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

Payment and Deferral of Severance Pay. A. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a single source “403(b) Annuity Plan for Government Employees, Special Pay Plan” Document with terms that comply with the requirements of this Article. The provisions of this agreement shall be subject to the 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). B. The terms of the aforementioned 403(b) Plan shall include the following: 1. Participation in the Plan shall be mandatory for any teacher actively employed on or after September 1, 2005, who would be entitled to severance pay under Article 9.4, who is or will be age 55 years or older in the calendar year in which the teacher retires, or, in the case of a retired/ rehired teacher, resigns. 2. If a retiring teacher is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article 9.4 provided that such is payable no later than the last day of the fifth calendar year following the calendar year of the teacher’s termination of employment. 3. The required contribution to the 403(b) Plan shall be made within the timeframe described in Article 9.4 regarding the payment of severance pay. 4. To the extent that the contribution of severance pay under the 403(b) Plan in any calendar year exceeds 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) Plan in January in subsequent calendar years up to the maximum amount allowable under the federal income tax law for such years (e.g. under IRC Section 415(c)), for up to a maximum of five (5) calendar years after the calendar year of the teacher’s retirement; and if there is any remaining amount of severance pay, the excess amount shall be paid to the retired teacher in cash. 5. A teacher who is a participant in the 403(b) Plan shall complete a 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 403(b) Plan on behalf of the teacher. 6. If a teacher is entitled to have a contribution paid to the 403(b) Plan and dies prior to such contribution being paid to them, the contribution shall be paid to the estate of the teacher. 7. The Plan year of the 403(b) Plan shall be the calendar year. 8. After adoption of the 403(b) Plan, any administrative fees shall be borne by the Board of Education. C. Any teacher who is entitled to severance pay and/or retirement incentive pay who is not an eligible participant in the 403(b) Plan will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles 9.4. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b) (a “TSA”) as permitted by law and Board policy. D. All contributions to the 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 that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the A-Tech guarantees any tax results associated with the 403(b) Plan, deferrals to a TSA or check payments made to a teacher.

Payment and Deferral of Severance Pay. A. 1. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a single source “the Tax Deferred 403(b) Annuity Plan for Government Employees, Special Pay Plan” Employees‖ Document 403(b) with terms that comply with the requirements of this Article. The provisions of this agreement shall be subject to the 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)Paragraph. B. 2. The terms of the aforementioned 403(b) Plan shall include the following: 1. a. Participation in the 403(b) Plan shall be mandatory for any teacher actively employed on or after September 1, 20052004, who would be entitled to severance pay under Article 9.4, XXI Section D who is or will be age 55 years or older in the calendar year in which the teacher retires, or, in the case of a retired/ retired / rehired teacher, resigns. 2. b. If a retiring teacher is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article 9.4 provided that such is payable no later than the last day of the fifth calendar year following the calendar year of the teacher’s termination of employment.XXI Section D. 3. c. The required contribution to the 403(b) Plan shall be made within the timeframe described in Article 9.4 XXI Section D regarding the payment of severance pay. 4. To ; provided, however, that if the extent that the contribution of severance pay under amount payable to the 403(b) Plan in any the calendar year exceeds 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) Plan after the first payroll date in January in subsequent calendar years up to the maximum amount allowable under the federal income tax law for such years (e.g. under IRC Section 415(c)), for up to a maximum of five (5) calendar years after the calendar year of the teacher’s retirement; and if there is any remaining amount of severance pay, the excess amount shall be paid to the retired teacher in cashnext calendar year. 5. d. A teacher who is a participant in the 403(b403 (b) Plan shall complete a 403(b403 (b) Plan sponsor enrollment package prior to retirement; and unless and until a teacher does so, no contribution of severance pay and/or and / or retirement incentive pay shall be made to the 403(b403 (b) Plan on behalf of the teacherPlan. 6. e. If a teacher is entitled to have a contribution paid to the 403(b403 (b) Plan and dies prior to such contribution being paid to themthe 403 (b) Plan, the contribution shall be paid to the estate a Beneficiary of the teacherteacher in accordance with the terms of the 403 (b) Plan. 7. f. The Plan year of the 403(b403 (b) Plan shall be the calendar year. 8. g. After adoption of the 403(b403 (b) Plan, any administrative fees shall be borne by the Board of Education403 (b) Plan Participants. C. 3. Any teacher who is entitled to severance pay and/or retirement incentive pay who is not an eligible participant in the 403(b403 (b) Plan will continue to be eligible for any and all severance payments and/or and / or retirement incentive payments in accordance with Articles 9.4. Article XXI Section D. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b403 (b) (a “TSA”―TSA‖) as permitted by law and Board policy. D. 4. All contributions to the 403(b403 (b) Plan, all deferrals to a TSA, and all check payments payment to teachers, shall be subject to reduction for any tax withholding or other withholding that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the A-Tech JATA guarantees any tax results associated with the 403(b403 (b) Plan, deferrals to a TSA or check payments payment made to a teacher.

