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. 2. Participation in the 403(b) Plan shall be mandatory for any teacher who meets all of the following requirements: a. The teacher is employed after April 30, 2005. b. The teacher retires and is thereby entitled to Severance Pay pursuant to the provisions of Section 7.02 and/or the Early Retirement Incentive Plan of 2005. c. The teacher’s last day of employment is in the calendar year in which he/she will attain age 55. 3. The terms of the 403(b) Plan shall include the following: a. If a retiring teacher is a participant in the 403(b) Plan, in lieu of the teacher receiving a cash payment of his or her Severance Pay and/or the ERIP of 2005, an employer contribution shall be made on his or her behalf under the 403(b) Plan, in an amount equal to his or her Severance Pay and/or the ERIP of 2005. b. If a retiring teacher is entitled to severance pay under Section 7.02 or a payment under the ERIP of 2005, but is not required to be a participant in the 403(b) Plan, the retiring teacher’s severance pay and any payment under the ERIP of 2005 shall be payable to the retiring teacher in cash. c. In the calendar year of retirement, or in any other calendar year, the total amount of severance pay that may be paid to a TSA under the 403(b) Plan shall not exceed the maximum contribution amount allowable under the federal income tax law for TSAs that are intended to be tax qualified under IRC Section 403(b). d. To the extent that a member’s Severance Pay exceeds the maximum contribution allowable under the 403(b) Plan for any calendar year, the excess amount shall be payable to the 403(b) Plan in the following January, up to the maximum 403(b) Plan limits for that calendar year. If there is any remaining excess, it shall be paid in cash to the retiring member. e. A member who is participant in the 403(b) Plan shall designate the TSA provider who is to receive the contribution under the 403(b) Plan; provided, however, that any such provider must be on the approved list of TSA providers that is in effect at the time of the employee’s retirement; and the Board shall continue to have authority to continue to approve or disapprove of TSA contract providers. No contributions shall be paid by the Board to a TSA provider unless, and until, the retiring teacher has completed any TSA provider enrollment forms or other legal documents that will establish the TSA. TSAs shall be individual contracts owned by the 403(b) Plan participants. However, the Board, in its sole discretion, may offer one or more group 403(b) Plan contracts to participants. f. If a member is entitled to have a contribution paid to the 403(b) Plan and dies prior to such contribution being paid to the 403(b) Plan, the contribution shall be paid to the 403(b) Plan provider and shall be paid to a Beneficiary of the member in accordance with the terms of the 403(b) Plan provider’s contract. g. The Treasurer shall be the administrator of the 403(b) Plan, unless the Board delegates administration to a third party administrator. The 403(b) Plan administrator shall be permitted to administer, interpret and operate the plan as the Plan administrator shall deem necessary for compliance with IRC Section 403(b) and applicable regulations (including proposed regulations) and rulings thereunder. 4. All contributions to 403(b) Contracts shall be subject to reduction for any required tax withholding or any other withholding that the Treasurer, in his or her sole discretion, determines is required by law. Neither the Board, nor the Xxxxxx Education Association, guarantee any investment or tax results associated with the 403(b) Plan or elective deferrals that are made by a retiring teacher to a 403(b) Contract.

