Common use of Voluntary Employees’ Beneficiary Association (VEBA Clause in Contracts

Voluntary Employees’ Beneficiary Association (VEBA. 1. The Board will establish a Voluntary Employees’ Beneficiary Association (VEBA), as set forth herein. The Board and the Association shall mutually agree as to what investment funds will be offed under the VEBA, not less than annually, and, to the extent more than one fund is offered, the participants shall be given the right to allocate their account balances among such funds. Participants shall be solely responsible for the performance of the investment fund(s). 2. The VEBA shall provide for the following: a. The VEBA vendor and benefit option shall be selected by mutual agreement between the Board and the Association. b. All amounts contributed shall be allocated to individual accounts established for each eligible Teacher. c. A Teacher will vest in their VEBA account after completing five (5) consecutive years of service in the employ of the Board. A Teacher shall not have any right to their account until he has vested. d. If a Teacher’s employment ends for any reason prior to becoming vested, their account shall be forfeited. Any forfeited amounts shall be used to reduce the Board’s contribution. e. Teachers working under a regular contract shall be eligible for the following contribution: i. By July 1st of each subsequent year this Agreement is in effect, for Teacher’s under regular contract, one-half of one percent (0.5%) of the Teacher’s salary. ii. All amounts credited shall be allocated to individual VEBA accounts established for each eligible Teacher upon the completion of the second consecutive year of service. Prior to that, the Board contribution shall be credited to a record keeping account which the Board shall establish for the sole purpose of tracking credits for Teachers who have not yet completed two (2) consecutive years of service. No interest or earnings shall accrue on the record keeping accounts. f. Participants shall pay administrative and trust fees on a per person basis. g. The Board’s sole obligation is to fund the obligations set forth above. The Board does not warrant the tax nature of these contributions and shall not be responsible for any income taxes or other assessment.

Voluntary Employees’ Beneficiary Association (VEBA. 1. The Board will establish a Voluntary Employees’ Beneficiary Association (VEBA), as set forth herein. The Board and the Association shall mutually agree as to what investment funds will be offed offered under the VEBA, not less than annually, and, to the extent extent, more than one fund is offered, the participants shall be given the right to allocate their account balances among such funds. Participants shall be solely responsible for the performance of the investment fund(s). 2. The VEBA shall provide for the following: a. The VEBA vendor and benefit option shall be selected by mutual agreement between the Board and the Association. b. All amounts contributed shall be allocated to individual accounts established for each eligible Teacher. c. A Teacher will vest in their VEBA account after completing five (5) consecutive years of service in the employ of the Board. A Teacher shall not have any right to their account until he has vested. d. If a Teacher’s employment ends for any reason prior to becoming vested, their account shall be forfeited. Any forfeited amounts shall be used to reduce the Board’s contribution. e. Teachers working under a regular contract shall be eligible for the following contribution: i. By July 1st of each subsequent year year, this Agreement is in effect, for Teacher’s under regular contract, one-half of one percent (0.5%) of the Teacher’s salary. ii. All amounts credited shall be allocated to individual VEBA accounts established for each eligible Teacher upon the completion of the second consecutive year of service. Prior to that, the Board contribution shall be credited to a record record-keeping account which the Board shall establish for the sole purpose of tracking credits for Teachers who have not yet completed two (2) consecutive years of service. No interest or earnings shall accrue on the record record-keeping accounts. f. Participants shall pay administrative and trust fees on a per per-person basis. g. The Board’s sole obligation is to fund the obligations set forth above. The Board does not warrant the tax nature of these contributions and shall not be responsible for any income taxes or other assessment.

