tax sheltered annuity by rickman1

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									401(k) TAX SHELTERED ANNUITY PLAN                                                                       B-335


Purpose.
SWWDB is committed to providing its employees with a comprehensive pay and benefits package comparable
to other employers within its service area. Consistent with its overall compensation philosophy, this policy
establishes that SWWDB shall make a tax sheltered annuity plan for employees and contribute a specified
amount to each eligible employee’s plan as a way of creating an employee retirement fund.

Policy.
SWWDB offers employees the opportunity to plan and invest for their long-term security through a 401(k) tax
sheltered annuity plan. As part of it’s comprehensive compensation package, SWWDB will automatically
contribute to the plan for eligible participants. In addition, SWWDB offers eligible employees the opportunity to
make their own contributions to the plan.

Eligible employees include all regular and leased employees who are scheduled to work 32 or more hours per
workweek. An employee must work a minimum of 1,000 hours to complete a year of vesting service. In
addition, the employee must exceed 500 hours of service to avoid a break in vesting service. Eligible
employees may enroll in the program on January 1 or July 1 once eligibility requirements have been met.

SWWDB designates the Executive Director as Plan Trustee. SWWDB, through the Plan Trustee, is
responsible for:

          Preparing and maintaining an investment policy that will serve as the investment guidance strategy for
          all funds.
          Reviewing and analyzing plan financial data on a regular basis the competitiveness of plan investment
          practices
          Insuring that employees are receiving optimal investment plan opportunities
          Modifying plan design and investment choices as necessary
          Complying with tax and legislative issues
          Selecting talented and ethical fiduciary advisors
          Communicating the retirement plan design, changes, and opportunities in clear, concise language to
          all employees.

Each eligible employee is responsible for:

          Reviewing all SWWDB 401(k) plan communications
          Recognizing the need to evaluate and combine the SWWDB plan with other available retirement
          resources such as Social Security and personal savings.
          Selecting the investment funds appropriate for their personal circumstance
          Monitoring performance of selected investment funds
          Responding to plan changes or choices in a timely manner.

At least annually, the Plan Trustee shall review with the Executive Committee the investment policy and plan
financial statements to determine if changes in investment strategy may be necessary.

The SWWDB provides a discretionary contribution of four percent (4%) for each eligible employee. In
addition, each eligible employee may make an employee contribution of up to fourteen percent (14%) of
his/her gross salary on a tax-deferred basis. SWWDB will make a matching contribution of one-half of the
employee’s contribution up to a maximum of seven percent (7%).

The SWWDB Executive committee will set the discretionary and matching contribution percentages each year



                                                 Southwest Wisconsin Workforce Development Board
                                                                      1370 N Water Street - Post Office Box 656
Page 1 of 2                                                                  Platteville, Wisconsin 53818-0656
401(k) TAX SHELTERED ANNUITY PLAN                                                                       B-335


to take effect on the preceding January 1st.

Employee contributions and matching contributions are 100% immediately vested. Discretionary contributions
are vested based on the employee’s of service according to the following chart:

                                          Years                Vested
                                        of Service           Percentage
                                        Less than 1              0%
                                             1                   0%
                                             2                   20%
                                             3                   40%
                                             4                   60%
                                             5                   80%
                                             6                  100%

Employees may elect to withdraw or receive a hardship distribution of all or part of the vested portion of his/her
funds subject to the requirements of the plan. For the purposes of a hardship distribution, hardship is defined
as an immediate or heavy financial need of the employee where the employee lacks other available resources.
The plan describes the specific definitions of immediate and heavy financial need. However, financial need
generally considered immediate and heavy includes:

        Expenses incurred or necessary for medical care of employee, employee’s spouse or dependents;
        Purchase of a principal residence for the employee;
        Payment of tuition and related educational fees for the next twelve (12) months of post-secondary
        education of the employee, employee’s spouse or dependents;
        Need to prevent eviction of the employee from or a foreclosure on the mortgage of the employee’s
        principal residence; or
        Funeral expenses of a member of the employee’s family.



Policy Adopted:    December 10, 2004




                                                 Southwest Wisconsin Workforce Development Board
                                                                       1370 N Water Street - Post Office Box 656
Page 2 of 2                                                                   Platteville, Wisconsin 53818-0656

								
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