Upper Arlington City School District
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 district income tax
 E.School Employees Retirement System
 F.State Teachers Retirement System
 G.Section 125 deductions (cafeteria plans)
 H.savings in a chartered credit union
 I.payment of dues to labor or other organizations
 J.payment of District group insurance premiums
 K.457 Deferred Compensation Plans
 L.health savings account
 M.any other deduction required by collective bargaining agreement or other voluntary deductions approved by the Treasurer

To the extent permitted by law and in accordance with the procedures set forth below, the Board declares its willingness to purchase or procure tax-sheltered annuities for its employees who request that such annuities be purchased through payroll deduction. Specifically, employees may request in writing that the Board purchase or procure a tax-sheltered annuity for them in exchange for the employee taking a reduction in salary with respect to amounts earned after the effective date of such written notice - reductions in salary shall commence thirty (30) days after the Treasurer receives the employee's written notice. The Board shall use a corresponding amount to purchase the annuity for such employee from any District approved licensed agent, broker or company authorized to transact the business as specified in law in accordance with Section 403(b) of the Internal Revenue Code. 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 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.

For a company having District-wide status, the Board of Education authorizes payroll deductions for any District employee who wishes to participate in the company’s tax sheltered annuity program. To qualify for District-wide status, a company must:

 A.be licensed by the State of Ohio;
 B.have at least fifteen (15) customers in the school system; and
 C.execute an agreement with the Board protecting the Board from any liability attendant to procuring the annuity. The Treasurer of the Board is empowered to execute such agreement.

All other companies will be recognized as having individual status if they are licensed by the State of Ohio, but have fewer than fifteen (15) customers. Types of companies which have individual status would include:

 A.companies added after October 25, 2006 which have fewer than fifteen (15) customers using payroll deductions;
 B.companies approved prior to the effective date that drop below five (5) customers in the school system after the effective date of this regulation; and
 C.companies which have customers who are newly hired by the Board of Education and desire to continue their annuity through a payroll deduction.

In cases when an employee is absent from duty and there is no sick leave applicable, or when the absence is unauthorized, the salary deduction for each day of absence will be based on the employee’s current salary divided by the number of work days required in the official school calendar for each job classification.

R.C. 9.90, 9.91

Revised 3/10/08