Tax Sheltered Annuities
Click here for information on Tax Shelter Annuities and resources to help you chooses the best account for you.
ALL EMPLOYEES ARE ELIGIBLE, AT ANY TIME, to save for retirement by contributing to a 403(b) Plan and/or an NYS Deferred Compensation 457(b) Plan, through payroll deductions. There are two major benefits to participating in these tax shelter plans.
You do not pay income tax on contributions until you begin making withdrawals from the plan, usually after you retire.
Earnings and gains are not taxed until you make withdrawals.
403(b) Plan
This is an employer-sponsored retirement plan offered to tax-exempt and municipal employees. It is very similar to a 401(k), with the main difference being the 401(k) is for private-sector employees. A 403(b) offers you the opportunity to save money from your paycheck pre-tax, so you will defer paying federal and state income taxes on your retirement account savings and your investment earnings until you withdraw the money at retirement.
To establish a 403(b) account, the employee contacts an advisor from one of the vendors that the district does business with and he/she will help you put together a portfolio (see list below under Related Files). The advisor will take into consideration many factors that include, but are not limited to:
What is your and/or your spouse’s age?
How many years will you continue to work before retiring?
What type of lifestyle do you want to live in retirement? Do you want to work part-time or not at all, travel, or stay local?
How much risk are you willing to take? You can invest conservatively with little to no risk, moderately invest by taking some risk or invest aggressively by taking more risk.
Once you make these determinations, your advisor can assist you in setting up an account structure that is right for you.
How to Enroll
The District has contracted with The OMNI Group to administer the 403(b) Tax Shelter Program. Please visit their website for further information or complete a Salary Reduction Agreement (SRA) to make changes to your existing account. (Please note that while the OMNI SRA has the availability to list multiple Service Providers, you may only choose ONE (1) provider for your payroll deductions.) To open a new account, please refer to the list of Participating Service Providers that is provided below for your convenience. Complete and submit your Salary Reduction Agreement directly to OMNI.
2025 Maximum Allowable Contribution (MAC) limit is $23,500. For those age 50 or older are able to contribute more, often referred to the catch-up amount. Age is based on the age you turn that calendar year.
Age 50-59, catch-up amount is $7,500, total limit $31,000
Age 60-63, catch-up amount is $11,250, total limit $34,750
Age 64+, catch-up amount is $7,500, total limit $31,000
List of Participating Providers
OMNI Salary Reduction Agreement
2025 Universal Availability Notice
Termination Pay into a 403(b)
Any employee having their termination pay deposited into a 403(b) must have an open account with one of the Participating Providers.
Non-Elective- If you are a BCSA or BTF employee who is planning to retire, you are required to deposit termination pay into a 403(b) account. The District must receive approval from OMNI that your account is approved to accept funds. The District has up to 60 days from the date of your retirement to make the deposit, however they cannot deposit it without the approval from OMNI.
Elective- If you are choosing to have your termination pay deposited into your 403(b) account, complete an OMNI Salary Reduction Agreement selecting One-Time Contributions (Elective Contributions Only).
How to Move/Access Your Funds
When accessing your 403(b) funds, a signature from the Plan Administrator is required on transaction paperwork. This signature is to verify your eligibility of the requested transaction. The District utilizes the services of OMNI to verify what is needed and provide our employees/retirees with a Certificate of Approval in leu of a signature. Transaction options include:
Death Claim
Disability, Distribution
Exchange, Hardship
Unforeseeable Emergency Withdrawal
Loan
Qualified Domestic Relations Order (QDRO)
Required Minimum Distribution
Rollover
Service Credit
Transfer
You can access each transaction form here. Select the icon for the form you need to complete. If you are unsure, use the tabs on top of the form page to guide you on which form you should be completing.
Once submitted, OMNI will start processing your request. OMNI will verify any necessary information with the District before authorizing your transaction and will email a Certificate of Approval, which should be printed and submitted to the Service Provider with any required paperwork. If you are working with a financial advisor, you can include their contact information on the form, and they will receive a copy of the Certificate of Approval too.
Please note that moving your 403(b) funds into an IRA is considered a Distribution transaction.
NYS Deferred Compensation 457(b) Plan & Roth 457
This is a retirement plan, which is like a 401(k) for public service employees, that can help supplement your pension. It’s specifically designed for those who work for the state or local government, has the flexibility to adjust as your needs change, and can help you turn your salary into a more comfortable retirement.
More information can be found on the NYSDCP website or by contacting the WNY Representative, Mark Wallace via email or phone 1-716-903-7253.
If you are already enrolled in the Plan and wish to make changes to your bi-weekly contribution, please contact NYSDCP.
2025 Maximum Allowable Contribution (MAC) limit is $23,500. For those age 50 or older are able to contribute more, often referred to the catch-up amount. Age is based on the age you turn that calendar year.
Age 50-59, catch-up amount is $7,500, total limit $31,000
Age 60-63, catch-up amount is $11,250, total limit $34,750
Age 64+, catch-up amount is $7,500, total limit $31,000
Note: You may contribute to both a 403(b) and a 457 NYS Deferred Compensation Account.
What annuity is best for you?
Unfortunately, we cannot advise you on what annuity to choose. However, we have included a link and a plan comparison document for you to review to help you make the best decision for yourself.