Common use of Severance Pay Deferral Plan Clause in Contracts

Severance Pay Deferral Plan. 1. Notwithstanding anything to the contrary in the Collective Bargaining Agreement between the Board and the WEA (the “Agreement”) or Board policy, in accordance with the terms of this Section and any related provisions of a plan document subsequently adopted by the Board to comply with the requirements of Section 403(b) of the Internal Revenue Code (the “IRC”), certain retiring employees shall have their “Severance Pay” mandatorily paid into an annuity contact or custodial account that is designed to meet the tax- qualification requirements of IRC Section 403(b) (a “TSA”). Such payment shall be in lieu of the payment being made directly to the retired employee; and such payment shall eliminate all sick leave credit of the retired employee. For purposes of this Section, this arrangement is referred to as the 403(b) Plan. For the purposes of this Agreement, a retiring teacher’s “Severance Pay” is the teacher’s severance pay under Section 7.02 of the Collective Bargaining Agreement between the Board and the WEA (the “Agreement”) along with any payments under the Early Retirement Incentive Plan of 2005. Notwithstanding anything in this Agreement or Board policy to the contrary, the terms of the 403(b) Plan shall comply with the requirements of this Section 7.05.