Matching Annuity Retirement Savings Program. The Board and Association specifically reserved the authority to revise or terminate the retirement benefits contained in earlier agreements. Exercising this authority, the Board and Association confirm that the language of Article X, Sections A through E (Retirement and TSA Provisions), found in the 1998-2003 collective bargaining agreement (“prior Agreement”) between the School Corporation and the Norwell Classroom Teachers Association are terminated and shall not apply to any teacher retiring or severing employment with the School Corporation on or after the effective date of these provisions. Those teachers who retired or severed employment before the effective date of these provisions shall only be entitled to the retirement benefits contained in the collective bargaining agreement in effect at the time he or she retired, but as may be otherwise revised from time to time. Upon retirement from the Northern Xxxxx Community Schools (‘School Corporation”), a teacher shall be full vested in the retirement benefits described in this Article if the retiring teacher has satisfied the following requirements: 1. The retiring teacher must have been employed by the Northern Xxxxx Community Schools before June 30, 2004. 2. Immediately prior to retirement, the retiring teacher must have completed fifteen (15) years with the Northern Xxxxx Community Schools. 3. The retiring teacher must be at least fifty-five (55) years old at the time of retirement. Retirements may take place at the end of a semester or school year. These requirements may be waived at the discretion of the School Corporation. In addition, these requirements may be waived in cases of retirement caused by disability or ill health, provided the retiring teacher provides satisfactory medical documentation to the School Corporation. The ISTA Financial Services Corporation (“FSC”) has been selected to determine the present value of the unfunded Retirement Severance Pay and Retirement Bridge Program benefits described in the Prior Agreement. In making this present value determination, FSC shall use the following assumptions: 1. The assumed short-term interest rate for the first three (3) years for purposes of determining the present value is 4%, the interest rate for the next three years is 5.83%, and the assumed long-term interest rate for purposes of determining the present value is 7.50%. 2. It is assumed that an employee terminates employment at the end of the school year in which the employee attains age 58, becomes eligible for ISTRF benefits, or at the end of the current year, if the individual is already 58 or older. 3. The anticipated amount of the Retirement Pay shall be calculated using the 2003-04 dollar amounts and the formula set forth in Article X of the Prior Agreement. The calculations further assume that each teacher carries his or her average annual sick leave accumulation forward until such time as he or she reaches the contractual maximum of two hundred (200) days. However, it is assumed that individuals do not retire until the later of: (i) the attainment of age 58 or (ii) satisfaction of the eligibility requirements of Section B of this new Article. 4. The present value of the future Retirement Pay will be reduced by the Social Security and Medicare taxes (FICA) that would have been payable by the retiring teacher if the Retirement Pay had been paid directly to the teacher. 5. Teachers newly hired or re-hired after June 30, 2004, shall not be entitled to any payment for the eliminated retirement benefits provided by Article X of the Prior Agreement. In other words, no buyout contribution shall be made for teachers newly hired or re-hired after June 30, 2004. 6. Amounts forfeited upon termination of employment because of the failure to meet the applicable vesting requirements shall not be reinstated or re-credited if an individual is subsequently rehired or re-employed by the School Corporation. However, if the Board shall have approved a leave of absence of not more than one (1) fiscal year for an employee, or if an employee is reduced pursuant to the provisions of this Agreement, such period of layoff or leave shall not result in forfeiture provided the employee shall promptly return to employment following the expiration of the period of layoff or leave.
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Samples: Collective Bargaining Agreement, Collective Bargaining Agreement, Collective Bargaining Agreement
