Tax Sheltered Annuities Policy 5314
TAX SHELTERED ANNUITIES
- The district shall arrange for the purchase of tax deferred annuity contracts which are intended to meet the requirements of Section 403(b) of the Internal Revenue Code of 1954, as amended, on behalf of any employee of the district who elects to participate in such program if the following conditions are satisfied:
- at least five employees of the district have requested the purchase of such contract from the company to whom the application is directed; and
- such company is authorized to do business in the state of Washington through a Washington-licensed insurance broker or agent through whom the contract is purchased.
- An employee may elect to participate in any available tax deferred annuity program by completing an appropriate application for participation with the insurance company of the employee's choice, which application shall designate the beneficiary or beneficiaries under the annuity contract and shall set forth such other information as may be required by the insurance company to enable the district to purchase an annuity contract on the employee's behalf. An available tax-deferred annuity program meets the criteria listed above in 1 a. and b. and has a minimum of at least five employees enrolled.
- Premiums under such annuity contracts shall be paid on behalf of the employee through the district's payroll authorization plan.
- No broker, agent, or other representative of an insurance company may enter district premises for the purpose of soliciting any employee, during the employee's work hours, regarding the purchase by the employee or servicing of any tax deferred annuity, insurance policy, or other investment.
- The district's business office shall maintain a list of currently available tax sheltered annuity programs, together with the names and telephone numbers of brokers or agents representing the insurance companies issuing such contracts. Employees shall have access to this information upon request.
- The district does not review, scrutinize, or recommend any annuity contract and is required by law to approve the participation of any insurance company if the requirements of paragraphs 1 and 7 of these procedures are met. Therefore, the district assumes no responsibility for any aspect of any annuity program which is available.
- The district shall require participating companies to provide a hold harmless agreement protecting the district from any liability attendant to procuring tax shelter annuity programs for employees.
- Distribution of information regarding annuity programs to employees may not be made through the district's interschool mail, the school's staff box, or district electronic distribution nor will the district provide to any annuity representative a listing of employees, their addresses, or phone numbers.
Legal reference: RCW 28A.400.250, Tax-deferred annuities
Initially Adopted: December 6, 1984
Adopted: March 8, 2010