selected companies agreeing to provide competitive rate structures to maximize potential returns on investments for employees and also agree to the fee structure as agreed upon by the IBC to offset District administrative expenses. Any newly added providers to the TSA Investment Program must be part of the Model Plan.

     
 

D.

Employees may also select from providers which are receiving contributions as of November 18, 2008. Providers will be classified into one (1) of three (3) categories, as follows:

     
 

1.

"Run Off Provider" - This category includes any plan investment provider that is restricted to receiving and/or changing contribution amounts from employees with current contributions as of November 18, 2008. Those employees may continue to direct contributions to the Run Off Provider, and may change contribution amounts and investment allocations. However, a Run Off Provider may not accept contributions or rollovers from any plan participant that does not have a plan account with the Run Off Provider as of November 18, 2008.

   

2.

"IBC Approved Provider" - This category includes those investment providers listed in the model plan as recommended by the IBC.

   

3.

"Grandfathered Provider" - This category includes any investment provider receiving employee contributions as of November 18, 2008, that is not classified as either a Run Off Provider or as an IBC Approved Provider.

     
   

Both IBC Approved Providers and Grandfathered Providers will continue their current eligibility to add new participants, as well as make any and all necessary changes including, but not limited to starts, stops, changes, distributions, etc.

 

E.

All companies shall be responsible to complete all necessary due diligence with the Board to be in complete compliance with all Internal Revenue Code (IRC) § 403 (b) requirements which become effective January 1, 2009 and beyond. In particular, each of the above providers will be required to complete an Information Sharing Agreement (ISA). In the event an ISA is not in place for a particular provider, restrictions will be imposed on that provider in accordance with the IRC and the regulations thereunder.

     
 

F.

The District adopts the 403(b) Plan Document for Public Educational Organizations ("Plan Document") as modified by an Adoption Agreement which is incorporated herein by reference.

The District will collect fees in amounts determined by the Model Plan (currently $12/participant/year) in addition to the existing $5/participant/year to be paid by all investment providers other than Run Off Providers to offset administrative expenses for the Office of Risk and Benefits Management to manage the plan. These funds will continue to be used to offset administrative expenses within the Office of Risk and Benefits Management to administer the TSA Investment Program, including the possibility of using such funds to pay for a third party administrator and using the administrator as a common remitter for all employee-funds.

Requirements for the District’s IRC §457 Plan are:

 

A.

All employees are eligible to participate.

     
 

B.

Employees’ investments will be limited to maximums as determined by IRC §415(c) (1)(A) and §402(g)(1) limitations, or as to be determined by the Internal Revenue Code in the future.

     
 

C.

Employees may select from investment options which are offered by the plan administrator which may change from time-to-time.

     
 

D.

The Plan Document is incorporated by reference to assure adherence with the Internal Revenue Code and its regulations, including approval of investment options and plan administration guidelines.

Requirements for the District’s IRC § 401(k) Plan:

 

A.

All full time employees are eligible to participate.

     
 

B.

Employees’ investments will be limited to maximums as determined by IRC §415(c) (1)(A) and §402(g)(1) limitations, or as to be determined by the Internal Revenue Code in the future.

     
 

C.

Employees may select from investment choices which are offered by the plan administrator which may change from time to time.

     
 

D.

The Plan Document is incorporated by reference to assure adherence with the Internal Revenue Code and its regulations, including approval of investment options and plan administration guidelines.

     
   

Specific administrative criteria for all Supplemental Retirement Investment Programs regarding the processing of contribution changes including, but not limited to starts, stops, dollar contribution level changes, loans, and distributions will be made in accordance with applicable IRC regulations and will be recorded by the Office of Risk and Benefits Management in a handbook entitled Procedures Manual for Supplemental Retirement Investment Programs.

F.S. 1001.41(1), 1001.41(2), 1001.42(5), 1001.42(23), 1001.43(6), 1001.43(10)
F.S. 1001.43(11), 1012.23