Policy 7660

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The board of education is authorized to enter into agreement with its employees for the purchase of annuities for its employees as authorized in section 403(b) of the Internal Revenue Code of 1954, as amended. The board authorizes the superintendent or the finance officer on behalf of the board of education to sign such application and other papers as may from time to time be required to carry into effect a 403(b) annuity program as authorized by the board of education and in accordance with the terms of the agreements executed by the board of education for this purpose with its employees.

The board also authorizes payroll deductions for the tax sheltered annuity program for those employees who choose to participate in the program.

The board imposes the following conditions upon the companies offering the tax sheltered annuities program:

  1. Each company must sell in multiples of $5.00 per month (no odd dollar amounts will be acceptable).
  2. Each company desiring to offer an annuity plan will submit to the board of education a minimum of 20 applications signed by employees not currently having payroll deductions being made for annuity plan to be eligible for plan approval by the board of education. These applications must be submitted prior to the third Monday in July. Applicants must be told by a company representative that their applications are contingent on formal approval of the plan by the board of education.
  3. Each company must have at least ten (10) enrolled board of education employees to qualify for payroll deduction. Any company with fewer than ten (10) enrolled employees will be removed from the list of approved plans and the enrolled employees will be given a reasonable opportunity to change their annuity participation to an approved plan.
  4. A copy of the Approved Tax Sheltered Annuity Plan must be submitted to the board of education for file. Only the approved plan will be offered to employees of the board of education.
  5. School employees will not be contacted during student instructional time. The superintendent will have authority to approve presentations to large groups of employees after pupils have been dismissed for the day or on workdays when classes are not in session.
  6. Employees should not be pressured or repeatedly visited by any company representatives. If violations of these conditions are reported to the superintendent, the applications submitted by the representative in question will not be accepted by the board of education. Only company representatives registered with the chief finance officer of the school district will contact employees. Proof of registration must be shown to all employees contacted.
  7. Cancellation of a tax sheltered annuity contract by an employee will be as provided in the contract. The employee will notify in writing the payroll department of the school district 30 days prior to the effective date of such cancellation.

Legal Reference: United States Internal Revenue Code ยง 403(b); G.S. 115C-341

Adopted: February 25, 1982

Revised: July 28, 2008


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