Common use of Severance Pay Deferral Plan Clause in Contracts

Severance Pay Deferral Plan. A. The Board shall adopt a Severance Pay Deferral Plan that will provide for the deferral of an eligible employee’s “Net Severance Pay” (as defined below) 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”). For purposes of this Agreement, a retiring teacher’s “Net Severance Pay” is equal to (i) the teacher’s severance pay under Section 14.05 of this Agreement. Notwithstanding anything in this Agreement or Board policy to the contrary, the terms of the Severance Pay Deferral Plan (the “403(b) Plan”) shall comply with the requirements of this Section 14.06.

Severance Pay Deferral Plan. A. 1. The Board shall adopt a Severance Pay Deferral Plan that will provide for the deferral of an eligible employee’s “Net Severance Pay” (as defined below) 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”). For purposes of this Agreement, a retiring teacher’s “Net Severance Pay” is equal to (i) the teacher’s severance pay under Section 14.05 of this Agreement. Notwithstanding anything in this Agreement or Board policy to the contrary, the terms of the Severance Pay Deferral Plan (the “403(b) Plan”) shall comply with the requirements of this Section 14.06.