The Board of Education will make payroll deductions for those teachers who desire to participate in the District’s tax sheltered annuity program. The purchase of the annuity will be optional with the individual teacher.

A list of vendors, as determined by the District, will be available upon request from the District Office. An employee may choose to invest in any number of TSA products from these District-approved vendors.

The District shall remit the funds deferred from the employee’s salary under the terms of this agreement for the purchase of a non-forfeitable annuity contract or the establishment of a custodial account both as described in Section 403(b) of the Internal Revenue Code.

Unless the employee elects a later effective date, changes in the employee’s choice of the TSA plan or the amount withheld (including the complete termination of the salary reduction on a date specified by the employee) shall begin on the first (1st) day of the pay period immediately following receipt of written notice regarding such change, provided that the employee gives the District such written notice at least fifteen (15) working days prior to the first (1st) day of the next pay period.

The employee shall certify in writing as requested by the District but no more than two (2) times per year (e.g. due to a change in full time equivalency, absence, other deferrals, etc.) that the percentage or dollar amount of salary reduction withheld from compensation complies with the limits applicable to 403(b) TSA plan deferrals and does not exceed the amount permitted under Section 403(b), 415 and 402(g) of the Internal Revenue Code. Upon request from the District, the employee agrees to provide documentation certifying compliance with applicable IRS rules and regulations from the employee’s TSA vendor or other knowledgeable practitioner (i.e., an accountant, attorney, IRS agent, etc.)

The District agrees to provide the employee, upon written request, with timely information available from the District’s records, which is necessary to enable the employee to make these determinations.

The employee acknowledges the District made no representation to the employee regarding the advisability, appropriateness or tax consequences of any salary reduction agreement, participation in a tax sheltered annuity, or the company which issues the annuity contract or which invests the employee’s salary reduction funds. The District shall have no liability whatsoever for any loss, solvency, operation, or benefits provided by the TSA vendor.

Please see the TSA Plan’s Summary Plan Description for current contribution limits and additional details about the Plan.

Adopted 10/12/11