Payment and Deferral of Retirement Incentive. a. Notwithstanding anything in this Agreement or Board policy to the contrary, 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 employees shall have their Retirement Incentive (as defined below) 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”). Such payment shall be in lieu of the payment being made directly to the retired teacher. For purposes of this Section, this arrangement is referred to as the 403(b) Plan. The TSA that shall be used for the 403(b) Plan shall be the group annuity contract of VALIC. 403(b) Plan participants shall be required to complete VALIC enrollment forms; and unless and until a teacher does so, no contribution of Retirement Incentive shall be made to under the 403(b) Plan on behalf of the teacher. A successor company(ies) to VALIC may be selected at any time by mutual agreement of the Board and The Cleveland Heights Teachers Union. b. For purposes of the 403(b) Plan, the term “Retirement Incentive” shall include:
Appears in 12 contracts
Samples: Collective Bargaining Agreement, Collective Bargaining Agreement, Collective Bargaining Agreement
Payment and Deferral of Retirement Incentive. a. Notwithstanding anything in this Agreement or Board policy to the contrary, 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 employees shall have their Retirement Incentive (as defined below) 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”"). Such payment shall be in lieu of the payment being made directly to the retired teacher. For purposes of this Section, this arrangement is referred to as the 403(b) Plan. The TSA that shall be used for the 403(b) Plan shall be the group annuity contract of VALIC. 403(b) Plan participants shall be required to complete VALIC enrollment forms; and unless and until a teacher does so, no contribution of Retirement Incentive shall be made to under the 403(b) Plan on behalf of the teacher. A successor company(ies) to VALIC may be selected at any time by mutual agreement of the Board and The Cleveland Heights Teachers Union.
b. For purposes of the 403(b) Plan, the term “"Retirement Incentive” " shall include:
Appears in 2 contracts
Samples: Collective Bargaining Agreement, Collective Bargaining Agreement
