Common use of Payment and Deferral of Severance Pay Clause in Contracts

Payment and Deferral of Severance Pay. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a Tax Deferred 403(b) Severance Special Pay Plan. 1. The terms of the 403(b) Special Pay Plan shall include the following: a. Participation in the 403(b) Special Pay Plan shall be mandatory for any teacher actively employed on or after September 1, 2017, who would be entitled to severance pay under Article X Section 5 and/or retirement incentive pay under Article X Sections 7 and 8, and who is or will be age 50 years or older in the calendar year in which the teacher retires, or, in the case of a retired/rehired teacher, resigns. b. If a retiring teacher is a required participant in the 403(b) Special Pay Plan, an employer contribution shall be made on his/her behalf under the 403(b) Special Pay Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article X Section 5 and any retirement incentive pay in accordance with Article X Sections 7 and 8. Payment of such amounts under the Special Pay Plan shall be in lieu of payment of severance and incentive pay directly to the retiring Employee; and no required participant shall have the option of receiving payment of such severance and incentive pay directly in cash. c. The required contribution to the 403(b) Special Pay Plan shall be made within the timeframe described in Article X Section 5 regarding the payment of severance pay and shall be made within the timeframe described in Article X Sections 7 and 8 regarding the payment of retirement incentive pay; provided, however, that if the amount payable to the 403(b) Special Pay Plan in the calendar year of retirement would exceed the maximum amount that is permitted under the applicable federal income tax law for that year, the remaining amount shall be contributed to the 403(b) Special Pay Plan after the first payroll date in January of the next calendar year; and if there is any remaining amount of severance and incentive pay, the excess amount shall be paid to the participant in cash. d. A teacher who is a participant in the 403(b) Special Pay Plan shall complete a sponsor enrollment package prior to retirement; and unless and until a teacher does so, no contribution of severance pay and/or retirement incentive pay shall be made to the 403(b) Special Pay Plan on behalf of the teacher, nor will teacher be paid directly in cash for severance and/or incentive pay. e. If a teacher is entitled to have a contribution paid to the 403(b) Special Pay Plan and dies prior to such contribution being paid to the Plan, the contribution shall be paid to a Beneficiary of the teacher in accordance with the terms of the 403(b) Special Pay Plan. In the event no beneficiary was designated by the employee, the contribution will be paid to the deceased’s estate. f. The Plan year shall be the calendar year. g. The Board shall have authority to approve or disapprove of Plan Providers. The Board shall attempt to find a reputable company providing a 403(b) Plan that does not charge any administrative fees. However, if no such company can be found, any administrative fees shall be borne by the 403(b) Plan participants. 2. Any teacher who is entitled to severance pay and/or retirement incentive pay, who is not an eligible participant in the 403(b) Special Pay Plan, will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles X Section 5 and Article X Sections 7 and 8. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Service Code Section 403(b) (a “TSA”) as permitted by law. 3. All contributions to the Plan, all deferrals to a TSA, and all check payments to teachers, shall be subject to reduction for any tax withholding or other withholding if required by law. Neither the Board nor the W.E.A. guarantees any tax results associated with the 403(b) Special Pay Plan, deferrals to a TSA, or check payments made to a teacher. 4. In the event a teacher is ineligible to participate in the 403(b) Special Pay Plan and dies, the Severance Pay shall be paid to the employee’s estate.

Payment and Deferral of Severance Pay. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a Tax Deferred 403(b) Severance Special Pay Plan (“The Plan. 1”) for District employees with terms that comply with the requirements of this Paragraph. Employees shall access “The Plan” by choosing from a list of District-approved plan providers. The terms of the 403(b) Special Pay The Plan shall include the following: a. : Participation in the 403(b) Special Pay The Plan shall be mandatory for any teacher actively employed on or after September 1employed, 2017, who would be entitled to severance pay under Article X Section 5 and/or retirement incentive pay under Article X Sections 7 and 8, and who is or will be age 50 fifty-five (55) years or older in the calendar year in which the teacher retires, or, in the case of a retired/rehired teacherteacher who did not retire from the District/collect severance from the District, resigns. b. If a retiring teacher is a required participant in the 403(b) Special Pay Plan, an . An employer contribution shall be made on his/her behalf under the 403(b) Special Pay The Plan in an amount equal to the total amount of the Participantparticipant’s severance pay in accordance with Article X Section 5 and any retirement incentive pay in accordance with Article X Sections 7 and 8severance. Payment of such amounts under the Special Pay Plan shall be in lieu of payment of severance and incentive pay directly to the retiring Employee; and no required participant shall have the option of receiving payment of such severance and incentive pay directly in cash. c. The required contribution to the 403(b) Special Pay The Plan shall be made within the timeframe described in Article X Section 5 under this provision regarding the payment of severance pay and shall be made within the timeframe described in Article X Sections 7 and 8 regarding the payment of retirement incentive pay; provided, however, that if the amount payable to the 403(b) Special Pay The Plan in the calendar year of retirement would exceed the maximum amount that is permitted under the applicable federal income tax law for that year, the remaining amount shall be contributed to the 403(b) Special Pay The Plan after the first payroll date in January of the next calendar year; and if there is any remaining amount of severance and incentive pay, the excess amount shall be paid to the participant in cash. d. . A teacher who is a participant in the 403(b) Special Pay The Plan shall