Benefits in addition to basic salary are recognized by the Board as an integral part of the total compensation plan for staff members. The benefits extended the staff will be designed to promote their present and future economic security.
The Board intends to make non-salary reduction contributions on behalf of certain employees who terminate employment in accordance with The Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) amended Section 403 (b)(3) of the Internal Revenue Code of 1986, as amended to permit employers to make contributions to 403 (b) programs for employees who have terminated employment with the District and in accordance with other employee agreements.
The District will make such contributions permitted under Sections 403 (b)(3) and Sections 415 (c)(1) of the Code for certain terminated employees.
The Board will not permit any individual employee to have an option of receiving the equivalent amounts as compensation.
The Board authorizes and directs that the District institute and implement a policy (s) to make post-termination contributions on a non-exclusive basis for each eligible individual as defined in the policy (s), provided that such contributions shall not exceed the limits of Section 415 (c)(1) of the Code and shall not continue beyond the five (5) year period authorized under Section 403 (b)(3) of the Code.
The Board authorizes the superintendent to take any actions necessary or desirable to implement this policy.
First reading – 5/9/05
Adopted - 5/23/05
LEGAL REFS.: Section 403 (b)(3) of the Internal Revenue Code of 1986
Madison Central School District #39-2