403(b)/457(b) Plans
As an employee of Saugus Union School District, you are eligible to participate in a Tax Shelter Annuity (TSA). You may begin participation in this plan the 1st of month following your date of hire or at any time after that. This program enables you to contribute (via a pre-tax salary reduction) a portion of your salary and have it deferred to a TSA annuity company of your choice. You must choose a TSA annuity company from the list of approved vendors which can be found at www.403bcompare.com.
There are 10 deductions each year (no deductions for July and August pay-periods). The minimum contribution amount is $25 per month. The annual maximum basic contribution for 2024 is $23,000. If you are over age 50 you are also eligible to contribute an additional $7,500 for 2024. If you have 15 years of service with the district you may be eligible to contribute an additional amount (check with the benefits department for eligibility).
To sign up for the 403(b) plan, you must contact SchoolsFirst or a financial broker of your choice. SchoolsFirst or your broker will help you complete the necessary Salary Reduction Agreement (SRA) form as well as set up the account with the annuity company. Once your account with the vendor has been established and is ready for contributions, you will need to submit the SRA form to SchoolsFirst in order to begin your payroll deduction. Changes or terminations of your TSA may be made at any time throughout the year. There is no limit on how many changes an employee can make during a year.
In addition, the district offers a 457(b) plan through SchoolsFirst. The 457(b) plan allows you to withdraw your money for specific reasons with fewer tax penalties than the 403(b) plan. The 403(b) plan has strict tax penalties and is less fluid than the 457(b) plan. The 457(b) plan has a separate annual maximum contribution amount so you can contribute the maximum amount to your 403b and also participate in the 457(b) plan. Speak to your financial advisor to discuss which plan is best for your needs.
If you are interested in participating in this program or have questions, you can contact the Benefits Department at 661-294-5300 ext. 5192 or our Third Party Administrator, SchoolsFirst at 800.462.8328 ext. 4727.
To make changes to your existing 403(b) plan please complete the Salary Reduction Agreement and submit it to SchoolsFirst.
403(b) Salary Reduction Agreement
To make changes to your existing 457(b) plan please contact SchoolsFirst at 800 462.8328 ext. 4727.