AUGUSTA COUNTY PUBLIC SCHOOLS
TABLE OF CONTENTS
Directories Page 3
Payroll/Benefits Preview Page 8
Leave Benefits Page 11
Sexual Harassment Policy Page 13
Family and Medical Leave Page 14
Cafeteria Plan Page 24
Southern Health Insurance Page 27
COBRA Notification Page 30
VRS Optional Life Insurance Page 35
Tax Sheltered Annuities Page 37
AUGUSTA COUNTY PUBLIC SCHOOLS
Equal Employment Opportunity
It is the policy of the Augusta County School Board to comply with all
applicable state and federal laws regarding non-discrimination. The
Augusta County Public School system will not discriminate on the basis
of sex, race, religion, national origin, disability, or age in employment or
educational programs and activities.
Notice to Employees
This handbook is not an employee contract, nor is it an invitation to
contract. It does not create any employee rights or benefits. The
handbook provides a summary of Augusta County School Board policies
and information that will be of practical use to employees. The complete
policies can be found in the Augusta County School Board
Administrative Manual. Policies are subject to change at any time. This
handbook supersedes all prior handbooks, manuals, and policy
THE SCHOOL BOARD OF AUGUSTA COUNTY
The citizens of Augusta County elect a seven member School Board for a four-year
term. Each magisterial district has one representative. The Augusta County School
Board meets the first Thursday of each month at 7:30 PM at the Government Center
in Verona unless alternative dates, times, and/or sites are scheduled. The current
School Board members are:
DISTRICT NAME ADDRESS PHONE TERM
South River Leigh Ann Hinson 48 Seminole Circle 337-9267 (H) 12/31/2007
Stuarts Draft, VA 24477
North River Nicholas T. Collins 850 Hotchkiss Road 337-7296 (H) 12/31/2007
Churchville, VA 24421 885-7224 (W)
Beverley Manor Roger L. Zirkle 139 Jericho Road 886-5012 (H) 12/31/2007
Fishersville, VA 22939
Middle River David R. Shiflett 368 Patterson Mill Road 363-5662 (H) 12/31/2007
Grottoes, VA 24441
Riverheads Chad D. Shomo 581 Haytie Lane 886-1782 (H) 12/31/2007
Swoope, VA 24470 332-4805 (W)
Pastures Patsy F. Blackwell 3609 Churchville Ave. 337-6773 (H) 12/31/2007
Churchville, VA 24421 433-4643 (W)
Wayne Jeff A. Moore 4 Christopher Court 946-8691 (H) 12/31/2007
Waynesboro, VA 22980 234-8236 (W)
AUGUSTA COUNTY SCHOOLS PHONE LIST
LOCATION/ADDRESS PHONE NUMBERS ADMINISTRATORS OFFICE STAFF
Beverley Manor Elem 885-8024 Dawn Young Donna Kirtley
116 Cedar Green Road 885-8025
Staunton, VA 24401 885-5835
Cassell Elem 946-7635 Mindy Garber Lisa Kirby
1301 Rockfish Road 885-7514 Denise Martin
Waynesboro, VA 22980 946-7637 (FAX)
Churchville Elem 337-6036 John Chase Katherine Sheets
3710 Churchville Avenue 337-6037 (FAX) Kimberly Kiser
Churchville, VA 24421
Clymore Elem 245-5043 Charles Wymer Sandra Peters
184 Fort Defiance Road 245-5095 (FAX) Jane Wright Teresa Ann Garber
Fort Defiance, VA 24437
Craigsville Elem 997-9184 Kirk Johnson JoAnn McLain
100 East First Street 997-9186
Craigsville, VA 24430 997-0432 (FAX)
Ladd Elem 946-7630 Kathleen Overstreet Kim Vires
1930 Rosser Avenue 885-7614
Waynesboro, VA 22980 946-7631 (FAX)
North River Elem 350-2463 Katherine Ralston Sheila Griffin
3395 Scenic Highway 885-3884 (FAX)
Mt Solon, VA 22843
Riverheads Elem 337-2535 Bob Bateman Georganne Ludt
17 Howardsville Road 337-1454 (FAX) Karen Garber Linda Higgins
Staunton, VA 24401
Stuarts Draft Elem 337-2951 Diane Bates Melissa Callison
63 School Blvd. 946-7620 (FAX) Brenda Walton Kimberly Pickett
Stuarts Draft, VA 24477
Stump Elementary 337-1549 Tina Kiracofe Teresa Beard
115 Draft Avenue
Stuarts Draft, VA 24477
Verona Elem 248-0141 Marguerite McDonald Patty Borden
1011 Lee Highway 248-0562 (FAX)
Verona, VA 24482
Wilson Elem 245-5040 David Shriver Sherri Robords
127 Woodrow Wilson Ave 245-5041
Fishersville, VA 22939 245-5042 (FAX)
LOCATION/ADDRESS PHONE NUMBERS ADMINISTRATORS OFFICE STAFF
Buffalo Gap High 337-6021 William Deardorff Kelly Campbell
1800 Buffalo Gap Hwy 337-6022 Douglas Shifflett Roberta Armstrong
Swoope, VA 24479 337-6025 Fred Keeling Kristy Ashby
337-6236 (FAX) Cheryl Etling
Fort Defiance High 245-5050 Paul Hill Tina Souders
195 Fort Defiance Road 245-5054 (FAX) Frank Wade Dorothy Vandevander
Fort Defiance, VA 24437 Donna Abernathy Dana Wade
Jack Tucker Rebecca McCarty
Riverheads High 337-1921 Steve Barnett Sandy Katherman
19 Howardsville Road 337-2530 Dennis Case Peggy Ribet
Staunton, VA 24401 337-3247 Gordon Johnston Terry Rohr
337-3808 Cheri Armstrong
Stuarts Draft High 946-7600 Nate Collins Kim Coffey
1028 Augusta Farms Road 886-8500 Max Lowe Vivian Lough
Stuarts Draft, VA 24477 946-7605 (FAX) Steve Hartley E. Lo Smith
Wilson Memorial High 886-4286 Larry Landes Wendy Schneider
189 Hornet Road 885-4480 Kay Menk Diane Layman
Fishersville, VA 22939 949-8643 Tim Harrison Angie Kessler
886-4611 (FAX) Loree Landes
Beverley Manor Middle 886-5806 William Lobb Denise Houser
58 Cedar Green Road 886-4019 (FAX) Nancy Miller Denise Lyle
Staunton, VA 24401 Karen Corbin
Stewart Middle 245-5046 Bill Roberts Emily Ryder
118 Fort Defiance Road 245-5049 (FAX) Jackie Hartley Cathy Terry
Fort Defiance, VA 24437 Leah Owens
Stuarts Draft Middle 946-7611 Betsy Agee Ellen Carey
1088 Augusta Farms Road 885-2542 Mike Conner Susan Dillow
Stuarts Draft, VA 24477 946-7613 (FAX) Jason Crutchfield Celeste Trochez
Wilson Middle Don Curtis
Fishersville, VA 22939
Valley Vocational 245-5002 Darla Miller Marsha Sensabaugh
Technical Center 943-5511 Willie McNeal Carol Rubush
49 Hornet Road 245-5006 (ETP) Vivian Gray (ETP)
Fishersville, VA 22939 885-0407 (FAX) June Blosser
Central Shen Valley Reg 245-5088 Linda Cauley Marsha Buehner
Governor’s School 245-5089
49 Hornet Road 886-6473 (FAX)
Fishersville, VA 22939
CENTRAL OFFICE STAFF
Dr. Gary D. McQuain, Division Superintendent
Ms. June H. Stickley, Administrative Secretary/Clerk of the Board
Mrs. Ann G. Beaty, Receptionist
Mrs. Jennifer H. Shiflet, Receptionist
Mr. George R. Earhart, Assistant Superintendent for Administration
Ms. Mary Davis, Secretary - Administration
Mr. Charles H. Huffman, Attendance Coordinator
Mrs. Sharon C. Kern, Secretary – Records
Ms. Judith M. Via, Secretary - Records
Mr. Dwight M. McAllister, Assistant Superintendent for Personnel
Mrs. Janine A. Stringham, Secretary - Personnel
Mr. Eric W. Bond, Assistant Superintendent for Maintenance and Operations
Mr. William W. Schindler. Director of Transportation/Athletics
Mr. Ron N. Houser, Director of Maintenance and Operations
Mr. Doug C. Ramsey, Building and Grounds Manager
Mr. Robert N. Glenn, Bus Route Coordinator
Ms. Robin J. Puffenbarger, Secretary - Maintenance
Mrs. Nancy M. Hutchison, Secretary - Garage
Mr. Mark E. Lotts, Director of Business and Finance
Mrs. Deborah R. Berrington, Benefits and Purchasing Manager
Mrs. Renee V. Moomau, Payroll Accountant
Mrs. Judy M. Falls, Accountant, Audit/Budget
Mrs. Ann-Marie Harvey, Accountant
Mrs. Teresa S. Bishop, Cost Accountant
Mrs. Sandy Neff, Food Service Manager
Mrs. Catherine W. Johnson, Accountant, Food Service
Dr. Pamela K. Ungar, Assistant Superintendent for Instruction
Mr. L. Harvey Almarode - Math, Art, Computer Coordinator
Mr. Terry J. Lafon – Social Studies, Art
Mr. Gordon H. Mowen - Testing
Mrs. Dorothy Donat - Elementary K-2, Staff Development, Title I
Mrs. Jennifer A. Groh - Science, Vocational Education
Mr. Brian D. Shirley - Language Arts, Foreign Language
Mr. Ronald C. Abernathy - Phys Ed, Health, Driver Ed, Volunteer, Textbooks
Mrs. Elaine F. Almarode – Guidance, Gifted, Music
Mr. Gary R. Bryant – Technology Administrator
Mrs. Lori Cox – 21st Century Grant Coordinator, Media Services Coordinator
Mrs. Kathy C. Tucker – Differentiation Specialist
CENTRAL OFFICE STAFF
Instructional Staff (continued)
Mrs. Lesley H. Dofflemyer, Secretary - Instruction
Ms. Michelle N. Balderson, Secretary - Instruction
Mrs. Teresa L. Hester, Secretary - Instruction
Mrs. Tonia G. Broome, Secretary - Title I
Ms. Linda DePari, Secretary – 21st Century Grant
Mr. Bruce W. Catlett, Computer Technician
Mr. Paul Missman, Computer Technician
Mr. Michael J. Tremel, Computer Technician
Mrs. Paige Kite, Computer Technician
Mr. Jeffrey Waldron, Computer Technician
Mr. Steven Matthew Parrish, Computer Technician
Mrs. Deborah H. Wheeler, Secretary - Technology Center
Mr. Frank H. Walters, Data Processing Manager
Mrs. Judy P. Howard, Computer Technician
Ms. Lavonna K. Dunaway, Textbook Coordinator
Mr. Glenn Cash, Textbook Clerk
Dr. Patricia A. Devitt, Director – Pupil Services
Mrs. Donna A. Bryant, Facilitator - Special Education
Mrs. Tammy V. Sours, Facilitator - Special Education
Ms. Catherine B. Smith, School/Community Health Coordinator
Mrs. Julie M. Botkin, Secretary
Mrs. April D. Kernan, Secretary
Mrs. Beverly S. Coltrane, School Psychologist
Mrs. Pam K. Dewitz, School Psychologist
Dr. Koressa K. Malcolm, School Psychologist
Mrs. K. Michele Gamble, School Psychologist
Mr. Wayne Higgins-Barry, School Psychologist
Ms. Sharon K. Good, Visiting Teacher/School Social Worker
Mr. Saul Harris, Visiting Teacher/School Social Worker
TBA, Visiting Teacher/School Social Worker
Shenandoah Valley Regional Program
Mrs. Judy S. Sorrell, Program Director
Mrs. Paula D. Kirby, Secretary
Mr. Stephen P. Troxell, Director
Mrs. Andrea L. Riegel, Assistant Director/Education Coordinator
Mrs. Sandra S. Neff, Coordinator
Mr. Dwight Mongold, Operations Manager
Mrs. Betty A. Grant, Secretary
Ms. Kelly D. Clifton, Secretary
AUGUSTA COUNTY SCHOOL BOARD
NEW EMPLOYEE INFORMATION FEDERAL/STATE TAX WITHHOLDING
Your benefits can be as important to All employees are required to
you as your paycheck. When you begin complete a Federal Form W-4 (Employee’s
work, you will receive a New Employee Withholding Allowance Certificate) and VA-4
Packet, which describes many of the benefit (Virginia Income Tax Withholding Certificate)
options in detail. Read the information as when hired. The amount of tax withheld will
soon as possible because there are depend on filing status and number of
decisions you need to make within the first withholding allowances.
