Common use of Severance Pay Deferral Plan Clause in Contracts

Severance Pay Deferral Plan. Notwithstanding anything in this Agreement or Board policy to the contrary, in accordance with the terms of this Agreement, and any related provisions of a plan document adopted by the Board to comply with the requirements of Section 403(b) of the Internal Revenue Code (the "IRC") Covered Employees (as defined below) shall have their "Severance Pay" (as defined below) mandatorily paid into an annuity contract or custodial account that is designed to meet the tax-qualification requirements of IRC Section 403(b} (a "TSA"). This arrangement shall be referred to herein as the "403(b} Plan". The terms of the 403(b) Plan shall include the following: a. Participation in the 403(b) Plan shall be mandatory for all Covered Employees. A Covered Employee is any member who meets both of the following requirements: i. The member is entitled to severance pay under Article XX(B)(1) or Article XX(B)(2), and ii. The member's last day of employment is after the calendar year the member attains age 54. b. For purposes of the 403(b) Plan, the term "Severance Pay" shall include severance pay that is a cash payment made in accordance with Article XX(B)(1) or Article XX(B)(2). c. If a retiring member is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the lesser of: i. The total amount of the Participant's Severance Pay, or ii. The maximum contribution amount allowable under the terms of the 403(b) Plan. d. The required contribution to the 403(b)Plan - shall be made at the time or times specified in Article XX(B)(I) or Article XX(B)(2) for the payment of the retired teacher's severance pay. e. To the extent that a member's severance pay exceeds the maximum amount allowable under the 403(b) Plan for the calendar year in which the payment occurs, the excess amount shall be paid in cash to the retiring teacher. f. A Covered Employee under the 403(b) Plan may designate any TSA that has been approved by the Board to do business in the School District. A Covered Employee under the 403(b) Plan shall complete the TSA enrollment forms or other enrollment forms required to establish the TSA; and unless and until a teacher does so, no contribution of Severance Pay shall be made to the 403(b) Plan on behalf of the Covered Employee. A successor company or companies may be selected at any time by mutual agreement of the Board and the Association. g. 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 in cash directly to a Beneficiary the employee designated under TSA; and if there is no such designee, it shall be paid to the estate of the deceased party. Any member who is entitled to severance pay who is not an eligible participant in the 403(b) Plan will continue to be eligible for any and all severance payments in accordance with Article XX(B)(I) or Article XX(B)(2). The member may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b) (a "TSA") as permitted by law and Board policy. All contributions to the 403(b) Plan, all deferrals to a TSA, and all check payments to members, shall be subject to reduction for any tax withholding or other withholding that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the CPEA guarantee any tax results associated with the 403(b) Plan, deferrals to a TSA or check payments made to a member.

Severance Pay Deferral Plan. Notwithstanding anything in this Agreement or Board policy to the contrary, in accordance with the terms of this Agreement, and any related provisions of a plan document adopted by the Board to comply with the requirements of Section 403(b) of the Internal Revenue Code (the "IRC") Covered Employees (as defined below) shall have their "Severance Pay" (as defined below) mandatorily paid into an annuity contract or custodial account that is designed to meet the tax-qualification requirements of IRC Section 403(b} (a "TSA"). This arrangement shall be referred to herein as the "403(b} Plan". The terms of the 403(b) Plan shall include the following: a. Participation in the 403(b) Plan shall be mandatory for all Covered Employees. A Covered Employee is any member who meets both of the following requirements: i. The member is entitled to severance pay under Article XX(B)(1XIX(B)(1) or Article XX(B)(2XIX(B)(2), and ii. The member's last day of employment is after the calendar year the member attains age 54. b. For purposes of the 403(b) Plan, the term "Severance Pay" shall include severance pay that is a cash payment made in accordance with Article XX(B)(1XIX(B)(1) or Article XX(B)(2XIX(B)(2). c. If a retiring member is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the lesser of: i. The total amount of the Participant's Severance Pay, or ii. The maximum contribution amount allowable under the terms of the 403(b) Plan. d. The required contribution to the 403(b)Plan - shall be made at the time or times specified in Article XX(B)(IXIX(B)(I) or Article XX(B)(2XIX(B)(2) for the payment of the retired teacher's severance pay. e. To the extent that a member's severance pay exceeds the maximum amount allowable under the 403(b) Plan for the calendar year in which the payment occurs, the excess amount shall be paid in cash to the retiring teacher. f. A Covered Employee under the 403(b) Plan may designate any TSA that has been approved by the Board to do business in the School District. A Covered Employee also may designate that the TSA that shall be used for the 403(b) Plan shall be the existing group annuity contract of AIG VALIC. A Covered Employee under the 403(b) Plan shall complete the TSA enrollment forms or other enrollment forms required to establish the TSA; and unless and until a teacher does so, no contribution of Severance Pay shall be made to the 403(b) Plan on behalf of the Covered Employee. A successor company or companies may be selected at any time by mutual agreement of the Board and the Association. g. 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 in cash directly to a Beneficiary the employee designated under TSA; and if there is no such designee, it shall be paid to the estate of the deceased party. Any member who is entitled to severance pay who is not an eligible participant in the 403(b) Plan will continue to be eligible for any and all severance payments in accordance with Article XX(B)(IXIX(B)(I) or Article XX(B)(2XIX(B)(2). The member may elect to defer such payments to a tax-sheltered taxsheltered annuity that is tax qualified under Internal Revenue Code Section 403(b) (a "TSA") as permitted by law and Board policy. All contributions to the 403(b) Plan, all deferrals to a TSA, and all check payments to members, shall be subject to reduction for any tax withholding or other withholding that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the CPEA guarantee any tax results associated with the 403(b) Plan, deferrals to a TSA or check payments made to a member.

