| Bargaining Language |
| Suggested Bargaining Language |
| For Bargaining the ERI Benefit Option under a 403(b) Program |
Those interested in adding this benefit option should add the following suggested language to their proposed ERI contract language or existing ERI, severance, or sick leave payout language:
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(Benefits can be paid in one lump sum or any period up to 5 years after employment is terminated. The following is a sample of a three-year pay out.)
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| The first payment of $_,000 will paid into the employee's 403(b) plan no later than_______, 20__, the second payment of $_,000 will be paid into the employee's 403(b) plan made no later than _______, 20__, and the third payment of $_,000 will be paid into the employee's 403(b) plan no later than _______, 20__. These non-elective employer paid contribution payments to the employee's 403(b) plan by the ____________ will constitute tax-deferred payments under Section 403(b) of the Internal Revenue Code. There shall be no cash option to this employer contribution. |
(Caution: The amount of money received under a deferred compensation plan cannot exceed the current applicable amount under 415(c), which is $49,000 or 100% of compensation in 2010.) |
For Bargaining Employer-Paid Plans
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| Employer Matching Contribution Plan |
The Board and Association recognize the importance of each employee pursuing an active retirement savings program. Beginning with the ______ school year, the Board agrees to contribute as a non-elective employer contribution up to ______% of the employee's annual salary (as determined by the Salary Schedule and the Extra Duty Schedule) towards a Tax-Deferred Retirement Program. In order to receive the employer's contribution for a given fiscal school year, the employee must have contributed ______% of his/her salary into a [403(b)/457(b)] Program by June 30 of said fiscal school year. Employees shall select from any MEAFS-sponsored [403(b)/457(b)] Program. There shall be no cash option to this employer contribution.
If an employee has another contributing [403(b)/457(b)] Program established before______, he/she may continue the employer-matching contribution with that program.
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| Employer Contribution Plan for 403(b) Tax-Deferred/457(b) Deferred Compensation Plan |
The Board and Association recognize the importance of each employee pursuing an active retirement savings program. Beginning with the ______ school year, the Board agrees to contribute as a non-elective employer contribution an amount equal to ______% of the employee's annual salary (as determined by the Salary Schedule and the Extra Duty Schedule) into the MEAFS-sponsored [403(b)457(b)] Programs. Payments shall be made in ______ equal monthly payments starting with ____________ and ending with a ____________ payment. Employees working less than a full school year shall receive a pro-rated benefit amount. Unpaid leave days shall result in a pro-rated reduction of the annual amount paid to the employee's deferred compensation plan. There shall be no cash option to this employer contribution.
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For Bargaining Deferred Compensation Plans
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| 403(b) Tax-Deferred Annuities & 403(b)(7) Mutual Funds--Salary Reduction |
The Board shall provide all services necessary to enable the bargaining unit member to participate in the MEAFS-sponsored Tax-Deferred Retirement Programs through salary reduction pursuant to Section 403(b) of the Internal Revenue Code.
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| 457(b) Deferred Compensation Plan--Salary Reduction |
The Board shall provide all services necessary to enable the bargaining unit member to participate in the MEAFS-sponsored Deferred Compensation Plan through salary reduction pursuant to Section 457(b) of the Internal Revenue Code.
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For Bargaining Group Term Life Insurance
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The Board shall provide payroll deduction to enable the bargaining unit member to participate in the MEA-sponsored Group Term Life Insurance Program.
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For Bargaining Payroll Deduction
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The employer shall provide payroll deduction to enable the bargaining unit member to participate in all MEA Financial Services sponsored programs.
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