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

Payment and Deferral of Severance Pay. Notwithstanding anything in Board policy to the contrary, in accordance with the terms of Section 3.4(a) of the of the Polaris Career Center Section 403(b) Plan (the “403(b) Plan”), retiring teachers shall have the total amount that otherwise would be payable to them as “Severance Pay” (as defined therein) split and paid 60% into an HRA and 40% into an annuity contract or custodial account that is a “Plan Contract” under the 403(b) Plan. Payment of such amounts under Section 3.4(a) shall be in lieu of payment of such amounts directly to the retiring Employee; and no retiring Employee shall have the option of receiving payment of such amounts directly in cash. This arrangement shall be referred to herein as the PEA Severance Pay Deferral Program.

Payment and Deferral of Severance Pay. Notwithstanding anything in Board policy to the contrary, in accordance with the terms of Section 3.4(a) of the of the Polaris Career Center Section 403(b) Plan (the “403(b) Plan”), certain retiring teachers shall have the total amount that otherwise would be payable to them as “Severance Pay” (as defined therein) split and mandatorily paid 60% into an HRA and 40% into an annuity contract or custodial account that is a “Plan Contract” under the 403(b) Plan. Plan Payment of such amounts under Section 3.4(a) shall be in lieu of payment of such amounts directly to the retiring Employee; and no retiring Employee shall have the option of receiving payment of such amounts directly in cash. This arrangement shall be referred to herein as the PEA Severance Pay Deferral Program.