Common use of Salary Reduction Clause in Contracts

Salary Reduction. Participants shall be entitled to select (by completing the Employee's Selection Form) any one or a combination of benefits as provided. Any teacher failing to select benefits, or selecting benefits that cost less than the employer- allocated amount, shall have such funds automatically paid in cash and subject to applicable state and federal taxes. Benefit costs exceeding the amount allocated under Section 1 can include up to $1,666.66 per month salary reduction or a maximum of $20,000 per year.