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Board amends 403(b) plan document to let employees defer more severance pay
Summary
The board approved an amendment to the district's 403(b) plan document to allow employees to place more severance payments into a tax-deferred shelter; Treasurer TJ Cusick said the change is administrative and costs the district nothing.
The Worthington City Board of Education on June 10 approved an amendment to the district's 403(b) plan document that allows employees to defer more of severance payments into tax-deferred accounts.
Treasurer TJ Cusick explained the change is an administrative amendment to the 403(b) document, the public-sector equivalent of a 401(k), and that the amendment "allows our employees to tax shelter more of their severance payment; costs the district nothing." The motion to amend the plan as described in enclosure E1 was moved, seconded and carried by recorded vote.
The board did not record further debate; the amendment updates plan document language to conform with Internal Revenue Code requirements, as noted in the agenda packet.
What happens next: The district will file the amended 403(b) plan document and make the option available to eligible employees per plan rules.
Sources: Treasurer TJ Cusick remarks and agenda materials referenced at the June 10 meeting.
