A school committee or board of trustees may enter into a written agreement with any employee to purchase or make payments to an annuity contract or custodial account when?

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The timing window for these agreements is about aligning employee benefit arrangements with the new school year’s budgeting and payroll cycle. Public school districts often use annuities or custodial accounts as a form of voluntary, tax-advantaged retirement savings. Requiring a written agreement within ninety days of the opening of the school year ensures that enrollment decisions, payroll deductions, and funding can be integrated into the current year's budgeting and oversight processes. It provides a clear, predictable window for participation and board approval.

Choosing a narrower window (within the first 30 days) would unnecessarily restrict participation and complicate enrollment. Allowing any time during the year would disrupt budgeting and governance, and waiting until the end of the year would miss the new year’s budgeting cycle, creating timing and processing problems for payroll deductions.