Common use of Retirement Pickup Clause in Contracts

Retirement Pickup. In accordance with Internal Revenue Code Section 414 (h) (2) and applicable IRS ruling there under, the Board agrees to pick-up an Employee's required contribution to the State Employees Retirement System (SERS). The pick-up shall be a "salary reduction" pick-up of the entire amount of the Employee contribution, which the Employee is required to contribute to SERS, based upon the salary provided in this contract. Thus, the cash salary that is payable to the Employee shall be reduced by the amount of the salary reduction pick-up amount; in furtherance of the foregoing, the Treasurer is hereby authorized to pay the amount of the pick-up directly to SERS as an employee contribution of the Employee; and the amount paid to SERS by the Treasurer shall not be considered as current taxable income for Federal, State and School District Income Tax for the Employee. No Employee shall have the option of receiving cash in lieu of the fringe benefit. The salary reduction pick-up amount shall be included in the contract salary of the Employee for all other purposes, including calculations of daily rate of pay, salary to be paid due to absences from employment, severance pay, life insurance or other employee benefits; and unless otherwise required by law, considered as compensation of the Employee for purposes of Ohio Revised Code Section 33107.01 (U). This section is not to be misconstrued as pick-up or pick-up on the pick-up for salary increase purposes.