Payment and Deferral of Severance Pay. A. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a single source “403(b) Annuity Plan for Government Employees, Special Pay Plan” Document with terms that comply with the requirements of this Article. The provisions of this agreement shall be subject to the 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). B. The terms of the aforementioned 403(b) Plan shall include the following: 1. Participation in the Plan shall be mandatory for any teacher actively employed on or after September 1, 2005, who would be entitled to severance pay under Article 9.4, who is or will be age 55 years or older in the calendar year in which the teacher retires, or, in the case of a retired/ rehired teacher, resigns. 2. If a retiring teacher is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article 9.4 provided that such is payable no later than the last day of the fifth calendar year following the calendar year of the teacher’s termination of employment. 3. The required contribution to the 403(b) Plan shall be made within the timeframe described in Article 9.4 regarding the payment of severance pay. 4. To the extent that the contribution of severance pay under the 403(b) Plan in any calendar year exceeds 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) Plan in January in subsequent calendar years up to the maximum amount allowable under the federal income tax law for such years (e.g. under IRC Section 415(c)), for up to a maximum of five (5) calendar years after the calendar year of the teacher’s retirement; and if there is any remaining amount of severance pay, the excess amount shall be paid to the retired teacher in cash. 5. A teacher who is a participant in the 403(b) Plan shall complete a 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 403(b) Plan on behalf of the teacher. 6. If a teacher is entitled to have a contribution paid to the 403(b) Plan and dies prior to such contribution being paid to them, the contribution shall be paid to the estate of the teacher. 7. The Plan year of the 403(b) Plan shall be the calendar year. 8. After adoption of the 403(b) Plan, any administrative fees shall be borne by the Board of Education. C. Any teacher who is entitled to severance pay and/or retirement incentive pay who is not an eligible participant in the 403(b) Plan will continue to be eligible for any and all severance payments and/or retirement incentive payments in accordance with Articles 9.4. The teacher may elect to defer such payments to a tax-tax- sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b) (a “TSA”) as permitted by law and Board policy. D. All contributions to the 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 that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the A-Tech guarantees any tax results associated with the 403(b) Plan, deferrals to a TSA or check payments made to a teacher.

Payment and Deferral of Severance Pay. A. 1. Notwithstanding anything in this Agreement or Board policy to the contrary, the Board shall adopt a single source “the Tax Deferred 403(b) Annuity Plan for Government Employees, Special Pay Plan” Document 403(b) with terms that comply with the requirements of this Article. The provisions of this agreement shall be subject to the 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)Paragraph. B. 2. The terms of the aforementioned 403(b) Plan shall include the following: 1. a. Participation in the 403(b) Plan shall be mandatory for any teacher actively employed on or after September 1, 20052004, who would be entitled to severance pay under Article 9.4, XXI Section D who is or will be age 55 years or older in the calendar year in which the teacher retires, or, in the case of a retired/ retired / rehired teacher, resigns. 2. b. If a retiring teacher is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the total amount of the Participant’s severance pay in accordance with Article 9.4 provided that such is payable no later than the last day of the fifth calendar year following the calendar year of the teacher’s termination of employment.XXI Section D. 3. c. The required contribution to the 403(b) Plan shall be made within the timeframe described in Article 9.4 XXI Section D regarding the payment of severance pay. 4. To ; provided, however, that if the extent that the contribution of severance pay under amount payable to the 403(b) Plan in any the calendar year exceeds 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) Plan after the first payroll date in January in subsequent calendar years up to the maximum amount allowable under the federal income tax law for such years (e.g. under IRC Section 415(c)), for up to a maximum of five (5) calendar years after the calendar year of the teacher’s retirement; and if there is any remaining amount of severance pay, the excess amount shall be paid to the retired teacher in cashnext calendar year. 5. d. A teacher who is a participant in the 403(b403 (b) Plan shall complete a 403(b403 (b) Plan sponsor enrollment package prior to retirement; and unless and until a teacher does so, no contribution of severance pay and/or and / or retirement incentive pay shall be made to the 403(b403 (b) Plan on behalf of the teacherPlan. 6. e. If a teacher is entitled to have a contribution paid to the 403(b403 (b) Plan and dies prior to such contribution being paid to themthe 403 (b) Plan, the contribution shall be paid to the estate a Beneficiary of the teacherteacher in accordance with the terms of the 403 (b) Plan. 7. f. The Plan year of the 403(b403 (b) Plan shall be the calendar year. 8. g. After adoption of the 403(b403 (b) Plan, any administrative fees shall be borne by the Board of Education403 (b) Plan Participants. C. 3. Any teacher who is entitled to severance pay and/or retirement incentive pay who is not an eligible participant in the 403(b403 (b) Plan will continue to be eligible for any and all severance payments and/or and / or retirement incentive payments in accordance with Articles 9.4. Article XXI Section D. The teacher may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b403 (b) (a “TSA”) as permitted by law and Board policy. D. 4. All contributions to the 403(b403 (b) Plan, all deferrals to a TSA, and all check payments payment to teachers, shall be subject to reduction for any tax withholding or other withholding that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the A-Tech JATA guarantees any tax results associated with the 403(b403 (b) Plan, deferrals to a TSA or check payments payment made to a teacher.