Matching 403(B) Annuity Plan Clause Samples
The Matching 403(B) Annuity Plan clause establishes an employer-sponsored retirement savings program in which the employer matches a portion of the employee's contributions to a 403(b) annuity account. Typically, this clause outlines eligibility requirements, the percentage or amount the employer will match, and any vesting schedules that may apply to the matched funds. Its core practical function is to incentivize employees to save for retirement by providing additional employer-funded contributions, thereby enhancing employee benefits and supporting long-term financial security.
Matching 403(B) Annuity Plan. The school corporation agrees to establish and maintain a qualified 403(b) annuity plan (the "Plan") for all certified employees covered under this collective bargaining agreement. The Plan will include provisions for salary reduction contributions and matching employer contributions. The School Corporation’s matching employer contributions will be one percent (1%) of a teacher’s base salary. In the event an employee does not contribute the minimum required salary reduction amount (one percent (1%) of the teacher’s base salary), the corporation contribution will be zero. It is the employee’s responsibility to increase the salary reduction amount to the minimum requirement. The Plan is subject to Internal Revenue Code non-discrimination tests. If an employee is prohibited from making a full contribution to the Plan due to the non-discrimination tests, the school corporation's matching amount shall be paid to the employee. The 403(b) annuity plan vendor shall be selected by mutual agreement. The Board’s Matching Annuity Program will be a continuing obligation after the termination of this agreement unless modified by future negotiations. It is recognized that this contribution was provided in lieu of an equivalent raise on the teacher's regular salary schedule and is a recurring cost.
Matching 403(B) Annuity Plan. The school corporation agrees to establish and maintain a qualified 403(b) annuity plan (the "Plan") for all certified employees covered under this collective bargaining agreement. The Plan will include provisions for salary reduction contributions and matching employer contributions. Effective for the 2001/2002 school year, the school corporation contribution shall be according to the following table: Employee Required Corporation Teachers on the BS 0 through 5 yr $153.00 $363.00 schedule with 6 through 10 yr 202.00 412.00 11 through 15 yr 252.00 462.00 16 or more years 300.00 510.00 Teachers on the MS or higher schedule with 0 through 5 yr $202.00 $412.00 6 through 10 yr 252.00 462.00 11 through 15 yr 300.00 510.00 16 or more years 350.00 560.00 In the event an employee does not contribute the minimum required salary reduction amount, the corporation contribution will be zero. It is the employee’s responsibility to increase the salary reduction amount to the minimum requirement for their level of education and years of service. The Plan is subject to Internal Revenue Code non-discrimination tests. If an employee is prohibited from making a full contribution to the Plan due to the non-discrimination tests, the school corporation's matching amount shall be paid to the employee. The 403(b) annuity plan vendor shall be selected by mutual agreement. The Board’s Matching Annuity Program will be a continuing obligation after the termination of this agreement unless modified by future negotiations. It is recognized that this contribution was provided in lieu of an equivalent raise on the teacher's regular salary schedule and is a recurring cost.