Common use of MATCHING ANNUITY PLAN Clause in Contracts

MATCHING ANNUITY PLAN. The Board agrees to establish and maintain a qualified 401 (a) Annuity Plan (hereinafter referred to as the 401(a) Plan) for all certified employees covered under this collective bargaining agreement. The 401(a) Plan will be available for all certified employees. The Board will also maintain a 403(b) Plan (hereinafter referred to as the 403(b) Plan) for all certified employees covered under this collective bargaining agreement. The 403(b) Plan will include provisions for pre-tax salary reduction contributions which will be matched by equal Board contributions to the 401(a) Plan. The 401(a) Plan contributions will commence with the 1999-2000 contract year and continue each contract year thereafter. The maximum contribution that will be made to the 401(a) Plan by the Board will be 1.25% of Salary Schedule Salary. All eligible employees will be 100% fully vested at all times. The contributions made by the certified employees and matched dollar for dollar by the Board will be an amount which reflects the appropriate percent of the certified employee’s base salary as set forth on the certified employee’s Teacher’s Contract which corresponds to his or her placement on the Salary Schedule. The 401(a) Plan will: A. Be subject to all applicable Internal Revenue regulations.