Common use of STRS PICK-UP UTILIZING THE SALARY REDUCTION METHOD Clause in Contracts

STRS PICK-UP UTILIZING THE SALARY REDUCTION METHOD. The Board shall designate each Instructional Employee's mandatory contributions to the State Teachers Retirement System of Ohio as "picked up" by the Board as contemplated by Internal Revenue Service Revenue Rulings 77-464 and 81-36, although they shall continue to be designated as Instructional Employee contributions, as permitted by Attorney General Opinion 82-097, in order that the amount of the Instructional Employee’s income reported by the Board as subject to federal and Ohio income tax shall be the Instructional Employee’s total gross income reduced by the then current percentage amount of the Instructional Employee’s mandatory State Teachers Retirement System contribution which has been designated as "picked-up" by the Board shall be included in computing final average salary, provided that no Instructional Employee’s total salary is increased by such "pick up," nor is the Board's total contribution to the State Teachers Retirement System increased thereby. A. The pick-up percentage shall apply uniformly to all members of the bargaining unit as a condition of employment. The pick-up shall apply to all compensation, including supplemental earnings thereafter. B. The parties agree that should the rules and regulations of the IRS, or retirement system change making this procedure unworkable, the parties agree to return, without penalty, to the former method of employee/employer contributions. C. Payment for sick leave, personal leave, severance and supplementals, including unemployment and workers’ compensation, shall be based on the Instructional Employee’s daily gross pay prior to reduction as basis (e.g. gross pay divided by the number of days in an Instructional Employee’s contract). D. Such salary reduction shall not result in a salary which is less than the salary available under the state minimum salary schedule. Should the reduction calculation result in a salary that is less than the state minimum salary schedule, pro rata reduction shall result with the Instructional Employee contributing that portion which falls below such state minimum level. E. It is understood that it is the responsibility of each individual Instructional Employee to make necessary adjustment(s) in any other tax-sheltered annuities he/she has in order to be in compliance with IRS laws and regulations. F. The Board is not liable nor will it be held responsible for any related legal, IRS, STRS, or any other agencies' penalties or decisions concerning this plan now or in the future. G. The Association agrees to indemnify and save the Board harmless against any and all claims that shall arise out of or by reasons of any action taken by the Board in compliance with the provisions of the Article.

STRS PICK-UP UTILIZING THE SALARY REDUCTION METHOD. ‌ The Board shall designate each Instructional Employee's mandatory contributions to the State Teachers Retirement System of Ohio as "picked up" by the Board as contemplated by Internal Revenue Service Revenue Rulings 77-464 and 81-36, although they shall continue to be designated as Instructional Employee contributions, as permitted by Attorney General Opinion 82-097, in order that the amount of the Instructional Employee’s income reported by the Board as subject to federal and Ohio income tax shall be the Instructional Employee’s total gross income reduced by the then current percentage amount of the Instructional Employee’s mandatory State Teachers Retirement System contribution which has been designated as "picked-up" by the Board shall be included in computing final average salary, provided that no Instructional Employee’s total salary is increased by such "pick up," nor is the Board's total contribution to the State Teachers Retirement System increased thereby. A. The pick-up percentage shall apply uniformly to all members of the bargaining unit as a condition of employment. The pick-up shall apply to all compensation, including supplemental earnings thereafter. B. The parties agree that should the rules and regulations of the IRS, or retirement system change making this procedure unworkable, the parties agree to return, without penalty, to the former method of employee/employer contributions. C. Payment for sick leave, personal leave, severance and supplementals, including unemployment and workers’ compensation, shall be based on the Instructional Employee’s daily gross pay prior to reduction as basis (e.g. gross pay divided by the number of days in an Instructional Employee’s contract). D. Such salary reduction shall not result in a salary which is less than the salary available under the state minimum salary schedule. Should the reduction calculation result in a salary that is less than the state minimum salary schedule, pro rata reduction shall result with the Instructional Employee contributing that portion which falls below such state minimum level. E. It is understood that it is the responsibility of each individual Instructional Employee to make necessary adjustment(s) in any other tax-sheltered annuities he/she has in order to be in compliance with IRS laws and regulations. F. The Board is not liable nor will it be held responsible for any related legal, IRS, STRS, or any other agencies' penalties or decisions concerning this plan now or in the future. G. The Association agrees to indemnify and save the Board harmless against any and all claims that shall arise out of or by reasons of any action taken by the Board in compliance with the provisions of the Article.