Buy Out Contributions. For each employee included in this buy-out plan, 50% of the total contribution will be placed in a voluntary employees’ beneficiary association (“VEBA”) as described in section 501(c)(9), and the remaining 50% of the total contribution will be placed in a standard 401(a) or 403(b) account. A teacher will have no direct access to either account until that individual has retired after having satisfactorily attained the eligibility criteria specified above; however, each employee may determine how his or her account shall be invested among the investment options provided by the vendor.
Buy Out Contributions. 1. VEBA The school corporation shall contribute to a voluntary employee’s beneficiary association (AVEBA@) as described in section 501 c (9) of the Code, that amount representing the present value of the group health insurance benefits and as calculated for all employees under subsection C (3) above. The school corporation and the various representative employees will establish a committee to select a vendor. A committee of four (4) representatives of the Association and four (4) representatives of the school corporation shall select the vendor for the VEBA. Selection of the vendor must be mutually agreeable to both parties. The vendor selected by the committee is VALIC. The terms and conditions for the administration and operations of the VEBA shall be as follows:
a. The amount calculated for each employee will be invested in a separate account. There will be no commingling of accounts and each employee may determine how his/her account shall be invested among the investment options made available by the vendor for the VEBA.
b. Until such time that an employee has retired and satisfied the eligibility requirements set forth in subsection B of this Appendix, the employee shall have no access to the assets held in his/her separate VEBA account.
c. If an employee retires or otherwise terminates employment before satisfying the requirements set forth in subsection B of this Appendix, the terminated employee’s VEBA account shall be forfeited. Forfeited amounts shall be reallocated at the end of each plan year only among the then remaining separate VEBA accounts. This allocation shall be in a manner similar to that used by the Educational Services Corporation in initially determining the present value calculations. Therefore, the VEBA account of the following employees will not share in the forfeiture of a VEBA account:
i. Employees who forfeited their VEBA accounts in the same year;
ii. Employees who previously forfeited their VEBA accounts.
d. Following retirement and the satisfaction of the requirements set forth in subsection B of this Appendix, a retired employee may use the amount held in his/her separate VEBA account to pay health insurance premiums, and to be reimbursed for un-reimbursed medical expenses of the employee, spouse, or dependents. Furthermore, following the death of an employee who had otherwise satisfied the requirements of subsection B of this Appendix, any amounts remaining in the deceased employee’s VEBA account may continue to be used ...
Buy Out Contributions. A. The school corporation shall contribute to an individual VEBA account on behalf of each teacher fifty percent (50%) of the amount representing the present value of the retirement severance pay as calculated for employees under subsection 17.3 above. The ISTA Financial Services Corporation shall administer the VEBA and shall be the single investment vendor for the VEBA. The terms and conditions for the administration and operations of the VEBA shall be as follows:
1. The amount calculated for each employee will be invested in a separate account. There will be no commingling of accounts and each employee may determine how his or her account shall be invested among the investment options made available by the vendor for the VEBA.
Buy Out Contributions. Employees eligible for the retirement bridge buy-out shall have the computed buy-out amounts deposited into VEBA and 401(a) plans as established by the Memorandum of Agreement between the parties of June 15, 2004.
Buy Out Contributions
