S-4003.2 _______________________________________________
SENATE BILL 6506
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Senators Bauer and Winsley
Read first time 01/20/98. Referred to Committee on Financial Institutions, Insurance & Housing.
AN ACT Relating to tax deferred annuities for school employees; and amending RCW 28A.400.250.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 28A.400.250 and 1984 c 228 s 1 are each amended to read as follows:
The
board of directors of any school district, the Washington state teachers'
retirement system, the superintendent of public instruction, and educational
service district superintendents are authorized to provide and pay for tax
deferred annuities for their respective employees in lieu of a portion of
salary or wages as authorized under the provisions of 26 U.S.C., section
403(b), as amended by Public Law 87‑370, 75 Stat. 796((, as now or hereafter
amended)). The superintendent of public instruction and educational
service district superintendents, if eligible, may also be provided with such
annuities.
At
the request of at least five employees, the employees' employer shall arrange
for the purchase of tax deferred annuity contracts which meet the requirements
of 26 U.S.C., section 403(b), ((as now or hereafter amended,)) for the
employees from any company the employees may choose that is authorized to do
business in this state ((through a Washington-licensed insurance agent))
that the employees may select. Payroll deductions shall be made in accordance
with the arrangements for the purpose of paying the entire premium due and to
become due under the contracts. Employees' rights under the annuity contract
are nonforfeitable except for the failure to pay premiums.
The
board of directors of any school district, the Washington state teachers'
retirement system, the superintendent of public instruction, and educational
service district superintendents shall not restrict, except as provided in this
section, employees' right to select the tax deferred annuity of their choice ((or
the agent, broker, or company licensed by the state of Washington through which
the tax deferred annuity is placed or purchased,)) and shall not place
limitations on the time or place that the employees make the selection.
The board of directors of any school district, the Washington state
teachers' retirement system, the superintendent of public instruction, and
educational service district superintendents may each adopt rules regulating
the sale of tax deferred annuities which: (1) Prohibit solicitation of
employees for the purposes of selling tax deferred annuities on school premises
during normal school hours; and (2) ((only permit the solicitation of
tax deferred annuities by agents, brokers, and companies licensed by the state
of Washington; and (3))) require participating companies to execute
reasonable agreements protecting the respective employers from any liability
attendant to procuring tax deferred annuities.
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