403(b) Procedures:

Los Angeles Community Colleges
City East Harbor Mission Pierce Southwest Trade-Technical Valley West

OFFICE OF THE CONTROLLER

Mrs. Jeanette L. Gordon, Controller.

Date: January 3, 2008
To: Los Angeles Community College District Employees TSA Agents and/or Brokers
Subject: 403(b) Tax-Deferred Retirement Savings Plans Procedures

To comply with Internal Revenue revisions regarding tax shelter annuity deductions, the Los Angeles Community College District Disbursements Branch, has implemented the following guidelines:

• Agents Signature no longer required anywhere.



• You must first establish your account with a provider before submitting the Salary Reduction Agreement to the District office.



• Effective January 1, 2008, the Federal basic limits for Tax Deferred Retirement Savings (TSA) under 403(b) remain the same at $15,500. The basic limit under 402(g)(8) special rule limit is $3,000 annually up to $15,000. To qualify, employees must have at least 15 continuous years of service with LACCD. An additional $5,000 contribution is available for employees 50 years of age or older.



• Forms:
  • The District's Salary Reduction Agreement for Tax Shelter Annuities (TSA).
  • The MAC/TSA Verification and Certification Form, signed by the employee.
  • Termination Form (if necessary) is required for termination of any TSA transactions and must be signed by the employee.


• The Maximum Allowable Contribution (MAC) worksheet is required if you are under age 50 and want to contribute more than $15,500 in 2008 or if you are age 50 or older and want to contribute more than $20,500 in 2008. This form verifies the amount of the salary reduction for 403(b) plan participation. Computerized forms from the provider or agent are also acceptable in lieu of the worksheet.



• Amendment changes will continue to be limited to two (2) per calendar year.



• Incomplete application packets will not be processed by the TSA Administrator and will be returned to the employee and/or agent for completion.



• Employees should consult their agent/broker or TSA Administrator (213) 891- 2209 for any questions regarding the completion of any TSA forms.

Jeanette Gordon
Chief Financial Oficer/Treasurer
Operation Divisions