Common use of Severance Plan Clause in Contracts

Severance Plan. The Board agrees to establish and maintain a qualified Annuity Plan (hereinafter referred to as the Severance Plan) for all certified employees on a regular teaching contract covered under this collective bargaining agreement. The Severance Plan shall be available for all certified employees. The Severance Plan contributions shall continue each contract year. The contribution made to the Severance Plan by the Board will be one percent (1%) of the employee’s salary. Effective July 1, 2000, the maximum number of accumulated sick leave days is one hundred thirty (130). Unused sick leave days acquired after July 1, 2004, and remaining at the end of each subsequent school year above the 130-day maximum shall be paid on the second pay date after the last student attendance day in the amount of seventy- five dollars ($75) for each day. After fourteen (14) years of service in this school corporation, a teacher may receive separation pay. A teacher shall receive the greater of seventy five dollars ($75) per day for each unused sick day to a maximum of 130 days, or two hundred dollars ($200) per year of service within the Peru Community Schools upon separation. The chosen amount will be paid with equal payments to be made over four years. The corresponding dollar value for these accumulated days shall be offset by the Board contribution to the Severance Plan. This offset shall continue until such time as a certified employee receives a greater return from the Severance Plan than he or she would have received based on the valuation of these days on July 1, 2000. Employer profit Sharing Money (hereinafter referred to as ERPS) and Employer Match (hereinafter referred to as ERMAT) amounts are used to calculate the amount to be distributed. Total contributions to American Funds, Hartford and VALIC#3 that were made over the years are the board contribution amount offset for the Severance plan. All eligible employees participating in the Severance Plan, including the employer match, shall have a six-year graded vesting schedule as follows: Years of service with Peru Community Schools Vested 1 20% 2 40% 3 60% 4 80% 5 100% The Severance Plan shall be valued in the amount of the employer contributions effective the last contracted day of employment for each eligible employee.