Severance Pay Deferral Plan. 1. Notwithstanding anything to The Board shall adopt a Severance Pay Deferral Plan that will provide for the contrary in the Collective Bargaining Agreement between the Board and the WEA deferral of an eligible employee’s “Net Severance Pay” (the “Agreement”as defined below) or Board policy, in accordance with the terms of this Section and any related provisions of a plan document subsequently adopted by having it mandatorily paid by the Board directly into an annuity contract or custodial account agreement that is designed 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 “Net Severance Pay” is equal to (i) the teacher’s severance pay under Section 7.02 14.05 of the Collective Bargaining Agreement between the Board and the WEA (the “this 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 Severance Pay Deferral Plan (the “403(b) Plan Plan”) shall comply with the requirements of this Section 7.0514.06. 2. Participation Although any retiree may participate in the Severance Pay Deferral Plan, participation in the 403(b) Plan shall be mandatory for any teacher who meets all of the following requirements: a. The teacher is employed hired after April 30August 1, 2005. b. The teacher retires and is thereby entitled to Net Severance Pay pursuant to the provisions of Section 7.02 and/or the Early Retirement Incentive Plan Sections 14.05 of 2005. c. The teacher’s last day of employment is in the calendar year in which he/she will attain age 55this Agreement. 3. The terms of the 403(b) Plan shall include the following: a. If a retiring teacher is a participant in the 403(b) Plan, in lieu of the teacher receiving a cash payment of on his or her Net Severance Pay and/or the ERIP of 2005Pay, an employer contribution shall be made on his or her behalf under the 403(b) Plan, in an amount equal to his or her Net Severance Pay and/or the ERIP of 2005Pay. b. If a retiring teacher is entitled Payments shall be made to severance pay under Section 7.02 or a payment under the ERIP of 2005, but is not required to be a participant in the 403(b) PlanPlan within the time frames described in Section 14.05 of this Agreement regarding the payment of severance pay; provided, however, if the retiring teacher’s severance pay and payment amount for any payment under the ERIP of 2005 shall be payable to the retiring teacher in cash. c. In the calendar year of retirement, or in any other calendar year, exceeds the total maximum amount of severance pay that may be paid to a TSA under the 403(b) Plan shall not exceed the maximum contribution amount allowable under the federal income tax law for TSAs that are intended to be tax qualified under IRC Section 403(b). d. To the extent that a member’s Severance Pay exceeds the maximum contribution allowable under into the 403(b) Plan for any calendar such year, the excess amount shall be payable carried over to the subsequent year and then paid into the 403(b) Plan in the following January, up to the maximum 403(b) Plan limits for that calendar yearPlan. If there is still any excess severance remaining excessafter the contribution in the next calendar year, it shall will be paid in cash to the retiring memberretired employee. e. A member who is participant in the 403(b) Plan shall designate the TSA provider who is to receive the contribution under the 403(b) Plan; provided, however, that any such provider must be on the approved list of TSA providers that is in effect at the time of the employee’s retirement; and the Board shall continue to have authority to continue to approve or disapprove of TSA contract providers. No contributions shall be paid by the Board to a TSA provider unless, and until, the retiring teacher has completed any TSA provider enrollment forms or other legal documents that will establish the TSA. TSAs shall be individual contracts owned by the 403(b) Plan participants. However, the Board, in its sole discretion, may offer one or more group 403(b) Plan contracts to participants. f. If a member is entitled to have a contribution paid to the 403(b) Plan and dies prior to such contribution being paid to the 403(b) Plan, the contribution shall be paid to the 403(b) Plan provider and shall be paid to a Beneficiary of the member in accordance with the terms of the 403(b) Plan provider’s contract. g. c. The Treasurer shall be the administrator of the 403(b) Plan, unless the Board delegates administration to a third party administrator. The 403(b) Plan administrator shall be permitted to administer, interpret and operate the plan as the Plan administrator shall deem necessary for compliance with IRC Section 403(b) and applicable regulations (including proposed regulations) and rulings thereunderthere under. 4. All contributions to 403(b) Contracts shall be subject to reduction for any required tax withholding or any other withholding that the Treasurer, in his or her sole discretion, determines is required by law. Neither the Board, nor the Xxxxxx Education Association, guarantee any investment or tax results associated with the 403(b) Plan or elective deferrals that are made by a retiring teacher to a 403(b) Contract.

