Common use of – SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Clause in Contracts

– SCHOOL EMPLOYEES’ RETIREMENT SYSTEM. 30.01 The Treasurer of the Board of Education shall contribute to the School Employees’ Retirement System, in addition to the Board’s required employer contribution, an amount equal to each employee’s contribution in lieu of payment to such employee. The amount contributed by the Board on behalf of the employee shall be treated as a mandatory salary reduction from the contract salary, otherwise payable to such non-certificated employee. 30.02 The total annual salary for each employee shall be the salary otherwise payable under their contract. The total annual salary shall be payable in two parts; #1 deferred salary, #2 cash salary. An employee’s deferred salary shall be equal to that percent of said employee’s total annual salary which is required by SERS to be paid as an employee. Contribution by said employee shall be paid by the Board to SERS on behalf of said employee as “pick- up” of the SERS employee contribution, otherwise payable by the employee. An employee’s cash salary shall be equal to said employee’s total annual salary less the amount of the “pick-up” for said employee and shall be payable subject to applicable payroll deductions, to said employee. 30.03 The Board’s total combined expenditure for employee’s total annual salary otherwise payable under their contract (including “pick-up” amounts) and its employer contribution to SERS shall not be greater than the amounts it would have paid for these items had this provision not been in effect. 30.04 The Board shall compute and remit its employer’s contribution to SERS based upon the total annual salary, including the “pick- up”. The Board shall report for Federal and Ohio income tax purposes as the employee’s gross income, said employee’s total annual salary less the amount of “pick-up”. The Board shall report for SERS and municipal income tax purposes as an employee’s gross income, said employee’s total annual salary including the amount of the “pick-up”. The Board shall compute income tax withholding based upon gross income as reported to the respective tax authorities. 30.05 SERS “pick-up” shall in no way affect unemployment compensation, workers’ compensation, severance payment, daily rate of pay, or any other calculation based on the adopted salary schedule. 30.06 The “pick-up” shall be a uniform percentage for all non- certificated employees, and it shall apply to all payroll payments made after the effective date after November 1, 1987, and shall not be at the individual employee’s option. 30.07 The current taxation or deferred taxation of the “pick-up” is determined solely by the Internal Revenue Service and compliance with this section does not guarantee that the tax on the “pick-up” will be deferred. If the Internal Revenue Service or other governmental entity declares this “pick-up” not to be null and void then the SERS contribution procedure in place prior to the effective date of this provision shall be in effect. 30.08 Each bargaining unit member shall be responsible for compliance with Internal Revenue Service salary exclusion allowance regulations with respect to the “pick-up” in combination with other tax deferred compensation plans. Individuals shall have the right to adjust annuity deductions annually. 30.09 The Board herewith agrees with the Association to pick-up (assume and pay) contributions to the School Employee’s Retirement System (SERS) on behalf of the individuals in the bargaining unit on the following terms and conditions: A. The amount to be picked-up and paid on behalf of each individual shall be three percent (3%) of the individual’s compensation effective July 1, 1993, an additional 2% effective July 1, 1994 (Total 5% pick-up ) and an additional 2% effective July 1, 1995 (Total 7% pick-up). Pick-up contributions shall be included in earnings for retirement purposes for all non-certificated staff. B. The pick-up percentage shall apply uniformly to all individuals in the bargaining unit. C. The Board shall pay the member and employer contributions on the picked-up amount. D. The pick-up shall apply to all compensation, including supplemental earnings. 30.10 In the event Ohio law prohibits continuation of the 7% SERS “pick-up without reduction” provided for in Article 30.09, the base salary will be increased by 7%.