AR 3350Payroll-IRS Retirement Plans

Employees hired at least half time may purchase 403(b) and 457 retirement plans with portions of their income. The Board shall offer no advice or make any recommendations or representation respecting the value or merit of any company or annuity program offered. The selection of a company or program shall be made solely by the employee who shall assume all risks of participation in the program chosen.

Participation in 403(b) and 457 retirement plans will conform to the following rules that are applicable to such plans per the Internal Revenue Code (I.R.C.):

The Superintendent shall act as agent for the Board in the administration of all aspects of the 403(b) and 457 retirement plans.

The Board shall, by reduction of compensation in the amount specified, remit payment for 403(b) and 457 retirement plans for employees pursuant to I.R.C. provided the employee submits a signed salary reduction agreement.

Employees will be limited to selecting from only the companies listed in E3350(a) Active List Tax Shelter. The Superintendent will maintain a list of companies for 403(b) and 457 retirement plans.

Any companies that sell 403 (b) or 457 retirement plans may be placed on the District's list if they have five (5) or more signed contracts with employees. Any company that is on the District's list to sell 403(b) retirement plans may also sell 457 retirement plans to District employees.

The Board shall not withhold income taxes on the amount of the contributions requested to be made by the employee for the 403(b) and 457 retirement plans in a given year, provided that the employee and the firm, from which the employee's annuity has been purchased, have executed and furnished the District hold harmless agreements (Service Provider Agreement) on forms provided by the District.