Manatee County School District
Agenda Item #45
Approval of 403(b) Plan Document
The IRS issued new regulations covering the operation of voluntary supplemental retirement plans, also known as Tax Sheltered Annuities or 403b plans. The regulations become effective
Approximately 2,095 employees have a payroll deduction to a 403(b)/457 plan. Approximately 1,808 (86%) of those employees have their investment accounts with active providers. All currently "active" 403(b)/457 providers as defined by Policy 6.1(3)(d) will be approved as a provider as long as they meet the criteria presented in response to TSA Consulting Group, Inc.'s Request for Information (RFI) plus the following three new providers: American Century, Waddell and Reed, and Plan Member Services. Approximately 287 (14%) employees who currently have accounts with "inactive" providers, will no longer be able to make payroll deductions after January 1, 2009.
Each provider will be charged a $500.00 per year administrative fee (plus 5% per year thereafter) to help defray District administrative costs for the 403(b) Program.
The Superintendent recommends approval of the 403(b) Plan Document.
Motion and approval of the 403(b) Plan Document.
Negative Impact. Collection of administrative fees from providers will reduce District administrative costs by an estimated $5,000.00 per year.
Attachment: RFI Report from TSACG.pdf
Attachment: IBC Model Plan Proposal.pdf
Attachment: Manatee_FL_ADOPTION AGREEMENT 2.pdf
Any person who desires to appeal any decision made by the School Board with respect to any matter considered at the above-mentioned meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which an appeal may be based. School Board meetings are held in accessible locations. Auxiliary aids will be provided, upon written request received at least 48 hours prior to the meeting, to participants with disabilities.