30 days of employment.
PAY PERIODS/DIRECT DEPOSIT
All employees are paid on a monthly The Federal Insurance Contributions
basis on the last calendar day of each Act (FICA), otherwise known as Social
month. December payment will be Security, covers all employees. After a
deposited on last teaching day of the month. qualifying number of working years, Social
Each employee is paid in twelve Security will provide an income to you or
installments. Payments begin in July for your family in the event of retirement,
twelve-month contracts, August for eleven- disability, or death.
month contracts, and September for ten- Both you and your employer make
month employees. identical contributions to Social Security.
The School Board will pay all The amount contributed is a percentage of
your earnings up to a maximum level, as set
employees on Contract or Letter of
by Congress each year. Your portion will
Agreement by electronic direct deposit
automatically be deducted from your
(see Regulation 5.910 of the Administrative
paycheck. The total FICA tax is shown on
Manual). Those payments will be deposited
your paycheck in two parts: Social Security
to the employee’s bank, savings and loan, or
credit union account. Direct Deposit
If you are disabled or nearing
earnings statements will be delivered to
retirement, you should contact a Social
employees at their home schools during the
Security office in your vicinity. You must fill
school year and mailed to their home during
out an application form in advance, as
the summer break. New employees will
benefit payments are not automatic.
receive a check mailed to their home
address the first pay period so payroll can
verify account numbers with individual WORKER’ COMPENSATION
If an accident or illness arising from,
and occurring in, the course of an
UNEMPLOYMENT INSURANCE employee’s job, causes him or her to miss
work, the employee may be entitled to
Augusta County is required by law to
compensation to help offset the loss of
cover all employees with unemployment
wages during the period he or she is unable
insurance. The State of Virginia, not
to work. The employee should report any
Augusta County, handles unemployment
work-related accident to his or her
insurance benefits. If you are terminated
supervisor immediately. If the employee
under certain circumstances, you may be
requires medical attention, it will be
eligible for unemployment compensation.
furnished at no cost to the employee. The
Questions about unemployment benefits
School Board has a panel of physicians to
should be directed to the Virginia
treat Workers’ Compensation
illnesses/injuries. Employees should consult
the personnel office for additional
As a new employee, you are eligible
to enroll in various employee benefits within The School Board offers voluntary
specified time limits (usually 30 days from dental insurance through Delta Dental.
the date of appointment unless otherwise Employees may purchase preventive and
indicated). If you fail to enroll within the time basic coverage for themselves or
limits, you must wait for the annual open dependents.
Open enrollment for health GROUP TERM LIFE INSURANCE
insurance and the Cafeteria Benefits Plan
take place during the month of November for The School Board pays for group
changes effective January 1. During open term life insurance equal to twice your
enrollment, you have the opportunity to annual salary rounded to the next highest
enroll, add dependent coverage, cancel thousand to those covered under the Virginia
coverage, or make other changes. Retirement System (see RETIREMENT).
You will not be permitted to change
any benefit election except during the
designated open enrollment period unless OPTIONAL TERM LIFE INSURANCE
you experience a Family Status change. A
Family Status change is defined as a Employees may purchase additional
marriage, divorce, death of a spouse or group term life insurance through the
child, birth or adoption of a child, Virginia Retirement System. Enrollment is
employment or termination of employment of voluntary, with automatic acceptance if you
spouse, or change in your employment apply before the end of your first month of
status. employment. After this initial time period,
you may still enroll; however, you will be
required to provide proof of good health.
The cost of term life insurance varies
depending on your age and salary.
All contracted employees scheduled
to work at least half time (more than 20
hours per week) are eligible to take TAXATION OF THE INSURANCE
advantage of the health insurance plan
offered by the School Board. Part time This is also referred to as “Taxable
employees will be responsible for partial Fringe” on paycheck stubs. Basic Group and
payment of premiums based on the Optional Group Life Insurance are subject to
percentage of contract that they work. imputed income taxes. This means that if
Southern Health is our current your coverage under both plans exceeds
carrier for health insurance. Southern $50,000 (including spouse and children’s
Health is a managed health care system. A coverage), the value of the coverage in
POS (Point of Service) plan is available for excess of $50,000 may be subject to FICA,
employees selecting individual coverage. federal and state income taxes. The value
Employees covering dependents may used to determine imputed income is based
choose between two coverage options. The on a table provided by the IRS. The taxation
VirginiaValue POS plan and the amount varies, depending on the employee’s
VirginiaValue PPO plan are available, salary and age.
depending on how you wish to access care
for dependents. How an employee
accesses care will determine the amount of RETIREMENT
money he/she will pay out of pocket for
claims incurred. Read the enrollment packet The Virginia Retirement System
of information carefully for a full provides retirement benefits for professional
understanding of how each plan works. and support personnel working a minimum
The School Board pays for the of 7 hours per day. The School Board pays
employee portion of the insurance coverage. the cost of providing this benefit.
Premiums to cover dependents are
deducted from your paycheck. CAFETERIA BENEFIT PLAN
As a new employee, you have 30
days to enroll in the health insurance plan.
Sections 125 and 129 of the Internal The Augusta County Federal Credit
Revenue Code enable the pre-tax treatment Union is located at the Augusta County
of certain benefit contributions within a Government Center in Verona. You must be
qualified cafeteria plan. Contributions to an employee of Augusta County or a relative
most health insurance plans, medical of an employee to be eligible for
reimbursement accounts, and dependent membership. To become a member, you
care reimbursement accounts can be simply complete a membership application
exempt from federal, state, and FICA taxes, (social security number is required) and
thereby increasing your take-home pay. make an initial deposit of $5.00.
The reduction in taxable income Applications are available at the Credit Union
does not affect County retirement benefits or in the payroll office. The following
but may slightly reduce your monthly Social services are available to members:
Security benefits upon retirement. 1. Checking accounts
The dependent care program allows 2. Savings accounts including regular
you to put aside funds in a dependent care share accounts, Christmas club
account on a pre-tax basis to reimburse accounts, and Certificates of Deposit.
yourself for the cost of child care, or adult 3. Loan Services
day care for an incapacitated spouse or 4. Payroll deductions for any of the above
dependent when those services make it named accounts
possible for you and/or your spouse to work. For membership information, call
You qualify to use this benefit if you are a the Credit Union office at 245-5706.
single parent; have a working spouse; your
spouse is a full-time student for at least five
months during the year while you are
working; or your spouse is disabled or TAX-SHELTERED ANNUITY
unable to provide for his/her own care.
The medical expense program Under Section 403(b) of the current
allows you to pre-tax funds to pay for health federal tax code, certain educational
expenses not covered by an insurance plan. agencies, such as Augusta County School
Before the plan year begins each Board, are allowed to offer all employees the
January 1, you can elect to deduct a set opportunity to participate in a special
amount of pre-tax dollars into your medical arrangement known as a Tax-Sheltered
or dependent care accounts. The amount Annuity (TSA). With a TSA, you can put
you specify will be deducted each month aside money today to build income for
from your paycheck during the plan year. retirement and get a “tax break” on these
When you submit proof of an eligible savings right now. By participating in a TSA,
expense, you will be reimbursed from your your contributions will be made on a pre-tax
account. Changes to your deduction amount basis. Further, any investment earnings will
can be made only during open enrollment or grow on a tax-deferred basis until
when there is an eligibility change in family withdrawal.
Family Medical Leave Act
Employees who have been
employed by the school board for at least 12 Sick leave is that leave earned by an
months and have worked at least 1,250 employee which may be used in the event of
hours during the 12 months prior to the leave illness, illness in the family, or death in the
can take up to 12 weeks of paid or unpaid immediate family. A maximum of 5 days
leave each fiscal year for one or more of the may be used for death in the family.
following reasons: Various employees earn sick leave
Birth of a child and care of the child for
the first year after birth. 10 month employees - 10 days per year
Placement of a child with the employee 11 month employees - 11 days per year
for adoption or foster care. 12 month employees - 12 days per year
Care of employee’s spouse, child, or Cafeteria employees - 6 days per year
parent who has a serious health Bus Drivers - 3 days per year (can be
condition. used for sick or emergency leave)
Personal serious health condition that
renders employee incapable of For employees on continuing
performing the essential functions of the contract (teachers/administrators), days
job. allowed for the coming year plus
accumulated days are in effect at the time
If possible, you must provide at least employee reports for duty. Those
30 days notice of the date when leave is to employees not on continuing contract must
begin. Any leave request under FMLA must report for duty to receive credit for sick leave
be supported by certification of a health care for the coming year.
provider. While on leave covered under For further details on the Augusta
FMLA, the employee’s health insurance County sick leave policy, refer to Policy
coverage will be maintained by the School 5.340 in the Administrative manual.
