Louise trustees considering staff savings match
By APRIL HAMMAN Louise Correspondent

An additional employee retirement package or "457 plan" was debated by Louise school trustees during their last meeting, but a final decision will be delayed until after November's election.

Although members seemed to have agreed upon the plan, trustee David Menefee said he would like to see how the plan is working for other districts in the surrounding area.

Because educators are also government workers, they qualify for two retirement plans - a 403(b) and the 457 plan. The 403(b) plan is similar to a 401(k), but only offered to public school employees.

Both plans reduce an employee's taxable income by withholding contributions before taxes are computed.

With the 457 plan, LISD can set a matching contribution rate.

Superintendent Andy Peters said "if an employee vests $50, the district will match the $50."

The matched amount will not be available to the employee until the employee is vested.

Vesting likely will start at two years of employment and participation in the plan, he said. At that point, an employee will be 25 percent vested in the program.

If the employee leaves or withdraws from the plan before the two-year mark, the matching contribution goes back to the school district.

For an employee to be 100 percent vested, they must participate and work for five years.

Unlike the popular 401(k) plan, if one decides to withdraw the money from their 457 account prior to 59 1/2 years of age, they will be charged a 20 percent income tax, but not the additional 10 percent tax penalty.

The minimum monthly contribution to the plan is $20. The maximum amount that one can contribute annually is $15,500.

Board members along with Superintendent Peters discussed different ways of handling account contributions. One option would be to distribute the employees' contribution, but keep the district's matched funds in the school's bank account until the employee is vested.

No formal action was taken during the Sept. 10 session.