Policies -> Tax-Sheltered Annuities
Policy
SUBJECT: Tax-Sheltered Annuities Policy
Date Posted: 06/07/2005
Purpose
Policy
Solicitation Regulations
Transmittal of Funds to Carriers
1. PURPOSE
1.1
All regular benefits-eligible employees of Clayton State University
are eligible to participate in the Tax Sheltered Annuity (TSA)
program, a voluntary supplemental retirement program.
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2. POLICY
2.1
The TSA program is a qualified plan under Section 403(b) of the
Internal Revenue Code. Investments are made through life insurance
companies and mutual fund companies licensed to do business in
the State of Georgia and approved by Clayton State University.
Tax sheltered annuities permit employees to defer payment of federal
income taxes on a portion of their income to later periods. Such
taxes are not due until the funds are withdrawn.
2.2
All regular, benefits-eligible employees may elect to purchase
a TSA at any time. The TSA will become effective on the first
day of the month following such election.
2.3
Voluntary contributions from the employee only are made through
payroll deduction. There is no matching contribution by the state
or Clayton State University for the TSA. An employee must execute
a salary reduction agreement form authorizing the Office of Human
Resources & Services to reduce future earnings and purchase a
TSA with the chosen company.
2.4
The maximum amount of salary which will qualify each tax year
for tax deferment must be determined annually by the employee
and his or her agent. This determination is necessary in order
to avoid violating the IRS regulations regarding exceeding the
maximum allowed tax deferment. A new salary reduction form must
be submitted to the Office of Human Resources & Services when
this calculation shows that the contributions amount must be changed.
2.5
It is the employee's responsibility to make his or her own determination
with regard to the selection of annuities and the federal income
tax status of contributions. Clayton State University assumes
no liability or responsibility either for federal income tax aspects
of the TSA program or for the terms and provisions of any annuity
contracts issued thereunder.
2.6
Employees may stop the TSA payroll deduction at any time by submitting
a request to the Office of Human Resources & Services, which will
go into effect on the first day of the month following receipt
of the request.
2.7
Withdrawal of a TSA account value is available at termination
from employment or upon reaching age 59 1/2.
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3. SOLICITATION REGULATIONS
3.1
Clayton State University maintains a list of approved vendors
(companies). This list is available in the Office of Human Resources
& Services.
3.2
Representatives of approved carriers are not authorized to initiate
contact with employees. Employees interested in a TSA should contact
one of the listed representatives of the carrier of their choice
to obtain information and to secure forms to apply for the program
of their choice.
3.3
Authorized representatives are permitted to make sales presentations
to eligible employees at Clayton State University only at the
employee's request and may not solicit business with any employee
unless contacted first by the employee.
3.4
Representatives of carriers are permitted at Clayton State University
as guests and are expected to comply with all applicable rules
and regulations.
3.5
No campus mailings or telephone campaigns are permitted to campus
offices.
3.6
The providing of gifts or monetary rewards in exchange for information
on newly hired employees is strictly prohibited.
3.7
All carrier representatives are expected to abide by the parking
regulations in effect.
3.8
Carrier forms are the responsibility of the carrier and the employee.
A Salary Reduction Agreement must be submitted to the Office of
Human Resources & Services. Any Salary Reduction Agreement submitted
which is incorrect or incomplete will be returned to the employee.
It is the responsibility of the employee to resubmit a corrected
Salary Reduction Agreement within the eligibility period. The
final Salary Reduction Agreement submitted will determine the
effective date of the participation.
3.9
Carrier representatives must be familiar with the benefits provided
under TRS and with applicable Georgia laws, Board of Regent rules
and regulations, and Internal Revenue Service Code.
3.10
Clayton State University reserves the right to limit or revoke
the solicitation privileges of any representative or carrier at
its discretion.
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4. TRANSMITTAL OF FUNDS TO CARRIERS
4.1
All TSA funds will be forwarded by Clayton State University to
carriers within 10 business days after the close of each month.
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