Board. Refer to the Administrative Manual,
Policy 5.330 printed in its’ entirety in this
Sick Leave Bank
A sick leave bank is available for
Personal Leave teachers, administrators, clerical, and
maintenance/garage support personnel. To
All 10 and 11 month teachers, enroll, an employee completes a Sick Leave
clerical, and support personnel are given 2 Bank Application form within the first 30 days
personal leave days per year. A maximum of employment and donates one day of
of 6 personal leave days can be his/her sick leave to the bank. For those
accumulated and used by an employee who fail to enroll at the time of hire, an open
during any one-contract year. enrollment period is held each year from
Personal leave is not subject to August 1 through September 1.
question regarding reasons for the request. Participation in the sick leave bank
The leave may be denied when the services is voluntary on the part of the employee.
of the employee are required on the date for Use of the bank is for personal illness or
which leave is requested. For more injury and requires enrollment in the plan for
information, refer to Policy 5.350 of the a minimum of six months prior to the illness.
Administrative manual. A doctor’s certificate is required before a
sick leave bank member can access his/her
entitlement. For further details, refer to
Policy 5.345 of the Administrative manual.
LEAVE BENEFITS (continued)
Jury duty or days served as a
Annual leave is earned by an subpoenaed witness in court cases are
employee on 12-month contract based on granted as Civil Leave with pay. An
the following table: employee who is granted Civil Leave can
keep any payments made by the courts.
Years Earned Earned Maximum
Service Per Year Per Month Carryover
0-3 12 1 24 Professional Leave
4-6 15 1.25 30
Professional leave may be granted
7-10 18 1.5 36 for purposes of instructional improvement or
11-15 21 1.75 36 improvement of job skills. Any teacher,
16 & over 24 2 36 principal, supervisor of other employees, or
support personnel may be granted time
Leave in excess of the maximum away from employment to attend workshops,
allowable accumulation will be dropped on conferences, classroom instruction, and to
the last day of July. Upon retirement or accompany students in a supervisory
termination, employees will be paid for capacity. The attendance of such meetings
accumulated annual leave (not to exceed the must be approved in advance and shall not
maximum allowable days) at the current result in loss of personal, annual, or sick
contracted salary rate per day. For further leave.
details, refer to Policy 5.360 of the
Personal Growth Leave
The definition of Personal Growth
Maternity Leave Leave is broad in its intent and cannot be
coupled with other Leaves granted by the
Maternity leave is covered School Board. Employees with 10
extensively in Policy 5.370 of the consecutive years Augusta County School
Administrative manual. This type of leave is Board service in their current job
defined as time away from work due to classification are eligible to apply. Personal
pregnancy, miscarriage, termination of Growth Leave is awarded on a first-come,
pregnancy, childbirth, and recovery first-serve basis. For further information,
therefrom. During maternity leave, only that refer to Policy 5.370 of the Administrative
portion certified by a physician as medically manual.
disabling may be charged to sick leave.
Requests for extended time off for personal
reasons and not medically required must be
submitted to the School Board for approval ALL ABSENCE/LEAVE POLICIES CAN BE
as Leave of Absence. FOUND UNDER PERSONNEL POLICIES
SECTION 5.300’s IN THE
SEXUAL HARASSMENT POLICY NOTIFICATION
ADMINISTRATIVE MANUAL, POLICY 5.105
The Augusta County School Board strongly disapproves of and does not
tolerate sexual harassment of any kind. All employees must avoid offensive or
inappropriate sexual behavior at work. All employees are responsible for
assuring that the work place is free from sexual harassment at all times and that
work activities are conducted in a professional manner.
The Augusta County School Board prohibits unwelcome sexual advances;
requests for sexual acts or favors, with or without accompanying promises,
threats, or reciprocal favors or actions; or other verbal or physical conduct of a
sexual nature which has the purpose or effect of adversely affecting an
employee’s performance or which creates a hostile or offensive working
environment. Prohibited conduct includes, but is not limited to, the following:
lewd or sexually suggestive comments; off-color language or jokes of a sexual
nature; slurs and other verbal, graphic or physical conduct relating to an
individual’s sex; or any display of sexually explicit pictures, greeting cards,
articles, books, magazines, photos, cartoons, or other depictions.
Complaints of sexual harassment will be promptly and carefully
investigated, and all employees are assured that they will be free from any and
all reprisal or retaliation from filing such complaints. Any employee who has a
complaint of sexual harassment at work by anyone, including managers,
supervisors, co-workers, visitors, clients, or customers, immediately should bring
the problem to the attention of Augusta County School Board officials.
Employees may bring the complaint to the attention of their supervisor, or if the
complaint involves supervisory personnel in the employee’s department or chain
of command, to another supervisor or manager, the Assistant Superintendent for
Personnel, or to the Division Superintendent.
The school division’s investigation will include interviews with all relevant
persons including the complainant, the accused, and other potential witnesses.
Employees are assured that the privacy of the complainant and the person
accused of sexual harassment will be kept strictly confidential.
The school division, through its managers, will review the findings with the
complainant at the conclusion of the administrative investigation. If the
investigation reveals that the complaint is sufficiently substantiated, the school
division’s management will take immediate and appropriate corrective action, up
to and including discharge, and actions will be taken to stop the harassment and
prevent its recurrence. If the complaint cannot be substantiated, immediate and
appropriate action will be taken to assure that affected employees are re-
acquainted with this sexual harassment policy.
Policy adopted: July 1, 1992 Augusta County School Board
FAMILY AND MEDICAL LEAVE
ADMINISTRATIVE MANUAL, POLICY 5.330
Any eligible employee is entitled, pursuant to the Family and Medical Leave Act (FMLA), to
unpaid leave for a combined total of twelve (12) weeks in a 12-month period for the
1. The birth and care of a newborn child;
2. The adoption or foster placement of a child;
3. To care for an employee’s spouse, parent, or child with a serious health condition;
4. A serious health condition that makes the employee unable to perform the essential
functions of the employee’s job
To be eligible for leave under this policy the employee must have at least twelve (12)
months of service (not necessarily consecutive) with the Augusta County school division
and have worked at least 1250 hours in the twelve months preceding the commencement of
the leave. Full-time teachers are deemed to meet the 1250-hour test.
In order to determine how much family and medical leave an employee has available, the
Augusta County school division will use the "rolling 12-month period method." An employee
would start at the point where the requested leave would begin and count back 12 months.
Any leave qualifying as family and medical leave and so designated under this regulation,
taken within the 12 months prior to the start of the requested leave, would reduce the
amount of family and medical leave currently available.
To the extent that an employee is entitled to paid leave under other Augusta County school
division policies, such paid leave shall be used concurrently with the unpaid family and
medical leave entitlement. Once any paid leave is exhausted, any remaining family or
medical leave is unpaid.
Notice to Employees of Their Right under the FMLA.
The Augusta County school division shall post in conspicuous places where employees are
employed, a notice explaining the FMLA’s provisions and providing information about the
procedure for filing complaints with the Department of Labor. Such notice must be posted
prominently where it can be seen by employees and applicants for employment and the text
must be large enough to easily read.
Information concerning the FMLA entitlement, employee obligations and this policy will be
included in the Augusta County school division handbook and other documents informing
employees of their rights.
Leave for the Birth, Adoption or Foster Placement of a Child
Upon request, any eligible employee shall be granted family and medical leave for the
purpose of caring for a newborn or newly adopted child or the placement of a foster child.
The employee’s entitlement to leave for a birth, adoption or foster placement of a child
expires at the end of the twelve-month period beginning on the date of the birth, adoption or
foster placement. Leave taken for the birth, adoption or foster placement of a child may be
taken intermittently or on a reduced leave schedule only if the assistant superintendent
agrees to such an arrangement.
FAMILY AND MEDICAL LEAVE (cont.)
Serious Health Condition of Employee
FMLA shall be provided for an employee’s serious health condition. A serious health
condition is defined as an illness, injury, impairment, or physical or mental condition that
requires either (i) inpatient care in a hospital, hospice, or residential medical care facility, or
(ii) continuing treatment by or under the supervision of a health care provider. The nature of
the condition must be such that it either caused a period of incapacity requiring absence
from work, school, or other regular daily activities for more than 3 calendar days, or, if left
untreated, would result in such a period of incapacity. To qualify for medical leave for an
employee's own serious health condition, the condition must make the employee unable to
perform the essential functions of his or her position. Employees are entitled, when
medically necessary, to take such leave on an intermittent or reduced leave schedule
except as provided below.
Serious Health Condition of Child, Spouse or Parent of Employee
Family and medical leave shall be provided when the employee is needed to care for his/her
spouse, child or parent with a serious health condition, as defined above. Employees are
entitled, when medically necessary, to take such leave on an intermittent or reduced leave
schedule except as provided below.
Rules for Intermittent and Reduced Schedule Leave
When permitted in this policy, intermittent and reduced schedule leave may be used until
the aggregate amount of such leave equals twelve weeks. If an instructional employee
requests intermittent or reduced leave for planned medical treatment for more than one day
a week, the employee may be required to elect either to (1) take leave for a particular
duration of time, not greater than the duration of the planned treatment, or (2) be
transferred to an alternative position. An instructional employee is one who provides direct
instructional service and whose presence in the classroom is necessary to the education
process. An instructional employee is a teacher, but not an instructional assistant, a
curriculum specialist, a counselor, or another administrator or specialist. The school division
may assign an employee to an alternative position with equivalent pay and benefits if that
better accommodates the employee’s intermittent or reduced schedule leave.
Rules for Husband and Wife Employed by Augusta County School Division
A husband and wife who are both eligible for family and medical leave and are employed by
the Augusta County school division shall be granted family and medical leave only for a
combined total of twelve weeks per year when the leave is taken for the birth, foster
placement, or adoption of a child or to care for the child after birth, adoption or foster
placement and to care for a parent with a serious health condition.
Employee Notice of the Need for Leave
Employees must provide at least thirty days notice of the need for family and medical leave.
If the need for the leave is not foreseeable, the employee or his/her designee must give
notice as is practicable. In requesting leave, employees shall not be required to use the
words family and medical leave, but shall provide sufficient information to make the division
aware of the need for the leave. The division shall inquire further of the employee if it is
necessary to determine whether family and medical leave applies.
