Common use of Deferred Compensation Accounts Clause in Contracts

Deferred Compensation Accounts. The term “deferred compensation accounts” refers to 401(a) accounts, 403(b) accounts, 457 accounts, and VEBA accounts as defined by the Internal Revenue Service. A. All 401(a) Plan accounts established during previous Agreements, with the exception of the VEBA accounts and the 401(a) accounts established in the 2003-2004 Agreement, shall be considered fully vested. B. The Board will continue to fund all qualified 401(a) Plans, hereinafter referred to as “Deferred Compensation Plans,” established in previous Agreements for any bargaining unit member. C. The Board will contribute five and six-tenths percent (5.6%) of the base salary to the 401(a) Deferred Compensation Plan and an additional one percent (1.0%) of the base salary to a VEBA account for: a. bargaining unit members with less than twenty-three (23) years of experience for the 2011-2012 school year. D. The Board will contribute six and six-tenths percent (6.6%) of the base salary to the 401(a) Deferred Compensation plan for: a. bargaining unit members with at least twenty-three (23), but less than thirty-seven (37), years of experience for the 2011-2012 school year. E. Teachers with thirty-nine (39) years or more experience did not qualify for a 401a in 2004/2005. These teachers received additional Basic Salary. F. Contributions by the Board to the 401(a) Deferred Compensation Plan shall be 100% Vested after five (5) Total Years of Service at Perry Township Schools.