In response to members' requests, ASBSD developed a new service to answer questions and help members comply with the new regulations by the January 1, 2009 deadline.

Section 403(b) is a sheltered tax annuity plan set up by the Internal Revenue Code that allows education employees to set aside income for retirement, and defer it from federal income taxation until withdrawn. The most recent set of regulations are an effort by the IRS to better manage tax-sheltered annuity plans.

The new procedures require all 403(b) programs to have a written plan which contains information on the terms and conditions for eligibility, benefits and limitations. Another key component is information sharing between 403(b) providers to track accounts as employees relocate or transfer employment.

ASBSD has retained the professional services of a CPA, independent of the insurance industry, to assist member school districts in the creation of necessary plan documents. The service will cover and include:

• A model written plan for your district
• Model availability notification
• Model salary reduction agreement
• Requirement to share information
• 403(b) Plan Options, including hardship distributions, rollovers, loans, contract exchanges and plan-to-plan transfers
• Telephone Consultation

The service will not include preparation of IRS Form 5500 or the administration of employee accounts.

ASBSD member school districts will be charged a one-time fee of $300 for the service.

By way of service to members of the ASBSD Property and Liability Pool, the Protective Trust Board of Directors has authorized payment of the service for any pool-member school district wishing to participate.