FAMILY AND MEDICAL LEAVE (cont.)
Certification of the Need for Leave
The Augusta County school division may require, and the employee must provide,
certification of the need for family and medical leave. Such certification shall be provided on
the forms provided by the Personnel Office. If any required medical certifications are not
provided, leave may be denied until the certification is provided. The employee will be
allowed at least 15 days to provide the required certification.
The medical certification for the employee’s personal illness must identify the nature of the
illness, the date the illness began and the projected return-to-work date. For leave to care
for a child, spouse, or parent, the medical certification must include an estimate of the
amount of time the employee is needed to provide care. At the employer’s discretion and
expense, a second medical opinion may be required. Any dispute between the two opinions
shall be resolved by the opinion of a third, jointly selected provider and paid for by the
division. Any re-certification requested by the employer shall be at the employee’s expense.
Designation of Leave as Family and Medical Leave
The assistant superintendent or designee shall decide whether the employee qualifies for
family and medical leave. Leave shall be designated as qualifying for family and medical
leave and the employee provided a response as soon as reasonably possible. The
response shall be on forms provided by the Personnel Office and shall inform the employee
that paid leave shall be used concurrently with family and medical leave.
Benefits During Family and Medical Leave
Benefits for the purpose of this section include health insurance, life insurance, FSA’s, and
Employees already entitled to these benefits may continue them during a family or medical
leave, as described below. Employees not already entitled to these benefits, such as
temporary employees, shall not be entitled to them during family or medical leave.
1. Health Insurance
Employees may continue their health insurance coverage for the duration of the
family or medical leave. During a paid leave, there is no change in the procedure
used by employees to pay for health insurance coverage. If in an unpaid status
during this period of time, the employee must submit, directly to the Benefits Office,
a check for the amount of the employee’s portion of the health insurance premium
(for dependents or self, if any) in order to receive coverage. Employees who fail to
submit payment within 30 days after a premium is due may lose health insurance
FAMILY AND MEDICAL LEAVE (cont.)
2. Life Insurance
Employees may also continue coverage under the life insurance program sponsored
by the school system. The employee shall be responsible for the entire premium
amount (both employer and employee portions) in order to continue this coverage
while in an unpaid status.
3. Flexible Spending Accounts
Taking unpaid leave may be considered a “change in family status.” Therefore, an
employee enrolled in either the health care reimbursement or dependent care
accounts may request a change in his or her deduction amounts in accordance with
the rules governing this program. An employee may continue, while in an unpaid
status, to make contributions to the flexible spending accounts with after-tax dollars
by submitting personal checks directly to the Benefits Office. Employees who do not
continue in the flexible spending accounts program while in an unpaid status under
the Family and Medical Leave Act shall be ineligible to file for reimbursement for any
expenses incurred during the leave period.
4. Virginia Retirement System
Employees participating in the Virginia Retirement System (VRS) shall not earn
retirement service credit for any periods of unpaid leave in which the leave period
represents the entire monthly pay period.
Employees may be eligible to purchase service credit in the VRS for the period of
family or medical leave if they satisfy the purchase of service credit requirements of
5. Additional Information on Benefits
1. Benefit coverage shall be canceled for any employee who fails to make the
appropriate premium payments within a 30-day grace period for those benefits
that he or she is eligible to continue while on unpaid leave. Upon return from
family or medical leave, all of the employee’s benefits shall be reinstated.
2. Employees who are granted paid intermittent family or medical leave shall have
all benefit coverage continued if their paychecks for the pay periods involved are
sufficient to withhold the appropriate employee deductions. Otherwise, the
employee must remit payment for the appropriate premium amounts in order to
3. Employees who fail to return to work with Augusta County Public Schools
following the expiration of the unpaid leave period shall have all benefits
terminated. These employees shall be obligated to reimburse the school system
for the cost of health premiums paid on their behalf while in an unpaid status
unless they qualify for an exemption under the Family and Medical Leave Act.
FAMILY AND MEDICAL LEAVE (cont.)
Such employees, however, shall be eligible to continue health insurance coverage
under COBRA from the point at which they notify the school system that they will
not be returning to employment. When an employee whose coverage has
already terminated during family or medical leave due to the employee’s failure to
make the required premium payments fails to return to work, the employee shall
have no entitlement to continued health insurance coverage under COBRA.
4. Employees do not accrue sick leave or annual leave benefits during unpaid FMLA
Return to Work
An employee on family and medical leave shall provide the division at least two
workdays notice of the intent to return to work. The employee shall be returned to
the same or equivalent position at the end of the family and medical leave unless the
division shows that the employee would not otherwise have been employed at the
time reinstatement is requested.
An employee who does not plan to return to work shall notify the Personnel
Department as soon as the decision is made but no later than at the expiration of the
leave. Failure to return to work with Augusta County Public Schools without giving
notice at the expiration of the leave without good cause may result in an
unsatisfactory service separation.
In order to minimize disruption to instruction, an instructional employee may be
restricted in his/her ability to return from family and medical leave within three weeks
of the end of an academic term. The assistant superintendent must approve all
such end-of-semester instances. If an instructional employee is required to continue
leave until the end of an academic term, only the period of leave until the employee
is ready and able to return to work shall be counted against the twelve week family
and medical leave entitlement.
The following return to work provisions apply to instructional employees:
1. If an instructional employee begins approved unpaid medical and family leave
more than 5 weeks before the end of the school year, the employee may be
required to continue taking leave until the end of the school year if the leave is at
least 3 weeks in duration and the return to work would occur during the last 3
weeks of the school year.
2. If an instructional employee begins approved unpaid medical and family leave with
less than 5 weeks before the end of the school year, for any reason other than
the employee's own serious health condition, the employee may be required to
take leave until the end of the school year if the leave is longer than 2 weeks in
duration and the return to work would occur during the last 2 weeks of the school
FAMILY AND MEDICAL LEAVE (cont.)
3. If an instructional employee begins approved unpaid medical and family leave with
less than 3 weeks before the end of the school year, for any reason other than
the employee's own serious health condition, the employee may be required to
continue taking leave until the end of the school year if the leave is longer than 5
working days in duration.
Any variation between this policy and the Family and Medical Leave Act will be
determined in favor of the Act.
Policy adopted: July 1, 2002 Augusta County School Board
AUGUSTA COUNTY SCHOOL BOARD
THIS NOTICE DESCRIBES HOW MEDICAL INFORMATION ABOUT YOU MAY BE USED AND
DISCLOSED AND HOW YOU CAN GET ACCESS TO THIS INFORMATION. PLEASE REVIEW IT
This Notice is provided to you on behalf of: SAW Augusta County School Board Healthcare Plan
Augusta County School Board Cafeteria Plan
These plans comprise what is called an “Affiliated Covered Entity,” and are treated as a single plan for purposes of this
Notice and the privacy rules that require it. For purposes of this Notice, we’ll refer to these plans as a single “Plan.”
The Plan’s Duty to Safeguard Your Protected Health Information.
Individually identifiable information about your past, present, or future health or condition, the provision of health care to
you, or payment for the health care is considered “Protected Health Information” (“PHI”). The Plan is required to extend
certain protections to your PHI, and to give you this Notice about its privacy practices that explains how, when and why
the Plan may use or disclose your PHI. Except in specified circumstances, the Plan may use or disclose only the
minimum necessary PHI to accomplish the purpose of the use or disclosure.
The Plan is required to follow the privacy practices described in this Notice, though it reserves the right to change those
practices and the terms of this Notice at any time. If it does so, and the change is material, you will receive a revised
version of this Notice either by hand delivery, mail delivery to your last known address, or some other fashion. This
Notice, and any material revisions of it, will also be provided to you in writing upon your request (ask your Human
Resources representative, or contact the Plan’s Privacy Official, described below), and will be posted on any website
maintained by Augusta County School Board that describes benefits available to employees and dependents.
You may also receive one or more other privacy notices, from insurance companies that provide benefits under the
Plan. Those notices will describe how the insurance companies use and disclose PHI, and your rights with respect to
the PHI they maintain.
How the Plan May Use and Disclose Your Protected Health Information.
The Plan uses and discloses PHI for a variety of reasons. For its routine uses and disclosures it does not require your
authorization, but for other uses and disclosures, your authorization (or the authorization of your personal
representative (e.g., a person who is your custodian, guardian, or has your power-of-attorney) may be required. The
following offers more description and examples of the Plan’s uses and disclosures of your PHI.
Uses and Disclosures Relating to Treatment, Payment, or Health Care Operations.
Treatment: Generally, and as you would expect, the Plan is permitted to disclose your PHI for purposes of
your medical treatment. Thus, it may disclose your PHI to doctors, nurses, hospitals, emergency medical
technicians, pharmacists and other health care professionals where the disclosure is for your medical
treatment. For example, if you are injured in an accident, and it’s important for your treatment team to know
your blood type, the Plan could disclose that PHI to the team in order to allow it to more effectively provide
treatment to you.
Payment: Of course, the Plan’s most important function, as far as you are concerned, is that it pays for all or
some of the medical care you receive (provided the care is covered by the Plan). In the course of its payment
operations, the Plan receives a substantial amount of PHI about you. For example, doctors, hospitals and
pharmacies that provide you care send the Plan detailed information about the care they provided, so that they
can be paid for their services. The Plan may also share your PHI with other plans, in certain cases. For
example, if you are covered by more than one health care plan (e.g., covered by this Plan, and your spouse’s
plan, or covered by the plans covering your father and mother), we may share your PHI with the other plans to
coordinate payment of your claims.
Health care operations: The Plan may use and disclose your PHI in the course of its “health care
operations.” For example, it may use your PHI in evaluating the quality of services you received, or disclose
your PHI to an accountant or attorney for audit purposes. In some cases, the Plan may disclose your PHI to
insurance companies for purposes of obtaining various insurance coverage.
Other Uses and Disclosures of Your PHI Not Requiring Authorization. The law provides that the Plan may use
and disclose your PHI without authorization in the following circumstances:
To the Plan Sponsor: The Plan may disclose PHI to the employers (such as Augusta County School Board)
who sponsor or maintain the Plan for the benefit of employees and dependents. However, the PHI may only
be used for limited purposes, and may not be used for purposes of employment-related actions or decisions or
in connection with any other benefit or employee benefit plan of the employers. PHI may be disclosed to: the
human resources or employee benefits department for purposes of enrollments and disenrollments, census,
claim resolutions, and other matters related to Plan administration; payroll department for purposes of
ensuring appropriate payroll deductions and other payments by covered persons for their coverage;
information technology department, as needed for preparation of data compilations and reports related to Plan
administration; finance department for purposes of reconciling appropriate payments of premium to and
benefits from the Plan, and other matters related to Plan administration; internal legal counsel to assist with
resolution of claim, coverage and other disputes related to the Plan’s provision of benefits.
