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Tax Shelter Annuity Criteria: DKB-R

  • Fiscal Management: D
Tax Shelter Annuity Criteria: DKB-R
Updated

The School District shall allow tax sheltered annuity/investment products to be marketed to its employees by companies which have been approved by the District in accordance with the procedures outlined herein:

1. The company must offer programs which qualify as tax sheltered annuity programs under the provisions of Section 403(b) of the Internal Revenue Code of 1954, as amended. These programs must offer the participants the right to choose an annuity upon retirement under the same contract.

2. The company will offer tax sheltered annuities to employees through payroll reduction only. Life Insurance and other insurance related products must not be added to or sold in conjunction with a TSA contract.

3. A company must have at least ten (10) signed applications with a minimum monthly deposit of no less than $20.00 from each employee enrolling in a particular company's TSA program at the time of final approval for admission. A company will have ninety (90) days from the date of preliminary application in which to enroll the minimum number for final approval. If the quota is not reached within this time frame, the company representative is obligated to notify the employees who have signed that the company has not qualified for the TSA reduction privilege. Companies who have not qualified under the provisions outlined above may reapply on an annual basis from the date of previous preliminary approval.

4. All authorizations for new TSA contracts, changes, and cancellations must be in writing, including the social security number, signed by the employee, and received from the company in the Personnel Office of the Brighton School District no later than the fifteenth (15th) day of the month in which the new contract, changes, or cancellations is to become effective. (The deadline date is the 5th day of the month for December).

5. As of November 1, 1990, companies who have district employees enrolled in a tax sheltered annuity program and who do not meet the criteria set forth herein may continue to serve those contracts in existence.

6. The company warrants that, where the information provided by the district's employees to the company's authorized representative is accurate and complete, the maximum exclusion allowance calculations made by those representatives on the basis of that information are within the employee's exclusion allowance as defined by applicable federal and state law.

7. A newly hired employee who has an in force tax sheltered annuity plan at the time of employment by the district shall be given the opportunity to transfer the TSA to a company whose contact meets the criteria herein and is approved by the district for solicitation.

8. Official TSA representative may meet with employees before or after the designated work day only.

9. All sales literature and forms to be used in solicitations must be submitted to the Executive Director of Personnel for approval prior to distribution or use in the district. Any literature deemed inappropriate or which would not qualify under the criteria contained herein will be prohibited from distribution to district employees.

10. District Personnel Directory will not be given to the company. Mass telephone solicitation of any kind will not be permitted. Telephone secretaries, professional calling services, professional appointment secretaries, or any other mass calling systems are not authorized. Only licensed and trained account representatives working on a referral basis may make telephone calls for appointments.

11. The company will submit to the district, or its representative, a list of not more than two (2) qualified and licensed NASD (National Association of Securities Dealers) representatives residing in the state of Colorado who will be soliciting employees of the district. One of the representatives is to be designated as the contact person for all TSA matters with the district. The authorized representatives are:

___________________________________________________ Representative/Contact

___________________________________________________ Address Phone No.

___________________________________________________ Representative

____________________________________________________Address Phone No.

12. The company agrees to indemnify and hold harmless the board and/or district from any action growing out of TSA reductions and commenced by any employee against the board and/or district provided the information supplied the company by the district is accurate and complete.

13. Proven violation of the TSA criteria may be cause for discontinuing a company from further approval of writing of TSA contracts in the district. Such discontinuance shall in no manner affect any liability of the company incurred prior to such discontinuance.

14. An authorized officer of the TSA company is to acknowledge in writing that the company agrees to and meets the above criteria.

____________________________________________________Name of Company

____________________________________________________Address

____________________________________________________Phone Number

___________________________________________________ Print Name of Company Officer

____________________________________________________Signature and Title of Company Officer

 

State of ______________

County of_____________

On this ____ day of _________, 19___, before me personally appeared _________________________________ known to me to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same.

_______________________________
Notary Public

My commission expires__________

Approved: January 15, 1991
Revised November 12, 1996