PART XIII.  PURCHASE OF ANNUITIES BY SCHOOL BOARDS

§1315.  Purchase of annuities by school boards for teachers and other school employees; income taxation thereof

A.  For the purpose of providing tax-sheltered annuities to its teachers and other employees, each parish school board and each city school board is hereby authorized to purchase annuities from any insurer or insurers authorized to do business in this state, and for this purpose each school board may enter into agreements with any of its teachers and other employees to provide that the teacher's or other employee's salary may be reduced by the amount set aside to purchase his or her annuity, even though such reduction may bring the net salary paid below the minimum salary required by law.

B.  The provisions of this section shall not operate to repeal R.S. 17:864, but shall be supplemental thereto.

C.  Any amounts so set aside and used to purchase annuities as provided in Subsection A of this Section shall not be subject to state income taxation in the year so set aside and used to purchase such annuities, but said amounts shall be subject to state income taxation in the years and to the extent in which such teachers and other school employees actually receive payments under said annuities.

Added by Acts 1963, No. 117, §1.  Amended by Acts 1966, No. 371, §1.