Required by law: The Plan may disclose PHI when a law requires that it report information about suspected
abuse, neglect or domestic violence, or relating to suspected criminal activity, or in response to a court order.
It must also disclose PHI to authorities that monitor compliance with these privacy requirements.
For public health activities: The Plan may disclose PHI when required to collect information about disease
or injury, or to report vital statistics to the public health authority.
For health oversight activities: The Plan may disclose PHI to agencies or departments responsible for
monitoring the health care system for such purposes as reporting or investigation of unusual incidents.
Relating to decedents: The Plan may disclose PHI relating to an individual's death to coroners, medical
examiners or funeral directors, and to organ procurement organizations relating to organ, eye, or tissue
donations or transplants.
For research purposes: In certain circumstances, and under strict supervision of a privacy board, the Plan
may disclose PHI to assist medical and psychiatric research.
To avert threat to health or safety: In order to avoid a serious threat to health or safety, the Plan may
disclose PHI as necessary to law enforcement or other persons who can reasonably prevent or lessen the
threat of harm.
For specific government functions: The Plan may disclose PHI of military personnel and veterans in certain
situations, to correctional facilities in certain situations, to government programs relating to eligibility and
enrollment, and for national security reasons.
Uses and Disclosures Requiring Authorization: For uses and disclosures beyond treatment, payment and
operations purposes, and for reasons not included in one of the exceptions described above, the Plan is required
to have your written authorization. Your authorizations can be revoked at any time to stop future uses and
disclosures, except to the extent that the Plan has already undertaken an action in reliance upon your
Uses and Disclosures Requiring You to have an Opportunity to Object: The Plan may share PHI with your
family, friend or other person involved in your care, or payment for your care. We may also share PHI with these
people to notify them about your location, general condition, or death. However, the Plan may disclose your PHI
only if it informs you about the disclosure in advance and you do not object (but if there is an emergency situation
and you cannot be given your opportunity to object, disclosure may be made if it is consistent with any prior
expressed wishes and disclosure is determined to be in your best interests; you must be informed and given an
opportunity to object to further disclosure as soon as you are able to do so).
Your Rights Regarding Your Protected Health Information.
You have the following rights relating to your protected health information:
To request restrictions on uses and disclosures: You have the right to ask that the Plan limit how it uses or
discloses your PHI. The Plan will consider your request, but is not legally bound to agree to the restriction. To the
extent that it agrees to any restrictions on its use or disclosure of your PHI, it will put the agreement in writing and
abide by it except in emergency situations. The Plan cannot agree to limit uses or disclosures that are required by
To choose how the Plan contacts you: You have the right to ask that the Plan send you information at an
alternative address or by an alternative means. The Plan must agree to your request as long as it is reasonably
easy for it to accommodate the request.
To inspect and copy your PHI: Unless your access is restricted for clear and documented treatment reasons,
you have a right to see your PHI in the possession of the Plan or its vendors if you put your request in writing. The
Plan, or someone on behalf of the Plan, will respond to your request, normally within 30 days. If your request is
denied, you will receive written reasons for the denial and an explanation of any right to have the denial reviewed.
If you want copies of your PHI, a charge for copying may be imposed but may be waived, depending on your
circumstances. You have a right to choose what portions of your information you want copied and to receive, upon
request, prior information on the cost of copying.
To request amendment of your PHI: If you believe that there is a mistake or missing information in a record of
your PHI held by the Plan or one of its vendors, you may request, in writing, that the record be corrected or
supplemented. The Plan or someone on its behalf will respond, normally within 60 days of receiving your request.
The Plan may deny the request if it is determined that the PHI is: (i) correct and complete; (ii) not created by the
Plan or its vendor and/or not part of the Plan’s or vendor’s records; or (iii) not permitted to be disclosed. Any denial
will state the reasons for denial and explain your rights to have the request and denial, along with any statement in
response that you provide, appended to your PHI. If the request for amendment is approved, the Plan or vendor,
as the case may be, will change the PHI and so inform you, and tell others that need to know about the change in
To find out what disclosures have been made: You have a right to get a list of when, to whom, for what
purpose, and what portion of your PHI has been released by the Plan and its vendors, other than instances of
disclosure for which you gave authorization, or instances where the disclosure was made to you or your family. In
addition, the disclosure list will not include disclosures for treatment, payment, or health care operations. The list
also will not include any disclosures made for national security purposes, to law enforcement officials or
correctional facilities, or before the date the federal privacy rules applied to the Plan. You will normally receive a
response to your written request for such a list within 60 days after you make the request in writing. Your request
can relate to disclosures going as far back as six years. There will be no charge for up to one such list each year.
There may be a charge for more frequent requests.
How to Complain about the Plan’s Privacy Practices.
If you think the Plan or one of its vendors may have violated your privacy rights, or if you disagree with a decision made
by the Plan or a vendor about access to your PHI, you may file a complaint with the person listed in the section
immediately below. You also may file a written complaint with the Secretary of the U.S. Department of Health and
Human Services. The law does not permit anyone to take retaliatory action against you if you make such complaints.
Contact Person for Information, or to Submit a Complaint.
If you have questions about this Notice please contact the Plan’s Privacy Official or Deputy Privacy Official(s) (see
below). If you have any complaints about the Plan’s privacy practices or handling of your PHI, please contact the
Privacy Official or an authorized Deputy Privacy Official.
The Plan’s Privacy Official, the person responsible for ensuring compliance with this Notice, is:
Dr. Gary McQuain
Telephone Number: (540) 245-5110
The Plan’s Deputy Privacy Official(s) is/are:
Debby Berrington, Benefits And Purchasing Manager (540) 245-5126
Organized Health Care Arrangement Designation.
The Plan participates in what the federal privacy rules call an “Organized Health Care Arrangement.” The purpose of
that participation is that it allows PHI to be shared between the members of the Arrangement, without authorization by
the persons whose PHI is shared, for health care operations. Primarily, the designation is useful to the Plan because it
allows the insurers who participate in the Arrangement to share PHI with the Plan for purposes such as shopping for
other insurance bids.
The members of the Organized Health Care Arrangement are:
SAW Augusta County School Board Healthcare Plan
Augusta County School Board Cafeteria Plan
Southern Health Corporation
The effective date of this Notice is: January 1, 2004.
PAYROLL /BENEFITS DETAIL
Several of the benefits offered to Augusta County School Board employees are difficult to
understand at first glance but carry tremendous opportunities for the employee and his or her
family. On the following pages, detailed information is provided for:
Cafeteria Plan (Flexible Benefits Plan)
Southern Health Insurance
Group Health Plan COBRA Notification
VRS Optional Life Insurance
Tax Sheltered Annuities (TSA)
(FLEXIBLE BENEFITS PLAN)
AUGUSTA COUNTY FLEXIBLE BENEFITS PLAN
As an employee of Augusta County, you have the opportunity to participate in an exciting program called a
FLEXIBLE BENEFIT PLAN. This program allows you to pick the benefits that are best for you and pay for those
with PRE-TAX DOLLARS. Using pre-tax dollars lowers your taxable income resulting in fewer taxes taken out of
your paycheck. Under a Flexible Benefits program, you actually have more spendable income.
FLEX PLAN PART A - ELIGIBLE HEALTH CARE ELIGIBLE DEPENDENT CARE
PREMIUM CONVERSION EXPENSES EXPENSES
Hospitalization insurance Many kinds of medical, dental, Your dependent care FSA can
premiums that you pay through and vision care expenses not be used for expenses for
payroll deduction are eligible for covered by your family's health dependent care, which allows
pre-tax savings. You can insurance can be reimbursed you to work. If you are married,
deduct, before income taxes and from your health care FSA (or your spouse must be:
Social Security are calculated, medical reimbursement
the premiums paid for account). Some of the common *employed also;
dependent’s insurance. reimbursable expenses include: *a full-time student for at least 5
months during the year; or
FLEX PLAN PART B - *expenses that are applied to *disabled and unable to provide
FLEXIBLE SPENDING your deductible. his or her own care.
A flexible spending account *the part you must pay after your The care must be for your:
(FSA) is an IRS-approved insurance pays (your "co-
method for saving tax dollars. It payment" and any part that *dependent children under age
works by letting you pay for exceeds the "reasonable and 13;
certain types of expenses with customary" charges). *disabled children;
money that's taken out of your *disabled spouse; or
pay before your income taxes *any out-of-pocket dental *disabled dependent parent(s).
and Social Security are expenses.
calculated. When you use an Dependent care may be
FSA, you pay your eligible *expenses for eyeglasses, provided by:
dependent care, health care, contact lenses, and hearing
and private premium expenses aids. *an approved daycare center for
with tax-free earnings. the elderly
*transportation for needed *a nursery school, kindergarten,
Here's how FSA's work: medical or dental treatment. or child daycare center
*an individual who is not one of
* First, you estimate how much your dependents.
money you'll spend for eligible You can be reimbursed from
health care, and dependent care your medical reimbursement
expenses during the calendar account for these and other
year. eligible health care expenses
* Once you've calculated this
amount, FSA's allow you to set *they are incurred during the
aside a portion of it from your plan year.
salary each payday. *they are not eligible for
reimbursement from any other
* The amount you allocate to source, and
FSA's is taken out of your pay *you file a statement from the
before your taxes are calculated provider of the services or
and withheld. supplies which shows the
amount of each expense and the
* When you pay eligible date it was incurred.
expenses during the year, you
get reimbursed for them with the
tax-free money you've set aside
in your FSA's.
QUESTIONS AND ANSWERS
Q. When can I enroll?
A. The enrollment period sign-ups begin in late October or early November for the upcoming calendar year.
Remember you are electing benefits for a full calendar year. New employees may enroll when hired, at least 10 days
prior to their first pay period.
Q. How do I participate?
A. You become a participant by signing an "Enrollment Form" or Benefit Election Form. Here you elect one or more
of the benefits available under the Plan, as well as agree to salary conversion to pay for those benefits elected.
To estimate expenses for medical reimbursement accounts, review your family's medical bills from the past year.
Exclude expenses that are not likely to be repeated. The balance should give a rough estimate of out-of-pocket
To estimate dependent care expenses, add up the weekly cost of care, and subtract for holidays and vacations.
