Date Posted: 06/07/2005
All regular benefits-eligible employees of Clayton
State University are eligible to participate in the Tax
Sheltered Annuity (TSA) program, a voluntary
supplemental retirement program.
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The TSA program is a qualified plan under Section
403(b) of the Internal Revenue Code. Investments are
made through life insurance companies and mutual fund
companies licensed to do business in the State of
Georgia and approved by Clayton State University. Tax
sheltered annuities permit employees to defer payment of
federal income taxes on a portion of their income to
later periods. Such taxes are not due until the funds
All regular, benefits-eligible employees may elect to
purchase a TSA at any time. The TSA will become
effective on the first day of the month following such
Voluntary contributions from the employee only are
made through payroll deduction. There is no matching
contribution by the state or Clayton State University
for the TSA. An employee must execute a salary reduction
agreement form authorizing the Office of Human Resources
& Services to reduce future earnings and purchase a TSA
with the chosen company.
The maximum amount of salary which will qualify each
tax year for tax deferment must be determined annually
by the employee and his or her agent. This determination
is necessary in order to avoid violating the IRS
regulations regarding exceeding the maximum allowed tax
deferment. A new salary reduction form must be submitted
to the Office of Human Resources & Services when this
calculation shows that the contributions amount must be
It is the employee's responsibility to make his or
her own determination with regard to the selection of
annuities and the federal income tax status of
contributions. Clayton State University assumes no
liability or responsibility either for federal income
tax aspects of the TSA program or for the terms and
provisions of any annuity contracts issued thereunder.
Employees may stop the TSA payroll deduction at any
time by submitting a request to the Office of Human
Resources & Services, which will go into effect on the
first day of the month following receipt of the request.
Withdrawal of a TSA account value is available at
termination from employment or upon reaching age 59 1/2.
Clayton State University maintains a list of approved
vendors (companies). This list is available in the
Office of Human Resources & Services.
Representatives of approved carriers are not
authorized to initiate contact with employees. Employees
interested in a TSA should contact one of the listed
representatives of the carrier of their choice to obtain
information and to secure forms to apply for the program
of their choice.
Authorized representatives are permitted to make
sales presentations to eligible employees at Clayton
State University only at the employee's request and may
not solicit business with any employee unless contacted
first by the employee.
Representatives of carriers are permitted at Clayton
State University as guests and are expected to comply
with all applicable rules and regulations.
No campus mailings or telephone campaigns are
permitted to campus offices.
The providing of gifts or monetary rewards in
exchange for information on newly hired employees is
All carrier representatives are expected to abide by
the parking regulations in effect.
Carrier forms are the responsibility of the carrier
and the employee. A Salary Reduction Agreement must be
submitted to the Office of Human Resources & Services.
Any Salary Reduction Agreement submitted which is
incorrect or incomplete will be returned to the
employee. It is the responsibility of the employee to
resubmit a corrected Salary Reduction Agreement within
the eligibility period. The final Salary Reduction
Agreement submitted will determine the effective date of
Carrier representatives must be familiar with the
benefits provided under TRS and with applicable Georgia
laws, Board of Regent rules and regulations, and
Internal Revenue Service Code.
Clayton State University reserves the right to limit
or revoke the solicitation privileges of any
representative or carrier at its discretion.
All TSA funds will be forwarded by Clayton State
University to carriers within 10 business days after the
close of each month.