PERSONNEL

Tax Sheltered Annuities

 Salary reduction agreements will be made with any employee wishing to divert a portion of income to a TSA program as provided by federal law.

Tax sheltered annuities will be purchased by the school through the State of Iowa Retirement Investment Club (RIC) Companies in amounts as are agreed in compensation contracts for employees who are included in such agreements.

Responsibilities of the Employee

If an individual school employee is interested in a tax sheltered annuity program, it is his/her prerogative to select his/her own service provider and agent from the approved list of active investment providers through the RIC.

The RIC active providers each have their own set of applications and forms that must be completed in order to begin deductions from their paycheck.  To request an enrollment kit or a personal meeting, the employee should contact the provider of their choice. 

Employees should follow the directions below for filing paperwork for enrolling in, changing or stopping a contribution:

Responsibilities of the Employer

The District has opted to join the State of Iowa’s Retirement Investment Club for offering salary reduction agreements for a tax sheltered annuity.  The employer is responsible for:

1. Determining the plan design
2. Keeping employees informed of changes
3. Processing payroll deductions
4. Sending fund and payroll data to Common Remitter
5. Sending demographic information to planwithease.com

The plan design consists of:

Eligibility Exclusions:  None

Enrollment and Changes:  Year round

Allowable Contributions:  Roth, 15 year special catch up

Internal Exchange:  Only to active providers

In-service Distributions

            Hardship:

                        Employee contributions:  Yes

                        Employer contributions:  Yes

            Loan Option:

                        Up to 50% of all contributions:  Yes

Rollovers into RIC:  Yes

Transfers into RIC:  No

Transfers out of RIC:  No

Each year all employees will receive an Annual Eligibility Notice for Retirement Investors’ Club 403(b) Plan.

Lists of school district personnel will not be made available to service provider’s representatives.

Responsibilities of the Service Provider

Personal contact between sales/representative agent and Davenport school personnel shall be outside regular school hours. 

Each service provider must completely service the annuitant purchaser.  The administration is not responsible for furnishing any information or counsel regarding individual companies for programs.

It will be the responsibility of each service provider to compute and verify the accuracy of the exclusion allowance and to furnish any information about the company, the experience, the contract or any other information about the company, the experience, the contract or any other information requested by the school employee such as guaranteed annual interest rate, current rate of interest on excess earnings or retirement options.  Each sales/representative/agent may be asked to furnish written proof concerning any data or information.

It will be the responsibility of each service provider to assist each employee with the preparation of his income tax, both state and federal, when questions relating to the annuity program arise.

SUMMARY

Procedures for Employees Interested in the Annuity program

1. Choose an investment provider from the approved provider list through the RIC.
2. Decide how much to save
3. Select appropriate investments
4. Complete required paperwork

• Reviewed 5/96, 7/03, Revised 5/11
• Edited 4/91, 7/99, 7/03, 5/11