You may claim up to $5,000 for one or more dependents if you file a joint tax return, or up to $2,500 if you file a
Q. What’s the catch?
A. You must figure the amount you need for the year and commit to that amount. At the end of the year, you forfeit
any unspent funds in your account.
Q. Can I change my election during the plan year?
A. Generally you cannot change your election; however if there is one or more of the following significant changes in
your family status, a change in election may occur: marriage or divorce; birth or adoption of a child; death of a
spouse or child; a significant change in medical benefits through your employment or to your spouse; change in
employment status of yourself or your spouse.
FLEXIBLE BENEFIT PLAN PAYCHECK COMPARISON
EXAMPLE ON HOW THE PLAN WORKS
Employee: John Doe
Withholding Status: Married, 3 exemptions
Combined Federal, State, & FICA Tax Bracket - 25.65%
CURRENT PAY AFTER FLEX PLAN
Gross wages $ 1,000.00 $ 1,000.00
Less Pre-tax Expenses:
Group Medical Insurance N/A 130.59
Uninsured Medical & Dental N/A 50.00
Child Care N/A 50.00
Net Taxable Pay $ 1,000.00 $ 769.41
Federal, State, & FICA 256.50 197.35
Present Insurance Deductions 130.59 N/A
Take Home Pay $ 612.91 $ 572.06
Current After-Tax Expenses:
Uninsured Medical & Dental 50.00 N/A
Child Care 50.00 N/A
Net Spendable Income $ 512.91 $ 572.06
ANNUAL TAX SAVINGS - $59.15 X 12 Paychecks = $709.80
Note: Be conservative in your estimates of your expenses. You MUST use the amount you set aside in each
account by the end of the plan year or you lose the funds.
HEALTH INSURANCE COVERAGE
Augusta County School Board currently maintains health insurance coverage with Southern
Health. Coventry Health Care, a national company with a local focus, owns Southern Health. The
school board is offering a Point of Service benefit plan for employees with individual coverage, and a
Preferred Provider plan to give those employees covering dependents another coverage choice.
Under in-network benefits, all covered services are performed or arranged by a Southern
Health primary care physician (PCP) who manages the patient’s medical care. Since this proves to
be the most cost-effective approach, it carries the least out-of-pocket expense. As a member of
Southern Health, you have direct access to participating network specialists without a referral.
Out-of-network benefits enable enrollees to seek care from a physician outside the Southern
Health network. Out-of-pocket expense is highest here because Southern Health does not contract
with non-participating doctors.
A summary of benefits will follow on the next page to explain in detail each option on the POS
plan and its coverage. Before reviewing the options, several “buzz words” need explanation:
Deductible – Amount you pay before any benefits are paid by Southern Health
Co-Payment – Flat amount you pay each time you seek covered services
Coinsurance – Percentage paid for covered services
Allowable Charge ( A/C) – Highest amount recognized by Southern Health for covered services
REQUIRED NOTICE TO SOUTHERN HEALTH PARTICIPANTS
The 1998 federal budget passed by Congress requires all health plans to cover reconstructive surgery
following a mastectomy. Your Southern Health plan currently covers reconstructive surgery. However, the
law mandates that we provide you with this notice.
Coverage for Reconstructive Surgery Following Mastectomy
When a covered individual receives benefits for a mastectomy and decides to have breast reconstruction,
based on consultation between the attending physician and the patient, the health plan must cover:
Reconstruction of the breast on which the mastectomy was performed;
Surgery and reconstruction of the other breast to produce symmetrical appearance; and
Prostheses and physical complications in all stages of mastectomy, including lymphedema.
This coverage must be the same as for any other benefit under the plan.
If you have any questions about your health care plan, please call the number on your Southern Health ID
card to speak with a Member Services or Customer Service representative.
AUGUSTA COUNTY SCHOOL BOARD
VIRGINIAVALUE POS SUMMARY OF BENEFITS
Access care through your Southern Direct access to physicians not in
Health PCP the Southern Health Network
Per Individual/Family None $250/$500
Coinsurance: 80%/20% 70%/30% of Allowable Charge (A/C)
Maximum Out-of-Pocket for
Coinsurance (after deductible):
Per Individual/Family $2000/$4000 $2000/$4000
Primary Care Physician Office Visit $20 co-pay 70% of A/C after deductible
Specialist Physician Office Visit $35 co-pay 70% of A/C after deductible
OB/GYN Office Visit $35 co-pay 70% of A/C after deductible
Prenatal Care Office Visit (after initial visit) No charge 70% of A/C after deductible
Allergy Injection (when no office visit) $5 co-pay 70% of A/C after deductible
Lab Tests and X-Ray Services:
(routine and noncomplex) No charge 70% of A/C after deductible
Mammograms (low dose screenings) No charge 70% of A/C after deductible
Emergency Care (facility and provider
$150 co-pay (waived if admitted)
Hospital Emergency Room Visit
Ambulance Transportation (when medically
Urgent Care Visit (facility and provider) $75 co-pay $75 co-pay
Spinal Manipulation (10 outpatient visits) $35 co-pay/visit 70% of A/C after deductible
Outpatient Services Facility/Services 80% A/C 70% of A/C after deductible
(facility and provider charges)
Hospital Inpatient (facility and provider 80% A/C 70% of A/C after deductible
Durable Medical Equipment:
(Rental/Purchase) Max $2500/year No charge 70% of A/C after deductible
Skilled Nursing/Rehabilitation Facility: 80% up to 100 days per year inpatient 70% of A/C after deductible
Mental Health & Substance Abuse:
Inpatient (30 day/year max) 80% A/C 70% of A/C after deductible
Outpatient (30 visits/year max) $35 co-pay/visit or 50% A/C (visits 1-5) 50% of A/C after deductible
Prescription Drugs: Participating Pharmacy Non-participating Pharmacy
Retail Generic 100% after $5 per 31 day supply Not covered
Retail Preferred Brand 100% after $25 per 31 day supply Not covered
Retail Non-Preferred Brand 100% after $45 per 31 day supply Not covered
Mail Order Benefit – up to 90 Day Supply $5/$50/$112.50 Not covered
Lifetime Maximum Benefit (Per member)
Transplant Services Unlimited $10,000
Other Medical Covered Services Unlimited Unlimited
Vision (one eye exam in a 12 mth period)
Spectacle eye exam $15 co-pay 70% A/C
Eye exam for non-specialty contact lenses $35 co-pay 70% A/C
Eye exam for specialty contact lenses Benefit payable $40 70% A/C
Conditions and Limitations: Charges must be for care that is medically necessary for the treatment of disease or injury. Benefits
will be coordinated in the event of other coverage to avoid duplication of payment. Copays, Deductibles, & charges above Allowable
Charge do not count toward Maximum Out-of-Pocket amounts. All inpatient hospital admissions require Pre-Admission Certification
and Continued Stay Review.
Complete benefit descriptions and exclusions are contained in the Southern Health Enrollee Certificate of Coverage, which will
A Summary of Benefits on the PPO plan is available in the member enrollment information received by new employees.
GROUP HEALTH PLAN
COBRA Notice of Rights
Initial Notification - VERY IMPORTANT
To provide options for individuals who lose health coverage from an employer-sponsored
insurance plan, the Federal Government enacted the Consolidated Omnibus Budget
Reconciliation Act of 1985 (Public Law 99-272, Title X), commonly known as “COBRA.” The
following will explain your rights under the law and what should be done if you (or a covered
dependent) experience a COBRA “qualifying event.” A qualifying event is an event that occurs
whereby an employee or covered dependent would no longer be eligible to continue under a
group health plan. We request that you and your covered dependents take the time to read this
COBRA LAW – With a few exceptions, employers with twenty or more employees that provide
health benefits are required to offer employees (and/or their covered dependents) the right to a
temporary extension of group insurance (called “continuation coverage”) upon experiencing a
qualifying event. An individual experiencing a qualifying event is referred to as a “qualified
beneficiary” and receives many of the rights granted to similarly situated active employees as it
relates to group insurance plans.
Continuation coverage is different from converting to individual coverage after termination of
employment. The major advantages of COBRA are that participants will receive the same group
plan benefits as a similarly situated active employees and will be charged the company’s group
rate (plus a maximum of two percent as an administrative fee). These COBRA rates may (or may
not) be less than the premiums charged under a conversion policy so it is recommended that you
contact the insurer directly to receive a quote. With many conversion policies, benefits are
reduced and premiums are based upon the age and sex of the converting members. Another
difference is that COBRA allows for covered dependents to independently continue their health
coverage and retain COBRA rights throughout their continuation time frame.
EMPLOYER AND QUALIFIED BENEFICIARY’S RESPONSIBILITIES – When you or your
covered dependent experience a qualifying event, you will be sent a notification explaining your
rights to elect COBRA continuation coverage. The Plan Administrator shall provide this
notification within fourteen days from the date of the qualifying event (or as soon as
administratively possible). You or your dependent have the responsibility to notify our office of
your desire to continue coverage within sixty days from the later of the date of notification or loss
of coverage. Upon acceptance, you or your dependent will be notified of any enrollment forms
that must be completed. Keep in mind; qualified beneficiaries who elect continuation coverage
are responsible for premiums back to the date termination from the plan would have occurred.
If you or a covered dependent experience a qualifying event and do not receive a qualifying event
notification in a timely fashion, you are requested to contact the Plan Administrator immediately.
Even if you elect not to continue coverage, it is vital you have the information necessary to make
an informed decision.
Augusta County School Board will know when certain qualifying events (i.e. reduced work hours,
employment termination and death of an employee) occur. You and your covered dependents will
be responsible for notifying our office of a divorce, legal separation, Medicare entitlement or when
a dependent loses his/her “dependent status.” You or your dependents have sixty days to notify
our office of these qualifying events. If we are not notified within this time frame, COBRA
continuation cannot be offered. In order to take advantage of the disability extension described
below, you must also notify us within sixty days of a determination by Social Security that you or a
dependent are “disabled.”
COBRA QUALIFYING EVENTS – Listed below are qualifying events for which you and/or your
covered dependents are able to continue coverage under COBRA. As shown, the maximum
continuation coverage time frame depends upon the qualifying event experienced. To be
considered a qualified beneficiary, you or your dependent must have been enrolled on the group
plan on the day prior to the qualifying event. One exception to this rule is when a child is born to
(or placed for adoption with) an employee during the COBRA continuation period. These children
will receive all the rights of a qualified beneficiary throughout the COBRA continuation period.
