PERSONNEL

Tax Sheltered Annuities -

Salary reduction agreement 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 district in amounts as are agreed in compensation contracts for employees who are included in such agreements.

This is a complex program, which could involve a large number of school district personnel and a score or more of interested service providers.  The following guidelines are divided into three main areas:  Responsibilities of the Employee, Responsibilities of the Employer, and Responsibilities of the Service Provider.

Responsibilities of the Employee

If an individual school employee is interested in a tax sheltered annuity program, it is his prerogative to select his own service provider and agent.

Groups of employees may recommend particular insurance companies and various plans to their membership, but these recommendations are not binding upon individual employees.

Responsibilities of the Employer

The Iowa Attorney General's opinion dated August 17, 1965 prohibits the employer from making a selection or restricting the number of service providers, which may participate.

Service Providers may officially contact employees as soon as the Board has formally adopted the resolution inaugurating the program. 

All Requests for Modification of Contract, Service Provider Certification and Agreements must be filed in the office of the Benefits Facilitator of the school district.

All school district personnel will be notified in writing that the Board Education is participating in the tax sheltered annuity program, that information can be secured from companies and agents with whom the employee does business and who are qualified to write annuity contracts in Iowa and that each individual employee must make his own arrangements with the company of his choice.  Therefore, lists of school district personnel will not be made available to service provider’s representatives.

Approved forms will be available in the office of the Benefits Facilitator for use by sales representatives/agent and school district employees. 

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. Decide which sales/representative/agent you wish to contact.
    

2. Discuss the annuity program with your sales/representative/agent to obtain the necessary information.
    

3. Complete all necessary company forms and District Salary Reduction Agreement form.

• Updated 4/91, 7/99, 7/03

• Reviewed 5/96, 7/03