State Teachers Retirement System Pick. Up
1. State Teachers Retirement System Board “Pick‐Up” shall be implemented and effective beginning January 1, 1984. This change in procedure will be at no cost to the Board and is solely for the purpose of reducing current federal withholding tax from members of the bargaining unit. This procedure will remain in effect as long as the Internal Revenue Ruling #77‐462 and the rules and regulations of the State Teachers Retirement System remain substantially unchanged.
2. Teachers are individually responsible for reviewing the relationship between this Article and any other tax deferral arrangements they may have.
3. The following guidelines must be met for implementation of the employer “pick‐up” or employee contributions.
a. The employer elects to “pick‐up” all or a portion of the required employee contributions in accordance with Internal Revenue Ruling #77‐ 462 which is supported by Attorney General Opinion #78‐049 and #82‐ 097.
b. The “pick‐up” must be a uniform percent for the entire group being covered. It must be considered as a condition for employment for that group and not at an individual member’s option.
c. All of the certificated personnel classified in the employee category designated on the notification form must be included for “pick‐up” purposes. All certificated personnel must be considered eligible as determined by the employer under one, or all, of the three (3) categories listed on the notification form. These categories are the following:
(1) Superintendent
(2) Administrators
(3) Teachers
d. Earnable compensation for “pick‐up” purposes includes supplemental earnings. The amount picked up by the employer on behalf of the employee does not discharge, relieve, or reduce the employer contributions required by Section 3307.53 of the Revised Code.
e. The amount picked up by the employer is applied toward employee contributions under Section 3307.51 of the Ohio Revised Code. All statutory and regulatory requirements applicable to Section 3307.51 Ohio Revised Code must also apply to the “pick‐up”. The Board agrees to account for the amount of the “pick‐up” but otherwise assumes no further liability.
f. The Board may refuse to accept “pick‐ups” if so directed by the Internal Revenue Service and the State Teachers Retirement System if guidelines based upon the changing status of the laws are not followed or if the qualified plan status of the State Teachers Retirement System is placed in jeopardy. Should for any reason the current taxation or def...
