Supplemental Insurance Payments. The Board will make an annual payment in the amount of $1,750 to an eligible teacher with no spouse or eligible dependent(s) or $3,000 for any other eligible teacher who is enrolled in the health insurance plan provided by MPSERS. If a husband and wife are both eligible for these supplemental insurance benefits, the Board will make an annual contribution of $1,750 for each (or a total of $3,500). During the first five (5) years after a teacher’s retirement, the annual contribution (if applicable) will be in the form of a non-elective employer contribution to the teacher’s 403(b) account. No cash option will be allowed. Beginning the sixth (6th) year after a teacher’s retirement, the annual contribution (if applicable) will be made to a Voluntary Employees Beneficiary Account (“VEBA”). To the extent the contributions to a teacher’s 403(b) account are not eligible for the tax benefits permitted by law, the contribution will be made to a VEBA, and vice versa. A teacher shall have up to five (5) years after retirement to enroll in the insurance plan provided by MPSERS to be eligible for this benefit. The Board’s obligation to make annual contributions shall not commence until an eligible teacher is enrolled in the insurance plan provided by MPSERS and shall terminate if the teacher discontinues enrollment, dies or after five (5) years of contributions by the Board.
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