Common use of IAP Clause in Contracts

IAP. 1. Effective January 1, 2004, in lieu of paying the six percent (6%) employee contribution to PERS for PERS members, Eastern Oregon University will pay the six percent (6%) employee contribution to the employee’s Individual Account Program (IAP) established under HB 2020. 2. Effective January 1, 2004, if the employee IAP account is declared invalid or is otherwise eliminated and a replacement is not available, then, effective upon the date of its invalidation or elimination, a corresponding general salary increase of six percent (6%) shall be paid to eligible employees, its equivalent, pursuant to the relevant chapter of law for governing PERS employee contributions. 3. If for any reason the six percent (6%) payment by Eastern Oregon University described above is declared invalid or otherwise eliminated, then effective on the date of its invalidation or elimination, a corresponding general salary increase of six percent (6%) shall be paid to eligible employees. In such case, employees’ six percent (6%) contributions shall be deducted for payment to the applicable employee accounts and shall be treated as ‘pre-tax’ contributions pursuant to Internal Revenue Code Section 414(h)(2). 4. In no case shall there be a six percent (6%) increase under both paragraph 2 and 3, above, of this Section. 5. The above provisions regarding the IAP and the six percent employee contribution are not applicable to members in the ORP.