4152-R Payroll Deductions

  • Tax Sheltered Annuities

    The following regulations apply to all salary reduction agreements under IRC Sections 403 (b) and 403 (b)(7) and 457(b):

    • Eligibility:  As defined in the District 403(b) Plan Document, each employee shall be eligible to participate in the Plan immediately upon employment.  Exceptions are student teachers and student workers.
    • C.C.S.D. payroll department will maintain a list of current companies eligible to write agreements with C.C.S.D. employees.
    • In order to be added as an eligible vendor, the company must furnish an executed hold harmless agreement, proof of licensing in the state of Wyoming, have a minimum participation of 10 employees, and exchange such information as may be necessary to satisfy section 403(b) of the Internal Revenue Code of 1986 as now in effect or as hereafter amended, or other requirements of applicable law.
    • The employee may choose an approved vendor and enter into an agreement for elective salary deferral. The employee will furnish to the payroll department a copy of the salary reduction agreement indicating that it is covered under IRC Section 403 (b).
    • "Incidental," "income protection," or "other" insurance is not allowed as a part of the salary reduction agreement. The District will in no way accept responsibility to alter W-2 forms.
    • C.C.S.D. payroll department will withhold deductions monthly from the employee's pay and remit to the 403(b) or 457(b) plan vendor in a timely manner. The deduction will be reflected on the employee's check stub.
    • The Superintendent of Schools may delegate to District employees the authority to execute amended employment agreements to allow payroll deductions.
    ADOPTION DATE: July 9, 1991; Revised May 8, 1995; July 10, 1995; Revised June 13, 2006; Revised April 28, 2015

    LEGAL REFERENCE(S): Internal Revenue Code Sections 403(b), 403 (b)(7)