Vesting Language. 2.1 After June 1, 2005, all future employer 403(b) matching contributions shall be subject to the following vesting schedule (edited for plain language) Year 1 0% Year 2 0% Year 3 50% Year 4 50% Year 5 100%
2.2 All employer 403(b) matching contributions made prior to the June 1, 2005, effective date shall remain 100% vested at all times.
2.3 The sole administrator of the 403(b) plan shall be the administrator of the tax-sheltered annuity program including investments from school employees as well as the matching funds contributed by the school employer.
2.4 School employees will have the option of continuing to invest their dollars in tax-sheltered annuities for which money is already being deducted from the employee’s salary or the tax-sheltered annuity offered by the sole administrator.
2.5 Investments made by the employee and the employer shall remain in the tax-sheltered annuity until a qualifying event occurs making it possible for the individual to withdraw or transfer funds from the 403(b) vehicle.
2.6 Once contributions are made by the employee and the employer on behalf of the employee, all assets of the accounts become the property of the employee and in the event of death, his/her estate. This applies per the vesting schedule.
2.7 The parties agree that the tax-sheltered annuity matching funds program is to replace the current early retirement benefit that is found in this contract. The early retirement benefit will remain in effect until such time as the individual employee receives a greater return from the school employer’s contribution to the tax-sheltered annuity program than he/she would receive under the early retirement benefit. The tax-sheltered annuity program contribution by the school employer will be counted as an offset to the amount of money that the school employee would have received had he/she retired under the current early retirement benefit.
2.8 The parties’ respective bargaining teams shall be empowered to act as the 403(b) Joint Steering Committee. The Committee shall have the authority to establish an IRS qualified plan, provide training and information to the participants, and any other function to implement this subsection.
