STEP PAYMENTS Clause Samples
The STEP PAYMENTS clause establishes a payment schedule where amounts due are divided into multiple installments, typically tied to the completion of specific project milestones or time intervals. In practice, this means that instead of a single lump-sum payment, the paying party disburses funds incrementally as certain agreed-upon conditions are met, such as delivery of goods, completion of phases, or achievement of performance targets. This structure helps manage cash flow for both parties and reduces financial risk by ensuring payment is linked to progress or deliverables.
STEP PAYMENTS. Each regular, permanent member of the Fire Department shall be entitled to step payments (formerly call Longevity) after he or she has served as a member of the Fire Department for a period of five (5) years, including his or her year of probation. Payments for steps shall be in accordance with the following schedule and will be added to the member’s annual salary so as to be included in his or her annual salary for retirement pension purposes. Any member entitled to step payments shall be paid those payments weekly Effective July 1, 2005, the Step payment schedule will be as follows: Commencement of Employment to and including fifth (5th) year Including probationary period 0.0% Sixth (6th) year to and including twelfth (12th) year 8.5% of salary Thirteenth (13th) year to and including seventeenth (17th) year 9.5% of salary Eighteenth (18th) year to and including twentieth (20th) year 11.5% of salary Twenty first (21st) year to and including twenty forth (24th) year 12.5% of salary Twenty fifth (year) to retirement 13.5% of salary