Common use of Retirement Severance Benefit Clause in Contracts

Retirement Severance Benefit. A. Accumulated Sick Leave 1. As of January 31, 2006, any days over 184 which have been accumulated by an individual teacher shall be deposited into a personal sick leave bank for that teacher. These days may be used while actively employed, if needed, after all allowable accumulated sick leave has been exhausted. These days must be used prior to receiving days from the M-GT A Sick Leave Bank. These personal sick leave bank days will be purchased as part of the last year’s employment buydown from the general fund. This last sentence is included for informational purposes only and was not bargained. 2. In the last year of employment, the Board will buy any accumulation of days between one (1) and one hundred thirty-six (136) at the rate of thirty-five dollars ($35.00) per day. Of this amount, as provided in the first sentence, it will be paid directly as compensation up to the ISTRF maximum for inclusion of the severance benefits as salary. If there is any excess in the calculated amount beyond the maximum, then the excess amount shall be deposited into the retiring teacher’s 401(a) account. The corporation shall make payment to the vendor by August 1st and will notify the teacher if days have been added and instruct teacher how to set up account if they have no 401(a) account at that time. (This language was not bargained, but is for informational purposes only.) 3. To be eligible for the accumulated sick leave benefit described herein, the teacher must give notice of retirement by February 1 of the teacher’s last year of employment with the School Corporation. The Superintendent is permitted to waive the February 1 deadline in his sole discretion if exceptional circumstances exist justifying a waiver. 4. To be eligible for the accumulated sick leave benefit described herein, a teacher must either: (a) have 10 years of teaching experience working for the Xxxxxx-Xxxxx School District and be at least age 55 at the time retirement from the School District; or (b) have 25 years of teaching experience working for the Xxxxxx-Xxxxx School District and be at least age 50 at the time of retirement from the School District. B. 401 (a) /403(b) Matching Annuity Plan. Each teacher shall be eligible for the Section 401 (a)/403(b) Matching Annuity Benefit describes in this section. 1. All teachers shall have the option of investing in the 401 (a) /403(b) plan up to the maximum allowable under Federal Law. The Board will match such teacher contributions on a dollar for dollar basis in a Section 401 (a) Plan account up to two percent (2%) of the teacher's Gross Pay salary. 2. The Board shall deposit its contributions into an individual account for each teacher enrolled in the 401 (a) /403(b) program chosen by the Board and the Association. Such deposits shall be made on a monthly basis. 3. Teachers will have the option of investing their dollars in the program chosen by the Board and the Association, or continuing to invest their dollars in tax deferred annuities for which money is already being deducted from the teacher's salary, if any. 4. Each eligible teacher shall be immediately 100% vested in his or her salary reduction contribution and the Board's matching contribution at the time of the contribution. 5. The Board will allow a teacher to change the amount of contribution twice annually between August 1st and September 15th and again at the time of contract ratification. A teacher may request an additional change in the amount of their contribution by making application to the Superintendent.

Retirement Severance Benefit. A. Accumulated Sick Leave 1. As of January 31, 2006, any days over 184 which have been accumulated by an individual teacher shall be deposited into a personal sick leave bank for that teacher. These days may be used while actively employed, if needed, after all allowable accumulated sick leave has been exhausted. These days must be used prior to receiving days from the M-GT A Sick Leave Bank. These personal sick leave bank days will be purchased as part of the last year’s employment buydown from the general fund. This last sentence is included for informational purposes only and was not bargained. 2. In the last year of employment, the Board will buy any accumulation of days between one (1) and one hundred thirty-six (136) at the rate of thirty-five dollars ($35.00) per day. Of this amount, as provided in the first sentence, it will be paid directly as compensation through direct deposit up to the ISTRF maximum for inclusion of the severance benefits as salary. If there is any excess in the calculated amount beyond the ISTRF maximum, then the excess amount shall be deposited into the retiring teacher’s 401(a) account. The corporation shall make payment to the vendor by August 1st and will notify the teacher if days have been added and instruct teacher how to set up account if they have no 401(a) account at that time. (This language was not bargained, but is for informational purposes only.) 3. To be eligible for the accumulated sick leave benefit described herein, the teacher must give notice of retirement by February 1 of the teacher’s last year of employment with the School Corporation. The Superintendent is permitted to waive the February 1 deadline in his sole discretion if exceptional circumstances exist justifying a waiver. 4. To be eligible for the accumulated sick leave benefit described herein, a teacher must either: (a) have 10 years of teaching experience working for the Xxxxxx-Xxxxx School District and be at least age 55 at the time retirement from the School District; or (b) have 25 years of teaching experience working for the Xxxxxx-Xxxxx School District and be at least age 50 at the time of retirement from the School District. B. 401 (a) /403(b) Matching Annuity Plan. Each teacher shall be eligible for the Section 401 (a)/403(b) Matching Annuity Benefit describes in this section. 1. All teachers shall have the option of investing in the 401 (a) /403(b403(b) plan up to the maximum allowable under Federal Law. The Board will match such teacher contributions on a dollar for dollar basis in a Section 401 (a403(b) Plan account up to two percent (2%) of the teacher's Gross Pay salary. 2. The Board shall deposit its contributions into an individual account for each teacher enrolled in the 401 (a) /403(b) program chosen by the Board and the Association. Such deposits shall be made on a monthly basis. 3. Teachers will have the option of investing their dollars in the program chosen by the Board and the Association, or continuing to invest their dollars in tax deferred annuities for which money is already being deducted from the teacher's salary, if any. 4. Each eligible teacher shall be immediately 100% vested in his or her salary reduction contribution and the Board's matching contribution at the time of the contribution. 5. The Board will allow a new hire teacher to change elect the amount of contribution twice annually between August 1st and September 15th and again 15th. Any teacher can change the amount of his/her contribution at the time of contract ratification. A teacher may request an additional change in the amount of their contribution by making application to the Superintendent.