Common use of Compensation Increases Clause in Contracts

Compensation Increases. Severance Agreements Any contract that contains a condition of severance pay must include the following provisions required by the Government Severance Pay Act (GSPA), 5 ILCS 415/10: 1. A restriction to an amount not exceeding 20 weeks of compensation; and 2. A prohibition for any severance if the Superintendent is fired for misconduct by the Board. See the Severance Pay row under the Changes to the Superintendent’s Employment Contract subhead below for a definition of what misconduct means in the context of this law. Teachers Retirement System (TRS) & Teacher Health Insurance (THIS) How does the Board want to address: 1. Pension contributions (TRS-THIS)? 2. Inclusion of salary and other compensation in the payment of TRS and THIS? Or, will TRS and THIS be in addition to salary and other compensation? 3. Unforeseen pension reform issues?

Compensation Increases. Severance Agreements Any contract that contains a condition of severance pay must include the following provisions required by the Government Severance Pay Act (GSPA), 5 ILCS 415/10: 1. A restriction to an amount not exceeding 20 weeks of compensation; and 2. A prohibition for any severance if the Superintendent Director is fired for misconduct by the Board. See the Severance Pay row under the Changes to the SuperintendentDirector’s Employment Contract subhead below for a definition of what misconduct means in the context of this law. Teachers Retirement System (TRS) & Teacher Health Insurance (THIS) How does the Board want to address: 1. Pension contributions (TRS-THIS)? 2. Inclusion of salary and other compensation in the payment of TRS and THIS? Or, will TRS and THIS be in addition to salary and other compensation? 3. Unforeseen pension reform issues?

Compensation Increases. Severance Agreements Any contract that contains a condition of severance pay must include the following provisions required by the Government Severance Pay Act (GSPA), 5 ILCS 415/10, added by P.A. 100-895: 1. A restriction to an amount not exceeding 20 weeks of compensation; and 2. A prohibition for any severance if the Superintendent is fired for misconduct by the Board. See the Severance Pay row under the Changes to the Superintendent’s Employment Contract subhead below for a definition of what misconduct means in the context of this law. Teachers Retirement System (TRS) & Teacher Health Insurance (THIS) How does the Board want to address: 1. Pension contributions (TRS-THIS)? 2. Inclusion of salary and other compensation in the payment of TRS and THIS? Or, will TRS and THIS be in addition to salary and other compensation? 3. Unforeseen pension reform issues?