Common use of Buy Out Contributions Clause in Contracts

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.