Qualifying Events That Yield a Maximum of Eighteen Months’ Coverage (Experienced by
1) Termination of employment (for reason other than “gross misconduct”);
2) Reduction of employee’s work hours.
Qualifying Events That Yield a Maximum of Thirty-six Months’ Coverage (Experienced by a
1) Death of the employee;
2) Divorce or legal separation;
3) Employee is entitled to Medicare but dependents are not;
4) Dependent child who no longer meets the plan’s definition of a “dependent.”
DISABILITY EXTENSION – If the qualifying event is an employee’s termination or reduction in
work hours and you or a covered dependent are determined to be “disabled” by Social Security
(under Title II or Title XVI) either before that qualifying event or within sixty days of such event,
you or your covered dependents are eligible for an additional eleven months coverage (yielding a
total of twenty-nine months). For this extension to apply, evidence of disability under the Social
Security Act must be provided to the Plan Administrator within the initial eighteen-month
continuation coverage time frame and within sixty days from the date of Social Security’s
FAMILY AND MEDICAL LEAVE ACT – Under the Family and Medical Leave Act of 1993
(FMLA), eligible employees have the right to take up to twelve weeks of unpaid leave to care for
himself or herself or a relative. If you elect to take this leave and later notify the company that you
will not be returning, you have the ability to continue your coverage for eighteen months from the
date benefits are terminated on account of your failure to return to work. (FMLA does not apply to
all organizations and can differ between states. Please contact a company representative for
further information on FMLA.)
MULTIPLE QUALIFYING EVENTS – If you experience a qualifying event that entitles you and
your covered dependents to less than thirty-six months of continuation coverage (including the
disability extension described above) and during your period of continuation coverage your
covered dependents experience a second (or “multiple”) qualifying event, the period of
continuation coverage for your covered dependents may be extended under COBRA from
eighteen months (or twenty-nine months if disabled) to thirty-six months. The maximum
continuation period is thirty-six months regardless of how many qualifying events your covered
dependents experience. It is the responsibility of you or your covered dependents to notify our
office within sixty days of the multiple qualifying events. Employees who experience a reduction in
work hours followed by termination of employment shall only be eligible for eighteen months of
continuation coverage under COBRA.
COBRA TERMINATION – Although COBRA continuation coverage has a maximum time frame;
you may voluntarily terminate coverage at anytime by notifying our office in advance. In addition,
COBRA states that continuation coverage will end for one or more of the following reasons:
1) The company terminates all of its health plans for similarly situated active
2) COBRA premiums are not paid in a timely manner;
3) You and/or your covered dependents become covered under another group plan
after electing continuation coverage and that plan does not exclude a pre-existing medical
condition affecting you or your dependents;
4) You become entitled to Medicare (meaning enrolled in Parts A and/or B) after you
have elected continuation coverage under COBRA. However, your dependent’s
continuation coverage may be extended to thirty-six months upon notifying our office of
your Medicare entitlement;
5) You or a covered dependent are enrolled in a plan that requires you to live in the
plan’s “service area” or visit contracted providers and you move out of the service area.
However, if another plan is available to similarly situated active employees who move
from the service area, coverage under that plan will be offered to you;
6) You file fraudulent claims or engage in other activities for which a similarly
situated active employee would be terminated “for cause,” or
7) A “disabled” participant is determined by Social Security to be no longer disabled
during the eleven-month extension. In that case, the entire family unit will be terminated
PREMIUM COSTS – The cost of continuation coverage will be determined at the time of the
qualifying event. Your cost will be the amount the insurance company charges the School Board
(or if the plan is self-insured, the cost of coverage as determined by the company) for similarly
situated active employees under the plan plus a 0% administration fee. An employee who is
deemed to be disabled and who elects the disability extension may be charged a 50%
administration fee during the eleven-month extension. (If the disabled employee does not elect
the disability extension or terminates coverage before the extension would ordinarily end, his/her
covered dependent’s administration fee will be reduced to 0%.) If the firm’s premium increases or
decreases, the COBRA participant’s premiums will be adjusted accordingly. Premium rates for
the plan are set for twelve-month periods based upon the Plan Year.
If you elect to continue coverage under COBRA, you will be granted an initial forty-five day grace
period to make your payment. Your first payment must include the premiums for coverage
retroactively to the date you or your covered dependents would have lost coverage if you hadn’t
elected to continue coverage. Subsequent premium payments will have a thirty-one day grace
period. If premiums are not received within the allotted grace period, COBRA coverage will be
terminated back to the date for which premiums were applied. The company asks for full
payment by the first of the month but will accept multiple payments (equaling the total monthly
premium due) throughout the month of coverage.
COVERAGE UNDER COBRA – Since COBRA is a continuation of benefits; your benefits will
remain the same as prior to the qualifying event. If the company elects to change plans and/or
benefits, you will be eligible to enroll in the changed plan and will therefore receive the same
benefits as a similarly situated active employee. If your plan has deductibles and coinsurance
maximums, these amounts will be based upon expenses incurred prior to the qualifying event by
only those family members electing to continue under the plan.
COBRA participants who move from the plan’s service area may lose coverage under the group
health plan (as would a similarly situated active employee). If the company offers a plan that
would provide coverage in the new area, the COBRA participant will be offered the right to enroll
in that plan.
OPEN ENROLLMENT – COBRA participants are offered the same rights as similarly situated
active employees during open enrollment. They may change plans and add/delete eligible
dependents. Although part of the family unit, dependents (other than newborn children and
adopted children of the employee) added during open enrollment will not have the same COBRA
rights as the initial qualified beneficiaries. The company’s open enrollment may vary from year to
year so feel free to contact the Plan Administrator for further information on open enrollment.
CONVERSION POLICIES – A conversion policy allows individuals covered under a group plan to
convert their coverage to an individual policy without a lapse in coverage or a pre-existing
condition limitation upon termination from the group plan. Not all group plans offer a conversion
right. If you are enrolled in a plan that allows conversion, you will receive notification explaining
conversion privileges in the last 180 days of your COBRA term.
HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996 (HIPAA) – The
scope of HIPAA is to eliminate barriers for individuals (mainly people with pre-existing medical
conditions that would have difficulty obtaining immediate coverage) who lose coverage and want
to find some form of replacement plan. The law limits a plan’s “pre-existing condition limitation
time frame” to twelve months for newly enrolling individuals and provides credit for prior medical
coverage, including COBRA continuation coverage. When you terminate from a group medical
plan, you will receive a Certificate of Coverage that illustrates your prior coverage. This certificate
should be shown to a new employer to receive one-month credit for every month of prior
coverage. Keep in mind that if there is a break in coverage greater than sixty-three days, the new
employer does not have to provide any prior coverage credit.
In addition, if you elect COBRA and keep your coverage for the maximum continuation period
available to you, you may be eligible for coverage under an individual plan (through an insurer of
your choice) on a guaranteed issue basis without any pre-existing condition limitations.
TRADE ACT OF 2002 – On August 6, 2002, the Trade Act of 2002 was signed into law expanding
the benefits available to workers displaced by import competition or shifts of production to other
countries. The Trade Act of 1974 initially offered benefits (known as “trade adjustment
assistance”) which expired September 30, 2001. The Trade Act of 2002 extended this period to
September 30, 2007 and offers qualified workers a tax credit of up to 65% 0f COBRA health
insurance premiums for both them and their family.
To be eligible for the tax credit, you must be currently receiving trade adjustment assistance or
considered an “eligible PBGC pension recipient,” paying premiums for qualified health insurance,
not receiving other coverage and not in prison. The law also creates a second “election period”
for individuals not electing COBRA coverage upon their loss of employment if they are within the
six months immediately after their group health plan coverage ended. For further information on
the Trade Act of 2002, please visit the website at www.cobralaw.com/trade-act.
QUESTIONS REGARDING COBRA – COBRA is complex, placing certain requirements on both
the employer and qualified beneficiary. It is designed to provide temporary health insurance with a
defined termination date. If you have any questions regarding this notification of your COBRA
rights, please feel free to contact the Augusta County School Board Finance Department during
VRS OPTIONAL LIFE
VRS OPTIONAL LIFE BENEFITS
All active employees currently covered under the VRS Basic Group Life Plan are
eligible for this optional insurance plan. Employees may purchase the optional
insurance plan for their spouse and children.
Employee is eligible for up to $600,000 in optional life insurance (Guaranteed
issue up to $300,000).
Amounts of Coverage
Employees have four options from which to choose (1, 2, 3, or 4 times their
annual salary rounded up to the nearest $1,000). Spouse coverage, if purchased,
provides half of your optional insurance amount up to a maximum of $300,000. If you
choose to cover your spouse under Option 1, the coverage is guaranteed. Coverage
over that amount will be subject to underwriting approval. Depending on what option
you choose, children ages 15 days up to 21 (25 if full-time student) can be insured for
$10,000, $20,000, or $30,000. One premium covers all children in your family; no per-
child charge applies.
Employee Spouse Children
Insurance Insurance 15 days -
Option Amount Amount Max age
1 1 X Salary 0.5 X Emp Salary $10,000
2 2 X Salary 1 X Emp Salary $10,000
3 3 X Salary 1.5 X Emp Salary $20,000
4 4 X Salary 2 X Emp Salary $30,000
Minnesota Life Insurance Company provides life insurance for VRS. The
premium for both you and your spouse is based upon your and your spouses’ age,
option chosen, and children enrolled. The rates in the table are per thousand dollars of
Employee and Spouse Rates Child (ren) Rates
Age of Employee Monthly Rate per $1,000 Amount of Insurance Flat Monthly
Under 30 $0.06 Option 15 days to max age Rate
30 - 34 0.08 1 $10,000 $1.00
35 - 39 0.09 2 $10,000 $1.00
40 - 44 0.10 3 $20,000 $2.00
45 - 49 0.15 4 $30,000 $3.00
50 - 54 0.24
55 - 59 0.49
60 - 64 1.10
65 - 69 1.95
70 - 74 3.53
75 and over 3.76
As an Augusta County School Board employee, you have a valuable way to
defer, or postpone, your taxes while saving for retirement when you participate in a Tax-
sheltered annuity (TSA). To enjoy this important tax advantage, you agree to have
payroll take the amount you want to invest “off the top” of your pay and redirect it into a
TSA account you select. The money goes into the TSA as “pre-tax” dollars. Since that
money does not count as income for tax purposes, you do not pay federal or state
income taxes on it now. This means your W-2 income is lower and you pay less in
Your annual salary if $30,000.
You invest $3,000 annually through the program.
