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Board approves 403(b) salary-reduction plan; staff participation and plan types explained
Summary
Clinton City Schools adopted a 403(b) salary-reduction plan that district staff described alongside other retirement offerings (TCRS, 401(k), 457); administrators said all employees are eligible and the district is not required to audit plan assets because contributions pass through to third-party administrators.
Clinton City Schools approved a 403(b) salary-reduction plan after administrators reviewed retirement options and compliance distinctions among plans.
A staff presenter explained the district’s retirement offerings, including the Tennessee Consolidated Retirement System (TCRS) for teachers and certain city plans, 401(k) and 457 options, and the 403(b) salary-reduction arrangement. The presenter said contributions to a 403(b) are forwarded to a third-party plan administrator and the district does not hold or audit the assets, which changes reporting requirements compared with district-controlled plans.
The presentation noted the state’s TCRS structure distinguishes teacher and noncertified plans, and that the district also offers Roth and traditional options for voluntary plans. The presenter disclosed that some administrators, including the presenters, participate in the plans and said there are no eligibility restrictions that would bar employees from participating other than normal full-time/part-time criteria.
Board members voted to approve the 403(b) salary-reduction plan by voice vote. Staff said the plan documentation and administrative steps will follow typical implementation procedures and that human-resources staff will assist employees during onboarding and enrollment periods.
No changes to statutory retirement systems were proposed; the action establishes the locally administered 403(b) payroll-reduction option and related administrative practices.