Severance Pay Deferral Plan. 1. Notwithstanding anything to A. The Board shall adopt a Severance Pay Deferral Plan that will provide for the contrary in the Collective Bargaining Agreement between the Board and the WEA deferral of an eligible employee’s “Net Severance Pay” (the “Agreement”as defined below) or Board policy, in accordance with the terms of this Section and any related provisions of a plan document subsequently adopted by having it mandatorily paid by the Board directly into an annuity contract or custodial account agreement that is designed 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 “Net Severance Pay” is equal to (i) the teacher’s severance pay under Section 7.02 14.05 of the Collective Bargaining Agreement between the Board and the WEA (the “this 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 Severance Pay Deferral Plan (the “403(b) Plan Plan”) shall comply with the requirements of this Section 7.0514.06. 2. Participation B. Although any retiree may participate in the Severance Pay Deferral Plan, participation in the 403(b) Plan shall be mandatory for any teacher who meets all of the following requirements: a. 1. The teacher is employed hired after April 30August 1, 2005. b. 2. The teacher retires and is thereby entitled to Net Severance Pay pursuant to the provisions of Section 7.02 and/or the Early Retirement Incentive Plan Sections 14.05 of 2005this Agreement. c. The teacher’s last day of employment is in the calendar year in which he/she will attain age 55. 3. C. The terms of the 403(b) Plan shall include the following: a. 1. If a retiring teacher is a participant in the 403(b) Plan, in lieu of the teacher receiving a cash payment of on his or her Net Severance Pay and/or the ERIP of 2005Pay, an employer contribution shall be made on his or her behalf under the 403(b) Plan, in an amount equal to his or her Net Severance Pay and/or the ERIP of 2005Pay. b. If a retiring teacher is entitled 2. Payments shall be made to severance pay under Section 7.02 or a payment under the ERIP of 2005, but is not required to be a participant in the 403(b) PlanPlan within the time frames described in Section 14.05 of this Agreement regarding the payment of severance pay; provided, however, if the retiring teacher’s severance pay and payment amount for any payment under the ERIP of 2005 shall be payable to the retiring teacher in cash. c. In the calendar year of retirement, or in any other calendar year, exceeds the total maximum amount of severance pay that may be paid to a TSA under the 403(b) Plan shall not exceed the maximum contribution amount allowable under the federal income tax law for TSAs that are intended to be tax qualified under IRC Section 403(b). d. To the extent that a member’s Severance Pay exceeds the maximum contribution allowable under into the 403(b) Plan for any calendar such year, the excess amount shall be payable carried over to the subsequent year and then paid into the 403(b) Plan in the following January, up to the maximum 403(b) Plan limits for that calendar yearPlan. If there is still any excess severance remaining excessafter the contribution in the next calendar year, it shall will be paid in cash to the retiring memberretired employee. e. A member who is participant in the 403(b) Plan shall designate the TSA provider who is to receive the contribution under the 403(b) Plan; provided, however, that any such provider must be on the approved list of TSA providers that is in effect at the time of the employee’s retirement; and the Board shall continue to have authority to continue to approve or disapprove of TSA contract providers3. No contributions shall be paid by the Board to a TSA provider unless, and until, the retiring teacher has completed any TSA provider enrollment forms or other legal documents that will establish the TSA. TSAs shall be individual contracts owned by the 403(b) Plan participants. However, the Board, in its sole discretion, may offer one or more group 403(b) Plan contracts to participants. f. If a member is entitled to have a contribution paid to the 403(b) Plan and dies prior to such contribution being paid to the 403(b) Plan, the contribution shall be paid to the 403(b) Plan provider and shall be paid to a Beneficiary of the member in accordance with the terms of the 403(b) Plan provider’s contract. g. The Treasurer shall be the administrator of the 403(b) Plan, unless the Board delegates administration to a third party administrator. The 403(b) Plan administrator shall be permitted to administer, interpret and operate the plan as the Plan administrator shall deem necessary for compliance with IRC Section 403(b) and applicable regulations (including proposed regulations) and rulings thereunderthere under. 4. All contributions to 403(b) Contracts shall be subject to reduction for any required tax withholding or any other withholding that the Treasurer, D. A teacher who is a participant in his or her sole discretion, determines is required by law. Neither the Board, nor the Xxxxxx Education Association, guarantee any investment or tax results associated with the 403(b) Plan shall designate as the recipient of the employer contribution of Net Severance Pay, an annuity company or elective deferrals custodial account that is designed to comply with the requirements of IRC Section (403(b) (a “403(b) Contract”). The teacher may select the 403(b) Contract from any provider whose 403(b) Contracts are made available to employees of the School District, pursuant to applicable Board policies and procedures that are made in effect at the time of the employee’s retirement. No contributions shall be paid by a retiring teacher the Board to a 403(b) Contract.Contract provider