complete a The Plan sponsor enrollment package prior to retirement; and unless and until a teacher does so, no contribution of severance pay and/or retirement incentive pay shall be made to the 403(b) Special Pay The Plan on behalf of the teacher, nor will teacher be paid directly in cash for severance and/or incentive pay. e. . If a teacher is entitled to have a contribution paid to the 403(b) Special Pay The Plan and dies prior to such contribution being paid to the The Plan, the contribution shall be paid to a Beneficiary of the teacher in accordance with the terms of the 403(b) Special Pay The Plan. In the event vent no beneficiary was designated by the employee, the contribution Severance Pay will be paid to the deceased’s estate. f. . After adoption of The Plan year shall be the calendar year. g. The Board shall have authority to approve or disapprove of Plan Providers. The Board shall attempt to find a reputable company providing a 403(b) Plan that does not charge any administrative fees. However, if no such company can be foundPlan, any administrative fees shall be borne by the 403(b) The Plan participants. 2Participants. Any teacher who is entitled to severance pay and/or retirement incentive pay, who is not an eligible participant in The Plan (i.e., under the 403(bage of 55) Special Pay Plan, will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles X Section 5 and Article X Sections 7 and 8payments. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Service Code Section 403(b) (a “TSA”) as permitted by law. 3law and Board policy. All contributions to the The Plan, all deferrals to a TSA, and all check payments to teachers, shall be subject to reduction for any tax withholding or other withholding if that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the W.E.A. Association guarantees any tax results associated with the 403(b) Special Pay The Plan, deferrals referrals to a TSA, TSA or check payments made to a teacher. 4. In the event a teacher is ineligible to participate in the 403(b) Special Pay The Plan and dies, the Severance Pay shall be paid to the employee’s estate.

Payment and Deferral of Severance Pay. 1. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a the “AIG Tax Deferred 403(b) Severance Special Pay Annuity Plan for Government Employees” Document (the “AIG 403(b) Plan”) with terms that comply with the requirements of this Paragraph 2. 12. The terms of the 403(b) Special Pay Plan shall include the following: a. Participation in the AIG 403(b) Special Pay Plan shall be mandatory for any teacher actively employed on or after September 1, 20172005, who would be entitled to severance pay under Article X XXII Section 5 D and/or retirement incentive pay under Article X Sections 7 and 8XXIII (if applicable), and who is or will be age 50 55 years or older in the calendar year in which the teacher retires, or, in the case of a retired/rehired teacher, resigns. b. If a retiring teacher is a required participant in the AIG 403(b) Special Pay Plan, an employer contribution shall be made on his/her behalf under the AIG 403(b) Special Pay Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article X XXII Section 5 D and any retirement incentive pay in accordance with Article X Sections 7 and 8. Payment of such amounts under the Special Pay Plan shall be in lieu of payment of severance and incentive pay directly to the retiring Employee; and no required participant shall have the option of receiving payment of such severance and incentive pay directly in cashXXIII. c. The required contribution to the 403(b) Special Pay Plan shall be made within the timeframe described in Article X XXII Section 5 D regarding the payment of severance pay and shall be made within the timeframe described in Article X Sections 7 and 8 XXIII regarding the payment of retirement incentive pay; provided, however, that if the amount payable to the AIG 403(b) Special Pay Plan in the calendar year of retirement would exceed the maximum amount that is permitted under the applicable federal income tax law for that year, the remaining amount shall be contributed to the AIG 403(b) Special Pay Plan after the first payroll date in January of the next calendar year; and if there is any remaining amount of severance and incentive pay, the excess amount shall be paid to the participant in cash. d. A teacher who is a participant in the AIG 403(b) Special Pay Plan shall complete a an AIG 403(b) Plan sponsor enrollment package prior to retirement; and unless and until a teacher does so, no contribution of severance pay and/or retirement incentive pay shall be made to the AIG 403(b) Special Pay Plan on behalf of the teacher, nor will teacher be paid directly in cash for severance and/or incentive pay. e. If a teacher is entitled to have a contribution paid to the AIG 403(b) Special Pay Plan and dies prior to such contribution being paid to the AIG 403(b) Plan, the contribution shall be paid to a Beneficiary of the teacher in accordance with the terms of the AIG 403(b) Special Pay Plan. In the event no beneficiary was designated by the employee, the contribution Severance Pay will be paid to the deceased’s estate. f. The Plan year of the AIG 403(b) Plan shall be the calendar year. g. The Board shall have authority to approve or disapprove After adoption of Plan Providers. The Board shall attempt to find a reputable company providing a the AIG 403(b) Plan that does not charge any administrative fees. However, if no such company can be foundPlan, any administrative fees shall be borne by the AIG 403(b) Plan participantsParticipants. 23. Any teacher who is entitled to severance pay and/or retirement incentive pay, pay who is not an eligible participant in the AIG 403(b) Special Pay Plan, Plan will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles X Section 5 XXII Sect. D and Article X Sections 7 and 8XXIII. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Service Code Section 403(b) (a “TSA”) as permitted by lawlaw and Board policy. 34. All contributions to the AIG 403(b) Plan, all deferrals to a TSA, and all check payments to teachers, shall be subject to reduction for any tax withholding or other withholding if that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the W.E.A. AATA guarantees any tax results associated with the AIG 403(b) Special Pay Plan, deferrals to a TSA, TSA or check payments made to a teacher. 45. In the event a teacher is ineligible to participate in the 403(b) Special Pay Plan and dies, the Severance Pay shall be paid to the employee’s estate.