Voluntary Employees’ Beneficiary Association (VEBA. 1. The Board will establish a Voluntary Employees’ Beneficiary Association (VEBA), as set forth herein. The Board and the Association shall mutually agree as to what investment funds will be offed offered under the VEBA, not less than annually, and, to the extent extent, more than one fund is offered, the participants shall be given the right to allocate their account balances among such funds. Participants shall be solely responsible for the performance of the investment fund(s). 2. Effective January 1, 2003, the Board will make payments into a VEBA on behalf of Teachers who are eligible for severance pay or retirement pay as set out in this Agreement. 3. The VEBA shall provide for the following: a. The VEBA vendor and benefit option shall be selected by mutual agreement between the Board and the Association. b. All amounts contributed shall be allocated to individual accounts established for each eligible Teacher. c. A Teacher will vest in their VEBA account after completing five (5) consecutive years of service in the employ of the Board. A Teacher shall not have any right to their account until he has they are vested. d. If a Teacher’s employment ends for any reason prior to becoming vested, their account shall be forfeited. Any forfeited amounts shall be used to reduce the Board’s contribution. e. Teachers working under a regular contract shall be eligible for the following contribution: i. By July 1st of each subsequent year year, this Agreement is in effect, for Teacher’s Teachers under regular contract, one-half of one percent (0.5%) of the Teacher’s salary. ii. All amounts credited shall be allocated to individual VEBA accounts established for each eligible Teacher upon the completion of the second consecutive year of service. Prior to that, the Board contribution shall be credited to a record record-keeping account which the Board shall establish for the sole purpose of tracking credits for Teachers who have not yet completed two (2) consecutive years of service. No interest or earnings shall accrue on the record record-keeping accounts. f. Participants shall pay administrative and trust fees on a per per-person basis. g. The Board’s sole obligation is to fund the obligations set forth above. The Board does not warrant the tax nature of these contributions and shall not be responsible for any income taxes or other assessmentassessments.

Voluntary Employees’ Beneficiary Association (VEBA. 1. The Board will establish a Voluntary Employees’ Beneficiary Association (VEBA), as set forth herein. The Board and the Association shall mutually agree as to what investment funds will be offed offered under the VEBA, not less than annually, and, to the extent extent, more than one fund is offered, the participants shall be given the right to allocate their account balances among such funds. Participants shall be solely responsible for the performance of the investment fund(s). 2. The VEBA shall provide for the following: a. The VEBA vendor and benefit option shall be selected by mutual agreement between the Board and the Association. b. All amounts contributed shall be allocated to individual accounts established for each eligible Teacher. c. A Teacher will vest in their VEBA account after completing five (5) consecutive years of service in the employ of the Board. A Teacher shall not have any right to their account until he has they are vested. d. If a Teacher’s employment ends for any reason prior to becoming vested, their account shall be forfeited. Any forfeited amounts shall be used to reduce the Board’s contribution. e. Teachers working under a regular contract shall be eligible for the following contribution: i. By July 1st of each subsequent year year, this Agreement is in effect, for Teacher’s Teachers under regular contract, one-half of one percent (0.5%) of the Teacher’s salary. ii. All amounts credited shall be allocated to individual VEBA accounts established for each eligible Teacher upon the completion of the second consecutive year of service. Prior to that, the Board contribution shall be credited to a record record-keeping account which the Board shall establish for the sole purpose of tracking credits for Teachers who have not yet completed two (2) consecutive years of service. No interest or earnings shall accrue on the record record-keeping accounts. f. Participants shall pay administrative and trust fees on a per per-person basis. g. The Board’s sole obligation is to fund the obligations set forth above. The Board does not warrant the tax nature of these contributions and shall not be responsible for any income taxes or other assessmentassessments.

Voluntary Employees’ Beneficiary Association (VEBA. 1. The Board will establish a Voluntary Employees’ Beneficiary Association (VEBA), as set forth herein. The Board and the Association shall mutually agree as to what investment funds will be offed under the VEBA, not less than annually, and, to the extent more than one fund is offered, the participants shall be given the right to allocate their account balances among such funds. Participants shall be solely responsible for the performance of the investment fund(s). 2. The VEBA shall provide for the following: a. The VEBA vendor and benefit option shall be selected by mutual agreement between the Board and the Association. b. All amounts contributed shall be allocated to individual accounts established for each eligible Teacher. c. A Teacher will vest in their his VEBA account after completing five (5) consecutive years of service in the employ of the Board. A Teacher shall not have any right to their his account until he has vested. d. If a Teacher’s employment ends for any reason prior to becoming vested, their his account shall be forfeited. Any forfeited amounts shall be used to reduce the Board’s contribution. e. Teachers working under a regular contract shall be eligible for the following contribution: i. By July 1st of each subsequent year this Agreement is in effect, for Teacher’s under regular contract, one-half of one percent (0.5%) of the Teacher’s salary. ii. All amounts credited shall be allocated to individual VEBA accounts established for each eligible Teacher upon the completion of the second consecutive year of service. Prior to that, the Board contribution shall be credited to a record keeping account which the Board shall establish for the sole purpose of tracking credits for Teachers who have not yet completed two (2) consecutive years of service. No interest or earnings shall accrue on the record keeping accounts. f. Participants shall pay administrative and trust fees on a per person basis. g. The Board’s sole obligation is to fund the obligations set forth above. The Board does not warrant the tax nature of these contributions and shall not be responsible for any income taxes or other assessment.