Common use of Fringe Benefit Method Clause in Contracts

Fringe Benefit Method. The Board of Education shall pick up the entire administrator’s portion of the School Employees Retirement System contributions. The pickup paid by the employer will be included in earned compensation for retirement purposes. The Board of Education agrees to pick up the total of employee contributions required by ORC 3307.26 to be contributed by administrators to STRS Ohio. The Springfield City Board of Education is permitted to pick up employee contributions pursuant to Section ORC 3307.27, and Section 414(h)(2) of the Internal Revenue Code. These picked-up contributions, although designated as employee contributions, are being paid by the Board of Education in lieu of employee contributions and 10% shall be paid by the Board as a fringe benefit in addition to the contract salary otherwise payable to the employee. These contributions shall be treated as additional compensation and included in salary for retirement purposes. The remaining percentage required by law shall be treated as mandatory salary reduction from the contract salary otherwise payable to the employee. The employees mentioned above may not opt out of the picked-up contributions or elect to receive the contributed amounts directly instead of having them picked up by the Board of Education and paid to STRS Ohio.