Defined Contribution Pension. Bargaining unit members hired by the Township on or after January 1, 2024 shall be ineligible for the MERS pension system and required to enter a defined contribution retirement system established by the Township. Operating under section 401(a) of the Internal revenue Service Code, all employee contributions will be made on a pre-tax basis. The employee will be required to contribute a mandatory four percent (4%) of the employee’s base wage, excluding overtime or any other special payments. The Township will contribute an amount equal to eight percent (8%) of the employee’s base wage, excluding overtime or any other special payments. The vesting schedule for employer contributions applied to the defined contribution pension plan shall be twenty percent (20%) per year with full vesting upon completion of five (5) years of service.
Appears in 3 contracts
Samples: Agreement, Collective Bargaining Agreement, Collective Bargaining Agreement
Defined Contribution Pension. Bargaining unit members hired by the Township on or after January 1, 2024 2024, shall be ineligible for the MERS pension system and required to enter a defined contribution retirement system established by the Township. Operating under section 401(a) of the Internal revenue Service Code, all employee contributions will be made on a pre-tax basis. The employee will be required to contribute a mandatory four five percent (45%) of the employee’s base wage, excluding overtime or any other special payments. The Township will contribute an amount equal to eight percent (8%) of the employee’s base wage, excluding overtime or any other special payments. The vesting schedule for employer contributions applied to the defined contribution pension plan shall be twenty percent (20%) per year with full vesting upon completion of five (5) years of service.
Appears in 1 contract
Samples: Collective Bargaining Agreement
