Common use of Board Payment to Teachers’ Retirement System Clause in Contracts

Board Payment to Teachers’ Retirement System. From the Compensation Schedule, other than the Board-paid contribution, the Board shall deduct and remit for each teacher a sum equal to the amount due such teacher pursuant to the Compensation Schedules to the State of Illinois Teachers’ Retirement System to be applied for the retirement account of such teacher. It is the intent of the parties of this Agreement to qualify these payments as “picked-up” contributions within the meaning of Section 414(h)(2) of the Internal Revenue Code so as to be excludable from the gross income of all teachers. The teachers shall have no right or claim to the funds so remitted except as they may subsequently become available upon retirement or resignation from the State of Illinois Teachers’ Retirement System. No teacher shall have the option of choosing to receive the amount contributed by the Board directly. The assumption and payment of the teacher’s required contribution to the Illinois Teachers’ Retirement System is a condition of employment made in order to secure the teacher’s future services, knowledge, and experience. The balance of the amount due each teacher pursuant to such Compensation Schedule shall be payable to the teacher as salary installments as otherwise provided herein, provided the Board shall deduct there from all monies as required by law or as authorized by the teacher pursuant to this Agreement. Such withholding shall include any and all additional amounts required to be paid to the State of Illinois Teachers’ Retirement System for the account of such teacher. Internal Revenue Service Revenue Rulings indicate that the amounts paid the State of Illinois Teachers’ Retirement System are properly excludable from the gross income of the teacher for income taxation purposes, and the District will not withhold Federal and State income taxes on funds remitted to the State of Illinois Teachers’ Retirement System on behalf of teachers.

Board Payment to Teachers’ Retirement System. From the Compensation Schedule, other than the Board-paid contribution, the Board shall deduct and remit for each teacher a the sum equal to the TRS employee percentage for the applicable TRS membership Tier of the amount due such teacher pursuant to the Compensation Schedules to the State of Illinois Teachers’ ' Retirement System to be applied for the retirement account of such teacher. It is the intent of the parties of by this Agreement to qualify these payments as “"picked-up” " contributions within the meaning of Section 414(h)(2414 (h) (2) of the Internal Revenue Code so as to be excludable from the gross income of all teachers. The teachers shall have no right or claim to the funds so remitted remitted, except as they may subsequently become available upon retirement or resignation from the State of Illinois Teachers’ ' Retirement System. No teacher shall have the option of choosing to receive the amount contributed by the Board directly. The assumption and payment of the teacher’s required contribution directly on his/her behalf to the State of Illinois Teachers’ ' Retirement System is a condition to be applied to the retirement account of employment made in order to secure the such teacher’s future services, knowledge, and experience. The balance of the amount due each teacher pursuant to such the Compensation Schedule Schedules shall be payable to the teacher as salary installments as otherwise provided herein, provided the Board shall deduct there from all monies monies, as required by law law, or as authorized by the teacher pursuant to this Agreement. Such withholding shall include any and all additional amounts required to be paid to the State of Illinois Teachers’ ' Retirement System for the account of such teacher. Internal Revenue Service Revenue Rulings indicate It is hereby agreed that the amounts paid Union shall hold the State Board harmless and indemnify the Board against all liabilities, loss and expense of Illinois Teachers’ Retirement System are properly excludable from the gross income whatever nature arising out of the Board's agreement to make payments on behalf of each teacher for income taxation purposes, and the District will not withhold Federal and State income taxes on funds remitted to the State of Illinois Teachers’ ' Retirement System. It is further agreed that the Board may deduct from each teacher's paychecks on a pro rata and otherwise reasonable basis any amount, including penalties, which the Board is obligated to pay as a result of the improper or incorrect withholding of income or other taxes or contributions to the State of Illinois Teachers' Retirement System or the improper or incorrect reporting thereof arising out of the Board's agreement to make payments on behalf of teacherseach teacher to the State of Illinois Teachers' Retirement System. In such case, the Board will be relieved of all obligations to comply with this Section.