Common use of Ongoing Contributions Clause in Contracts

Ongoing Contributions. Effective during the term of this Agreement, the parties agree that the Board shall contribute an amount equal to 1.5% of each teacher’s base salary to the Corporation’s VEBA plan each pay period. The provider of the plan shall be selected as provided for in Article IX, L, 7. Contributions made by the Corporation on behalf of participants will become vested in this plan upon qualification for full Teacher Retirement Fund benefits under the Indiana Public Retirement System (INPRS). Until such time of becoming vested, all amounts contributed by the Board shall not be available to the participant. Upon termination for any reason other than permanent, total disability, involuntary reduction in force (RIF), layoff, or justifiable decrease in the number of teaching positions, or voluntary resignation after vesting, and to the extent allowed by IRS regulations, any funds forfeited by a participant as a result of the participant separating from employment, will be placed in the plan’s forfeiture suspense account, used to pay for the plan’s administrative expenses, and/or offset future contributions. Participants who are subject to an involuntary RIF or have their contract cancelled due to a justifiable decrease in the number of teaching positions, who are not vested in the plan, and have at least ten (10) years of service with the School Corporation will be deemed vested prior to separation from employment with the School Corporation. Board annual contributions made after the start of the 2016-2017 school year and earnings upon those contributions which are forfeited shall be used to offset future annual Board Contributions.

Ongoing Contributions. Effective during the term of this Agreement, the parties agree that the Board shall contribute an amount equal to 1.51% of each teacher’s base salary to the Corporation’s VEBA plan each pay period. The provider of the plan shall be selected as provided for in Article IX, L, 7. Contributions made by the Corporation on behalf of participants will become vested in this plan upon qualification for full Teacher Retirement Fund benefits under the Indiana Public Retirement System (INPRS). Until such time of becoming vested, all amounts contributed by the Board shall not be available to the participant. Upon termination for any reason other than permanent, total disability, involuntary reduction in force (RIF), layoff, or justifiable decrease in the number of teaching positions, or voluntary resignation after vesting, and to the extent allowed by IRS regulations, any funds forfeited by a participant as a result of the participant separating from employment, will be placed in the plan’s forfeiture suspense account, used to pay for the plan’s administrative expenses, and/or offset future contributions. Participants who are subject to an involuntary RIF or have their contract cancelled due to a justifiable decrease in the number of teaching positions, who are not vested in the plan, and have at least ten (10) years of service with the School Corporation will be deemed vested prior to separation from employment with the School Corporation. Board annual contributions made after the start of the 2016-2017 school year and earnings upon those contributions which are forfeited shall be used to offset future annual Board Contributions.