1. TEACHERS HIRED PRIOR TO JANUARY 1, 2004
a. Contributions – The School Corporation shall contribute to a voluntary teachers’ beneficiary association (―VEBA‖) as described in section 501(c)(9) of the Internal Revenue Code (the ―Code‖) that amount representing the present value of the group medical, dental, and vision insurance benefits and term life insurance as calculated in Article VII, Section B. of the 2007-2008 Agreement. A committee of the Board and the Association shall select the organization administering the VEBA, the single investment vendor for the VEBA, and the terms and conditions for the administration and operations of the VEBA, butsubject to the other provisions contained in this Section C. All teachers may determine whether the Corporation’s initial contribution of the 403(b) match is placed in the 403(b), the VEBA, or a combination of both. This one time determination must be made within the first thirty (30) days of the start of the school year.
b. Catch Up Contribution – Following the ratification of the 2007-2008 contract currently employed teachers who received an original contribution that was less than one thousand two hundred fifty dollars ($1,250.00) will be given an additional one time contribution. The amount of this contribution shall be the difference between the individual’s original contribution and one thousand two hundred fifty dollars ($1,250.00).
c. Separate Shares – The amount calculated for each teacher will be invested in a separated account (―Separate Share‖). There will be no commingling of accounts and each teacher may determine how his or her Separate Share shall be invested among the investment options made available by the selected investment vendor for the VEBA.
d. Following the death of a teacher, any remaining amounts in his/her separate account may be used to pay allowable benefits for a spouse or dependents. Any amounts not eventually distributed to or for the benefit of the teacher, spouse and/or dependents will be reallocated among the remaining members of this group.
2. TEACHERS HIRED AFTER JANUARY 1, 2004 AND BEFORE JULY 31, 2007
a. Contributions – Beginning August 1, 2007, the School Corporation shall make an annual contribution of four hundred twenty five dollars ($425.00) to the
teacher’s VEBA account.
b. Separate Share – The amount calculated for each teacher will be invested in a separate account (―Separate Share‖). There will be no commingling of accounts
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and each teacher may determine how his or her Separate Share shall be invested among the investment options made available by the selected investment vendor for the VEBA.
c. Vesting – Each employee shall be 100% vested at the start of their 4th year of employment in the Center Grove Community Schools. Any employee, who separates from service, prior to the start of their fourth year of employment, shall forfeit their share. Forfeited shares shall be used to fund future contributions. d. Following the death of a teacher, any remaining amounts in his/her separate
account may be used to pay allowable benefits for a spouse or dependents. Any amounts not eventually distributed to or for the benefit of the teacher, spouse and/or dependents will be reallocated among the remaining members of this group.
3. TEACHERS HIRED AFTER AUGUST 1, 2007
a. Contributions – There shall be an annual $425 contribution for each employee hired after August 1, 2007.
b. Common Account – Separate unallocated accounts shall be established for the pool of teachers hired during each school year.
c. Separate Shares – The amount calculated for each teacher beginning with the 4th year will be invested in a separate VEBA account (―Separate Share‖). There will be no commingling of accounts and each teacher may determine how his or her Separate Share shall be invested among the investment options made available by the selected investment vendor for the VEBA.
d. Vesting – Until such time as a teacher has begun their 4th year of employment they shall have no entitlement to the assets held in this account. Any employee who separates prior to the beginning of their 4th year of employment shall forfeit their share. Forfeited shares shall be used to fund future contributions.
e. Distribution – Following separation of employment and the satisfaction of the vesting requirements set forth in above Subsections 1, 2 and 3 of this Section C., a teacher may use the amounts held in his/her Separate Share of the VEBA to pay health, dental, and vision insurance premiums, group term life insurance premiums, unreimbursed medical expenses, and any other expenditure that the IRS has authorized as a permissible expenditure for the teacher, spouse, and dependents. Furthermore, following the death of the teacher, who had otherwise satisfied the requirements of above Subsections 1, 2 and 3 before his or her death, any amounts remaining in the deceased teacher’s Separate Share may continue to be used to pay these premiums and expenses of the teacher’s spouse and dependents. Any amounts not eventually distributed to or for the benefit of the teacher, spouse and/or dependents will be paid to the teacher’s designated beneficiary or to his/her estate if no beneficiary designation has been made. At no time may the VEBA make loans to a teacher, his/her spouse, or dependents.
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f. Cost – The School Corporation shall not be paid any compensation for services performed on behalf of the VEBA. However, to the extent allowed by applicable law, all costs and investment fees incurred in the administration of the VEBA shall be paid or reimbursed from the VEBA assets, including any forfeitures, in any reasonable manner as determined by the Board and the Association.
B. 401 (a) PLAN
Effective August 1, 2007 all teachers enrolled in the 401(a) Plan are 100% vested.
Article VII, Section B of the 2007-2008 Agreement is hereby incorporated in this contract by reference and shall be considered as part of this contract.
1. Distributions – Until such time as an employee has severed employment he/she shall have no access to the funds held in his/her 401a account. Following separation of employment a teacher may elect to commence distributions from his/her 401(a) Plan account. If a teacher shall die, the deceased teacher’s 401(a) Plan account shall be distributed to the decedent’s designated beneficiary or to his/her estate if no beneficiary designation has been made. At no time may a participant borrow from his/her 401(a) Plan account.
2. Cost – The School Corporation shall not be paid any compensation for its services performed on behalf of the 401(a) Plan. However, to the extent allowed by applicable law, all costs and investment fees incurred in the administration of the 401(a) Plan shall be paid or reimbursed from the 401(a) Plan assets, including any forfeitures, in any reasonable manner as determined by the Board and the
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APPENDIX E – ISTA INSURANCE TRUST SETTLEMENT MONEY
Health insurance open enrollment will take place in November, 2014, for calendar year 2015. The ISTA Insurance Trust Settlement money will be used to pay the increased cost due to open
enrollment for calendar year 2015.
The ISTA Insurance Trust Settlement money will also be used to pay the increase health insurance cost due to new teaching positions in school year 2014-2015 for calendar year 2015.
The parties understand that nothing in this contract shall prohibit the Board from using ISTA Settlement money to offset health insurance costs for other employee groups.
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APPENDIX F – PAY FOR PERFORMANCE GRANT
PART 1: Using the Pay for Performance Grant, the Board agrees to give in a stipend the difference between the $1,000 and the base increase a teacher received in the transition from the old salary schedule to the new salary schedule. Stipends would only be given to teachers who are still
employed at the time the stipend is distributed, and who were rated ―Effective‖ or ―Highly Effective‖, or are new for the 2014-2015 school year unless otherwise directed by the State.
PART 2: Using the Pay for Performance Grant, first give in a stipend $1,500 (unless otherwise directed by the State) to all teachers who:
1. Resided in the top cell of Columns 3, 4 and 5 on the old salary schedule in 2013-2014 2. Were rated ―Effective‖ or ―Highly Effective‖ in 2013-2014
3. Resided in the top cell of Columns 3, 4 and 5 on the new salary schedule before the step increase was granted for 2014-2015
4. Are still employed at the time the stipend is distributed.
PART 3: Any money remaining after the above stipend is giving will be equally distributed among all teachers who were rated ―Effective‖ and ―High Effective‖ in 2013-2014 and are still employed at the time the stipend is distributed, unless otherwise directed by the State.