| South Euclid-Lyndhurst Schools |
| Bylaws & Policies |
6520 - PAYROLL DEDUCTIONS
To the extent permitted by law and consistent with the specific provisions of any applicable negotiated agreement, the Board of Education authorizes deductions to be made from an employee's paycheck upon proper authorization on the appropriate form for the following purposes:
| A. | Federal and State income tax | |
| B. | Social Security or retirement contribution | |
| C. | municipal income tax | |
| D. | School Employees Retirement System | |
| E. | Section 125 deductions (cafeteria plans) | |
| F. | State Teachers Retirement System | |
| G. | savings in a chartered credit union | |
| H. | contributions to charitable and not-for-profit corporations and community fund organizations (at least ten percent (10%) of the District employees participate) | |
| I. | payment of dues to labor or other organizations | |
| J. | payment of group insurance premiums for a plan in which at least ten percent (10%) of the District employees participate | |
| K. | payment for benefits of part-time employees who elect to participate in benefits provided to full-time staff | |
| L. | 457 Deferred Compensation Plans |
The Board of Education 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 approved by the Board,
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 District's administrative guidelines. However, it shall be clearly understood that the Board's only function shall be the deduction and remittance of employee funds.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.
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 District. The service agreement shall protect the District from any liability attendant to procuring the annuity (i.e., a "hold harmless") in accordance with provisions of the Internal Revenue Code and any other applicable Federal or State law.
Adopted 6/21/05
Revised 2/23/10