Deferral of Severance Pay. The employer shall provide severance pay for those full time members who retire from the Akron Public Schools under service provisions of the School Employees Retirement System within three (3) years of their last work day with the Board.
1. Notwithstanding anything in this Agreement or Board policy to the contrary, effective December 1, 2005 in accordance with the terms of this section and any related provisions of a plan document adopted by the Board to comply with the requirements of section 403(b) of the Internal Revenue Code (the “IRC”), certain retiring members shall have their severance pay mandatory paid into an annuity contract or custodial account that is designed to meet the tax qualification requirements of the IRC section 403 (b) (a “TSA”) for purposes of this section, this arrangement that will be effective December 1, 2005 is referred to as the “403(b) plan.”
2. The terms of the 403 (b) plan shall include the following:
a. Participation in the 403 (b) plan shall be mandatory for any member who meets both of the following requirements:
1) The member’s last day of employment is after the calendar year in which the member attained age 54.
2) The member is entitled to $1,000 or more of severance pay.
b. If a retiring member is a participant in the 403 (b) plan, an employer contribution shall be made on his or her behalf under the 403(b) plan in an amount equal to the lesser of:
1) The total amount of the participant’s severance pay, or
2) The maximum contribution amount allowable under the terms of the 403 (b) plan. To the extent that the member’s severance pay exceeds the maximum amount allowable under the 403(b) plan, the excess amount shall be paid to the retiring member in cash.
c. A retiring member who is a participant in the 403(b) plan shall designate the TSA provider who is to receive the contribution under the 403(b) plan; provided, however, that any such provider must be on the approved list of TSA providers that is in effect at that time of the member’s retirement; and the Board shall continue to have authority to continue to approve or disapprove of TSA contract providers.
d. If a retiring member is entitled to have a contribution paid to the 403(b) plan and dies prior to such contribution being paid to the 403(b) plan and shall be paid to a beneficiary of the member in accordance with the terms of the TSA.
3. If a member who is entitled to severance pay is not required to be a participant in the 403(b) plan, the member’s severance p...
Deferral of Severance Pay. Retiring teachers who are entitled to severance pay shall have their “Severance Pay” mandatorily paid into an annuity contract or custodial account that is designed to meet the tax-qualification requirements of IRC Section 403(b) (a “TSA”). This arrangement shall be referred to herein as the “403(b) Plan”. The provisions of this section are effective for all employees whose retirement effective dates are after the date of this agreement. Any deferral under the 403(b) Plan shall meet applicable IRS regulation requirements. The TSA that shall be used for the 403(b) Plan shall be the group annuity contract of VOYA. A participant in the 403(b) Plan shall complete the VOYA enrollment forms, and unless and until a retiring teacher does so, no contribution of Severance Pay shall be made to the 403(b) Plan on behalf of the retiring teacher. A successor company or companies may be selected at any time by mutual agreement of the Board and the Association. If a retiring teacher is entitled to have a contribution paid to the 403(b) Plan, completed necessary VOYA enrollment forms, and dies prior to such contribution being paid to the 403(b) Plan, the contribution shall be paid to the 403(b) Plan provider and then paid to a Beneficiary of the retiring teacher in accordance with the terms of the 403(b) Plan, unless otherwise ordered by a probate court. The Plan Year of the 403(b) Plan shall be the calendar year. All contributions to the 403(b) Plan and all deferrals to a TSA shall be subject to reduction for any tax withholding or other withholding that the Treasurer in his/her sole discretion, determines is required by law. Neither the Board nor the Association guarantee any tax results associated with the 403(b) Plan or deferrals to a TSA.
Deferral of Severance Pay. 1. Notwithstanding anything in this Agreement or Board policy to the contrary, in accordance with the terms of this Agreement and any related provisions of a plan document adopted by the Board to comply with the requirements of Section 403(b) of the Internal Revenue Code (the “IRC”), certain retiring employees shall have the total amount that otherwise would be payable to the Participant as severance pay under Article XIV, Paragraph G (“Severance Pay”) mandatorily paid into an annuity contract or custodial account that is designed to meet the tax-qualification requirements of IRC Section 403(b) (a “TSA”). For purposes of this Agreement, this arrangement is referred to as the “403(b) Plan”. The provisions of this Agreement are effective for all employees whose retirement effective dates are after the date of this Agreement.
2. The terms of the 403(b) Plan shall include the following:
a. Participation in the 403(b) Plan shall be mandatory for any teacher who is entitled to Severance Pay and retires after the calendar year the teacher attains age 54.
b. If a retiring teacher is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the total amount that otherwise would be payable to the Participant as Severance Pay.
c. Except as provided below, the required contribution to the 403(b) Plan shall be made within the timeframe described in Article XIV, Paragraph G. regarding the payment of severance pay.
d. In the calendar year of retirement, or in any other calendar year, the total amount of Severance Pay that may be paid to a TSA under the 403(b) Plan shall not exceed the maximum contribution amount allowable under the federal income tax law for TSAs that are intended to be tax qualified under IRC Section 403(b). If the amount payable to the 403(b) Plan in any calendar year would exceed the maximum amount that is permitted under the applicable federal income tax law for that year, the excess amount shall be contributed to the 403(b) Plan after the first payroll date in January of the next calendar year. This process shall be repeated for up to five calendar years following the year of retirement, in each such year not to exceed the maximum amount permitted under the applicable federal income tax law for that year; and if there are still any remaining excess amounts in the fifth calendar year after retirement, the remaining excess shall be paid in cash to the retired member.
e. Unles...
