Tax Sheltered Annuities
Tax Sheltered Annuities (TSA) represent a retirement savings program authorized by Section 403(b) of the Internal Revenue Code. Employees are able to defer income taxes on current earnings by contributing to a TSA, which is taxed when distributions are made back to the employee (generally at retirement). Beginning in October of 1999, the Lincoln Public Schools will forward employees' TSA contributions ONLY to companies which have signed the district's "Service Provider Agreement." There are two lists of companies on this website. The "Participating Companies" have signed the Service Provider Agreement, and will be eligible to receive employee TSA contributions this October. The "Non-Participating Companies" have either declined to sign the Agreement or have not responded at all. Throughout the summer of 1999, we will work with the non-participating companies and continue to solicit their signature of the Service Provider Agreement. Check this website often, as we anticipate changes throughout the summer.
The district has finalized agreements with several mutual fund companies and with several broker/dealers which will allow a significant number of LPS employees to remain with their current TSA selection. Please refer to the updated "participating companies" list for the latest information.
Companies that have been added as "issuers only" include Putnam Financial Services, American Funds Distributors, and American Century Investors. Approximately 150 LPS employees currently have TSA's with these companies, so this is a very significant development.
Important Note: if you wish to make contributions to a company identified on the list as "Issuer Only," you may do so in one of two ways. First, you can go through any of the companies on the Participating list that do not have a notation of "Issuer Only" or of "Broker/Dealer Only." Second, you can go through one of the Participating companies annotated as "Broker/Dealer Only."
We realize that this is somewhat complicated, but please understand that it allows a large number of LPS employees to continue with their chosen companies while still protecting the interests of the employees and of the school district.
Remember: All employees wishing to make contributions to a TSA from their October paycheck must have a new "Salary Reduction Agreement" on file in the Accounting office no later than September 30, 1999. The forms are available at each school office, and in the district Accounting office.
To search the database, select what type of companies you wish to view, and enter your search criteria. If you wish to view all companies in a specific category, select that category, and leave the search keywords field empty. |