Severance Pay Deferral Plan. Notwithstanding anything in this Agreement or Board policy to the contrary, in accordance with the terms of this Agreementagreement, and any related provisions of a plan document adopted by the Board to comply with the requirements of Section 403(b) of the Internal Revenue Code (the "“IRC"”) Covered Employees (as defined below) shall have their "“Severance Pay" ” (as defined below) mandatorily paid into an annuity contract or custodial account that is designed to meet the tax-qualification requirements of IRC Section 403(b} ) (a "“TSA"”). This arrangement shall be referred to herein as the "“403(b} ) Plan"”. The terms of the 403(b) Plan shall include the following: a. Participation in the 403(b) Plan shall be mandatory for all Covered Employees. A Covered Employee is any member who meets both of the following requirements: i. The member is entitled to severance pay under Article XX(B)(1XIX(B)(1) or Article XX(B)(2XIX(B)(2), and ii. The member's ’s last day of employment is after the calendar year the member attains age 54. b. For purposes of the 403(b) Plan, the term "“Severance Pay" ” shall include severance pay that is a cash payment made in accordance with Article XX(B)(1XIX(B)(1) or Article XX(B)(2XIX(B)(2). c. If a retiring member is a participant in the 403(b) Plan, an employer contribution shall be made on his/her behalf under the 403(b) Plan in an amount equal to the lesser of: i. The total amount of the Participant's ’s Severance Pay, or ii. The maximum contribution amount allowable under the terms of the 403(b) Plan. d. The required contribution to the 403(b)Plan - shall be made at the time or times specified in Article XX(B)(IXIX(B)(l) or Article XX(B)(2XIX(B)(2) for the payment of the retired teacher's ’s severance pay. e. To the extent that a member's ’s severance pay exceeds the maximum amount allowable under the 403(b) Plan for the calendar year in which the payment occurs, the excess amount shall be paid in cash to the retiring teacher. f. A Covered Employee under the 403(b) Plan may designate any TSA that has been approved by the Board to do business in the School District. A Covered Employee also may designate that the TSA that shall be used for the 403(b) Plan shall be the existing group annuity contract of AIG VALIC. A Covered Employee under the 403(b) Plan shall complete the any TSA enrollment forms or other enrollment forms required to establish the TSA; and unless and until a teacher does so, no contribution of Severance Pay shall be made to the 403(b) Plan on behalf of the Covered Employee. A successor company or companies may be selected at any time by mutual agreement of the Board and the Association. g. If a member is entitled to have a contribution of paid to the 403(b) Plan and dies prior to such contribution being paid to the 403(b) Plan, the contribution shall be paid in cash directly to a Beneficiary the employee designated under TSA; and if there is no such designee, it shall be paid to the estate of the deceased party. Any member who is entitled to severance pay who is not an eligible participant in the 403(b) Plan will continue to be eligible for any and all severance payments in accordance with Article XX(B)(IXIX(B)(l) or Article XX(B)(2XIX(B)(2). The member may elect to defer such payments to a tax-sheltered annuity that is tax qualified under Internal Revenue Code Section 403(b) (a "“TSA"”) as permitted by law and Board policy. All contributions to the 403(b) Plan, all deferrals to a TSA, and all check payments to members, shall be subject to reduction for any tax withholding or other withholding that the Treasurer, in his/her sole discretion, determines is required by law. Neither the Board nor the CPEA guarantee any tax results associated with the 403(b) Plan, deferrals to a TSA or check payments made to a member.