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Madison Metropolitan School District

Employee Handbook 2021-2022

5.4 Salary Deferrals –Tax Sheltered Annuities (TSA)

Employees, upon written request to the Department of Human Resources, may participate in a group tax deferred annuity program of their choice from plans authorized by the Board of Education and on file in the Human Resources Department. Employee’s currently participating in plans authorized by the Board as of January 1, 2016, shall be able to continue to participate in those plans. As of July 1, 2017, any new participants and those employee’s wishing to change plans many only participate in the three (3) plans selected by the District, in consultation with employee representatives. The following rules shall govern said annuity programs:

  1. There shall be no solicitation of employees during working hours by the authorized agents.

  2. Authorized agents may contact employee representatives during non-contract time in order to request the scheduling of a work site presentation. An employee representative may arrange for a time and location for said meeting. Such meetings may be held only after the contracted teaching day. Notice of such meetings may be posted in the school office and the employee lounge. Individual mailboxes shall not be used for this purpose.

  3. Agreements to permit initial participation in a tax deferred annuity program shall be made on the proper form to be provided by Human Resources. Completed agreements will be submitted to the Department of Human Resources by the authorized agents.

  4. A minimum of ten dollars ($10) per paycheck shall be permitted for payroll deduction.

  5. The employee is responsible for computing a legally allowable maximum deposit.

  6. There will be ten (10) deductions for employees paid monthly on a ten (10) pay basis, and twelve (12) deductions for those on a twelve (12) pay basis. For employees paid biweekly, a deduction will be made from each paycheck with the exception of those employed on a ten (10) month basis. Such employees will have deductions from each check except the four (4) biweekly payrolls during the summer. The District shall deduct the authorized amount from each participant’s regular salary check and forward such directly to the company.

  7. New enrollments are permitted anytime during the calendar year if the proper form is filed with Human Resources

  8. If two (2) programs are selected, the salary reduction agreements for both programs must be combined to determine if the total is within the legally allowable maximum deposit.