Your federal and state income tax is based on $27,000, not $30,000.
This reduces the amount you pay in taxes.
The money you save in taxes will increase your disposable income. You
will not have to pay taxes on TSA contributions, or on the investment return they
earn, until you take that money out of your account. The chart below compares
tax-sheltered savings to after-tax savings (for example, through a savings
account at a bank):
After-Tax Savings Saving in the TSA
Monthly Investment $150 $150
Less Income Tax (28%) -42 -0
Net Monthly Investment $108 $150
Net Annual Investment $1,296 $1,800
A TSA not only offers a tax-effective way to invest a portion of your
income, but such savings may accumulate to substantial sums through the
years. But remember, contributing through a TSA only reduces your pay for
income tax purposes. It does not affect how pay raises are calculated, the
Social Security taxes you pay, or any of your benefits that are based on pay.
TAX-SHELTERED ANNUITIES (cont.)
The following types of funds are examples of those offered through a TSA
Fixed Accounts are those where you invest in the general assets of an insurance company.
The insurance company guarantees the principal against loss, and guarantees a minimum
interest rate on deposits. Fixed funds offer the lowest volatility risk of the funds, but you need
to be aware of the financial strength of the insurance company.
Money Market Funds seek to achieve a reasonable amount of current income consistent
with preservation of capital by investing exclusively in short-term vehicles.
Government Securities Funds invest primarily in a blend of mortgage-backed securities,
Treasuries, and agency securities.
Bond Funds invest primarily in corporate bonds of various quality ratings (and other fixed-
Balanced Funds invest in a combination of both stocks and bonds through either a fixed or
highly flexible strategy.
Specialty Funds invest primarily in equities of a single industry or sector, such as natural
resources, utilities, real estate, or precious metals.
Growth and Income Funds seek growth of capital and current income as near-equal
objectives; primarily invest in equity securities with above-average yields and some potential
Growth Funds invest primarily in securities. Current income, if considered at all, is a
Aggressive Growth Funds seek the rapid growth of capital, often through investment in
smaller companies and with techniques involving greater-than-average risk, such as short
selling, leveraging, and frequent trading.
International Funds invest heavily in foreign equity securities; domestic stocks may or may
not be held.
As you decide which funds to use, also consider the difference in investment
costs from one company or fund to another. The following fees and charges typically
may be built into TSA funds:
Sales charges are also known as “loads.” These may be charged to your account when you
invest in a fund (“front-end load) or receive a distribution from a fund (“back-end load”). The
purpose is to pay the sales representatives’ commissions.
Administrative/maintenance fees may be charged on a periodic basis to assist in offsetting
the company’s cost of maintaining your accounts during the period.
Surrender charges may be deducted when you take a distribution from your account.
Surrender charges may be based on years of participation (after you have made contributions
for a specified period of time, the surrender charge will be removed), or contribution years
(each contribution must remain in the fund for a specified period of time before the surrender
charge is removed).
TAX-SHELTERED ANNUITIES (cont.)
How Much To Invest
How much you set aside for retirement depends on many factors such as your
individual goals, what you can afford, and the contribution limits set by the Internal
Revenue Service. The contribution limits, called “maximum contribution allowance”
(MCA), are different for each person, may change each calendar year, and involve
complicated calculations. There is a calendar year limit, which is determined by several
formulas using information such as years-of-service, prior tax-sheltered contributions,
type of retirement plan, retirement plan contributions, salary, etc. The MCA is further
limited by a cap of $15,000 (for 2006) per calendar year on contributions made by salary
reduction. Employees with less than 15 years service with any public school district
within the Commonwealth of Virginia may shelter the lesser of the MCA calculation
amounts or $15,000. For employees with 15 or more years service and 50 years of age
or older, there is a special rule that allows for a maximum contribution up to $20,000.
(NOTE: Other contributions limits may apply depending on years service and age.
Please consult your TSA representative for further details)
How To Join The TSA Program
You may enroll in a TSA program at any time. To enroll, you must complete a
form called a Salary Reduction Agreement that, in effect, reduces your taxable salary.
This is necessary to redirect before-tax dollars into the program. Listed here are the
steps you take to open your TSA:
Contact the representative or company that you have selected, and fill out an application form.
Your company will calculate your maximum contribution limit. You should be prepared to
provide information like salary, other pre-tax deductions, year’s service, etc. to the company
so the calculation can be done to ensure that your contribution does not exceed the legal limit.
The Salary Reduction Agreement form must be completed when joining a TSA program,
making a change in the amount, changing companies, or terminating an existing agreement.
This form is available from the Payroll Office or your company’s local representative.
Comparison of Approved Tax Sheltered Annuity Products
The information contained in these pages is intended to
provide an overview of pertinent product information for the
companies offering Tax Sheltered Annuity (TSA) products to
Augusta County Public School employees. It is likely that parts
of this information are subject to change over time. With this in
mind, this comparison should not be an individual’s sole source
of product information but is strictly intended as an overview of
the available TSA products. Augusta County Public Schools
can neither recommend a company nor guarantee investment
return, interest rates, dividends, or tax advantages. Please refer
to the insurance company’s prospectus or other available sales
material regarding the specifics of each company’s product.
TSA PRODUCT LIST
(TSA Products granted payroll access as of 3/1/2005. Individual agents subject to change)
PRODUCT American Weaver Lincoln Mutual Fund VALIC
FEATURE Express Insurance National 403(b)7 Account American General
Agency Resources Trust Financial Group
COMPANY Michael L. Moles J.R. Showalter Deborah Scalise Rudy Masters Jr. Rob Lankard
CONTACT 540-943-9924 540-943-1221 888-433-9575 800-890-9665 800-365-8141
PERSON AND Linda 800-943-1221
TELEPHONE Hoover Robert Fleischman Wayne C. Berry Aaron Green
NUMBER 540-434-0484 800-515-7526 800-890-9665 800-892-5558
TYPES OF International International International No Load Mutual International
INVESTMENT Aggressive Growth Aggressive Aggressive Growth Funds 403(b)7: Aggressive Growth
ACCOUNTS Growth Growth Growth Growth Growth
AVAILABLE Growth and Growth Growth and Income Value Growth and Income
Income Growth and Balanced Bonds Specialty
Bond Income Bond Money Markets Balanced Bond
Money Market Specialty Money Market International Government Sec.
Fixed Balanced Fixed Money Market
Specialty Funds Bond Fixed
FINANCIAL see Resources
STRENGTH Trust prospectus
Moody's Aa2 Aa Aa3 Aa1
Duff & Phelps AAA AA AA+ AAA
A.M. Best A+ A+ A+ A++
Standard & Poor's Not rated AA+ AA- AAA
ANNUAL $30 (fee is waived $0–24,999 $7.50 $25 Va Cap fees: 1% of $15 (no fee for fixed
ADMINISTRATIVE for balances over 25,000-49,999 $3.75
assets under accounts)
FEE (per $25,000) qtr management,
participant) 50,000+ $0 Custodian
(no fee for fixed maintenance fee
SURRENDER/ Charge of 7% in Charge of Charges of 8% in No withdrawal Charge of 5% of
WITHDRAWAL years 1 - 3; 6% for 6% in years 1; year 1 - 5; 4% for charges other than lesser of (a) any
CHARGES year 4; 5% for year 5% for year 2; years 6 - 10; no custodian fee $10 contributions
5; 4% for year 6; 4% for year 3; charge after year 10. per distribution & received during last
3% for year 7; 2% 3% for year 4; Charges waived if IRS penalties. Roll 60 month period or
for year 8; no 2% for year 5; certain conditions are over to 403(b) or (b) the amount
charge after year 8. 1% for year 6; met. 403(b)7 with 30 day withdrawn. Charges
Charges waived if 0% for year 7. notice & no waived if certain
certain conditions termination charge conditions are met.
are met. Charges waived if
certain conditions are
This product list is a summary of materials furnished by the TSA Agents/Product providers and is
intended only to serve as a source of information for employees. Individuals should conduct their own
review and investigation when comparing products. The Augusta County School Board does not
recommend any particular product.
TSA PRODUCTS LIST
(TSA Products granted payroll access as of 3/1/2005. Individual agents subject to change)
PRODUCT Thrivent New York Mass Mutual VRSI Equitable
FEATURE Financial For Life Virginia Retirement
Lutherans Specialists Inc.
COMPANY Ron Blake James L. Brown James M. Masloff Denis Umidi Lynn Sisson
CONTACT 540-885-9806 540-886-3094 800-357-5880 540-337-1005 540-886-4280
PERSON AND 800-373-8937
TELEPHONE Jeffrey W. Brown Samuel Lapsley
NUMBER 540-885-5000 R. Steven Landes
C. Bud Somers
TYPES OF Fixed Growth Guaranteed Fixed Fixed
INVESTMENT Bond Balanced Money Market Variable Variable
ACCOUNTS Money Market Bond Managed Bond Custodial
AVAILABLE Balanced International Strategic Bond
Growth Government Sector Blend
Growth & Income Money Market Equity
Aggressive Growth Capital Appreciation
FINANCIAL Not Available
Moody's Aa2 Aa1 Aa1 Aa3
Duff & Phelps AAA AAA AAA
A.M. Best A++ A++ A++ A+
Standard & Poor's AAA AA+ AAA AA+
ANNUAL $25 for balances $30 $35 Fixed Fee - $0 Yrs 1-2: Lessor of
ADMINISTRATIVE less than $5000 Variable Annuities - $30 or 2% Annuity
FEE (per $0 - $30 Account Value; 3+:
participant) Mutual Funds - $10 $30 may be waived.
SURRENDER/ Charge of Charge of Charge of Mutual Funds, Fee- Charges are
WITHDRAWAL 7% in years 1; 7% in years 1 - 3; 8% in years 1; based accounts, no contribution based
CHARGES 6% for year 2; 6% for year 4; 8% for year 2; charge. and vary for years 0
5% for year 3; 5% for year 5; 7% for year 3; Variable Annuities – through 7
4% for year 4; 4% for year 6; 6% for year 4; 6% to 0% over 7
3% for year 5; 3% for year 7; 5% for year 5; years for some
2% for year 6; 2% for year 8; 4% for year 6; accounts.
1% for year 7. 1% for year 9. 3% for year 7; Charges waived for
2% for year 8; certain conditions.
1% for year 9.
This product list is a summary of materials furnished by the TSA Agents/Product providers and is
intended only to serve as a source of information for employees. Individuals should conduct their own
review and investigation when comparing products. The Augusta County School Board does not
recommend any particular product.