Common use of Tax Sheltered Annuity Program Clause in Contracts

Tax Sheltered Annuity Program. 1. When the Employee wishes to obtain the benefits of Section 403(b) of the Internal Revenue Code (IRC) of 1986, as amended, by participating in an annuity purchase program of the Employer; the annual rate of salary otherwise payable to the Employee shall be reduced and will be applied to the purchase of a nonforfeitable annuity contract for the Employee. It is understood and agreed that such annuity is to be purchased at the request of the Employee under a program adopted by the Employer and that the Employee hereby accepts the provisions of that program, and that the Employer does not guarantee such annuity. 2. A salary reduction agreement between the parties to this agreement may not be made more than one time during any taxable year of the Employee. 3. The Employee releases all rights, present and future, to receive any or all the amounts to be used by the Employer as premium payments in any other form. 4. No provision of this agreement shall affect the Employer's right to discharge the Employee, with or without cause. 5. The employee acknowledges that if his/her contributions to Code Section 403(b) tax - sheltered annuity accounts exceed the IRC Limits, the excess is currently treated as taxable income. The employee shall be responsible for the payment of any additional income taxes, employment taxes, excise taxes, penalties and/or interest. The IRC limits are the limitations imposed under Internal Revenue Sections 403(b), 402(g), 415 and any other limitations that may be imposed under the IRC. The Board shall require the Provider to calculate the limit of the employee contribution. 6. The Board shall require the Provider of a tax sheltered annuity or deferred compensation plan that meets the requirements of Internal Revenue Code (IRC) Section 403 (b), Ohio Revised Code 9.91 and Board Policy, to agree to defend, indemnify and hold harmless the Board of Education, all of its members, officers, employees and agents from and against all claims, suits, liability, expenses, damages and loss of any kind to any person including attorney fees, which may arise out of the offering, implementation, and administration of an annuity provided by the Provider's agents, employees or any other person acting on the Provider's behalf. 7. The Board shall require that the provider agree to accept responsibility for all costs, expenses, fees and any damages incurred by the Board and/or the annuitant in connection with the implementation, administration and total operation of the Plan by reason of a challenge to the maximum exclusion allowance computed for any participant of the Plan. 8. The Board shall require that the Provider comply with all Board rules, policies and regulations covering the Plans, including solicitation of Board employees and calculation of maximum exclusion allowances for all employee reductions designated to the Provider and its Plans. 9. Any information provided by the Board shall be treated as confidential and shall not be used by the Provider its agents and/or employees for any purpose other than to carry out their responsibilities under the annuity. 10. There must be a minimum of three (3) employees initially enrolled in an annuity purchase program, and there is a ten (10) annuity program limit.