Payment and Deferral of Severance Pay. Notwithstanding anything Eligible bargaining unit members shall participate in this Agreement or Board policy to the contrary, the Board shall adopt a Vandalia-Butler City School District Section 403b Tax Deferred 403(b) Severance Annuity Plan, hereafter referred to as the 403(b) Special Pay Plan, with terms that comply with the requirements of this Contract and the Plan Document. 1. The terms of the 403(b) Special Pay Plan are outlined in the plan document, which shall be made available upon request, and include the following:; a. Participation in All Employees who have attained the age of fifty-five (55) years or older during the calendar year of retirement and are eligible for said severance payment (including applicable retirement incentives) will be paid into the Board sponsored Employer 403(b) Special Pay Plan shall be mandatory for any teacher actively employed on or after September 1per adoption agreement dated June 28, 2017, who would be entitled to severance pay under Article X Section 5 and/or retirement incentive pay under Article X Sections 7 and 82016, and who is or will be age 50 years or older in the calendar year in which the teacher retires, or, in the case of a retired/rehired teacher, resignsas amended thereafter. b. If a retiring teacher is a required participant By participating in the 403(b) Special Pay Plan, an employer contribution shall be made on Employee will receive payment for his/her behalf under unused accumulated sick leave as calculated per this article, and any applicable retirement incentives, beginning with the official year of retirement as set by the members applicable State Retirement System. Said payment will be made up to the maximum annual IRS 415 limit, into the 403(b) Special Pay Plan in an amount equal unreduced by current federal, state, and local income taxes. Any additional monies due to the total amount of the Participant’s severance pay in accordance with Article X Section 5 and any retirement incentive pay in accordance with Article X Sections 7 and 8. Payment of such amounts under the Special Pay Plan shall Employee will be in lieu of payment of severance and incentive pay directly paid out up to the retiring Employee; and no required participant shall maximum annual IRS 415 limits each January until all monies have the option of receiving payment of such severance and incentive pay directly in cashbeen paid. c. The required contribution to the 403(b) Special Pay Plan shall be made within the timeframe described in Article X Section 5 regarding the payment of severance pay and shall be made within the timeframe described in Article X Sections 7 and 8 regarding the payment of retirement incentive pay; provided, however, that if the amount payable to the 403(b) Special Pay Plan in the calendar year of retirement would exceed the maximum amount that is permitted under the applicable federal income tax law for that year, the remaining amount shall be contributed to the 403(b) Special Pay Plan after the first payroll date in January of the next calendar year; and if there is any remaining amount of severance and incentive pay, the excess amount shall be paid to the participant in cash. d. A teacher member who is a participant in the 403(b) Special Pay Plan shall complete a sponsor enrollment package prior to retirement; and unless and until a teacher member does so, no contribution of severance pay and/or retirement incentive pay payment shall be made to the 403(b) Special Pay Plan on behalf of the teacher, nor will teacher be paid directly in cash for severance and/or incentive paymember. e. If a teacher is entitled to have a contribution paid to the 403(b) Special Pay Plan and dies prior to such contribution being paid to the Plan, the contribution shall be paid to a Beneficiary of the teacher in accordance with the terms of the 403(b) Special Pay Plan. In the event no beneficiary was designated by the employee, the contribution will be paid to the deceased’s estate. f. d. The Plan year shall be the calendar year. g. The Board shall have authority to approve or disapprove of Plan Providers. The Board shall attempt to find a reputable company providing a 403(b) Plan that does not charge any administrative fees. However, if no such company can be found, any administrative fees shall be borne by the 403(b) Plan participants. 2. Any teacher who is entitled to severance pay and/or retirement incentive pay, who is not an eligible participant in the 403(b) Special Pay Plan, will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles X Section 5 and Article X Sections 7 and 8. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Service Code Section 403(b) (a “TSA”) as permitted by law. 3. All contributions to the Plan, all deferrals to a TSA, and all check payments to teachersmembers, shall be subject to reduction for any tax withholding or other withholding if required by law. Neither the Board nor the W.E.A. Vandalia Xxxxxx Education Association guarantees any tax results associated with the 403(b) Special Pay Plan, deferrals to a TSA, or check payments made to a teachermember. 43. In the event a teacher is ineligible to participate in bargaining unit member dies from the 403(b) Special Pay Plan time of applying for retirement and diesthe severance payment being made, the Severance Pay shall be paid to the employee’s estate.