MINUTES OF MEETING
MOORESVILLE CONSOLIDATED SCHOOL CORPORATION
NOVEMBER 23, 2005
A special meeting of the Board of School Trustees of the Mooresville Consolidated School Corporation was held on Wednesday, November 23, 2005 at 12:00 noon. After calling the meeting to order the Chairman noted the presence of the following: Randy Davis, David Davis and Dr. Phillip Wright. Mr. Ron Wright and Mrs. Beverly Viles were not present.
Dr. Wright stated that we are holding this special meeting for changes in the teacherís agreement. Mr. Turner then addressed the changes proposed to the Retirement/Severance Plan for Certified/Support Staff. The changes would affect Article VII of the Master Agreement. The administration has had meetings with MCTA representatives, ISTA representatives and with Mary Beth Braitman, tax attorney specialist with Ice, Miller Donadio law firm. Mr. Turner stated that there are changes in the wording in the agreement and that MCTA has signed off on the changes along with himself signing on behalf of the board.
Mr. Turner stated that since 1994, ten annual payments were made to the retirees. Since 2001, certified staff received $7,000 per year, while support staff has received $1,250. This will not change.
Since 2000, these payments were made into a combination of 403B Accounts and Section 125 Accounts for tax deferral and sheltering.
Effective immediately such payments will be made using a VEBA (voluntary employee beneficiary association) Account that will be established for retirees, either upon retirement, and for all those retired that are receiving payments.
Cash from the VEBA account will be available to retirees upon presentation of receipts and documentation for eligible expenditures for a range of expenditures from insurance premiums to payments made for medical related expenses, at any time. The money and interest earnings are not subject to taxes upon receipt into the account, or upon withdrawal. (in the past 403B accounts were taxable upon withdrawal).
Other language changes were made to clarify the language to avoid misunderstandings of intent in the future. None of those changes significantly impact the plan.
Mr. Turner recommended approval of these changes. Mr. R. Davis made a motion to approve the changes to the Retirement/Severance Plans, seconded by Mr. D. Davis. Motion carried 3-0.
Linda Roberson, MCTA President was here and thanked the administration for working with them in coming to an agreement to the changes that were made.
There being no further business to come before the board a motion was made by Mr. D. Davis and seconded by Mr. R. Davis. Motion carried 3-0.
Attest: Respectfully submitted,
President Randy Davis