Common use of STRS PICK-UP WITH REDUCTION Clause in Contracts

STRS PICK-UP WITH REDUCTION. Annuitization of the employee’s share of retirement shall be as follows: The Alliance Board of Education shall designate each employee’s mandatory contributions to the State Teachers Retirement System of Ohio as “picked up” by the Board as interpreted by the Internal Revenue Service Rulings 77-462 and 81-36. Contributions “picked up” shall continue to be designated as employee contributions as permitted by Attorney General’s Opinion 82-097. In order that the amount of the employee’s income reported by the Board as subject to federal and Ohio income tax shall be the employee’s total gross income reduced by the then current percentage amount of the employee’s mandatory State Teachers Retirement System contribution which has been designated as “picked up” by the Board, and that the amount designated as “picked up” by the Board shall be included in computing final average salary, provided that no employee’s salary is increased by such “pick up”, nor is the Board’s total contribution to the State Teachers Retirement System of Ohio increased thereby. 1. The amount to be picked-up and paid on behalf of each employee shall be the percentage required by STRS of the employee. The employee’s annual compensation shall be reduced by an amount equal to the amount picked-up and paid by the Board. 2. The pick-up percentage shall apply uniformly to all members of the bargaining unit. 3. No employee covered by this provision shall have the option to elect a wage increase or other benefit in lieu of the employer pickup. 4. The pick-up shall apply to all compensation including supplemental earnings. 5. For Federal and State tax purposes, the W-2 form shall show the total amount of compensation reduced by the percentage required of the employee by STRS. For STRS purposes the total amount of compensation shall not be reduced. 6. STRS pick-up shall in no way affect unemployment compensation, sick leave, workers’ compensation, severance pay, daily rate of pay, or any other calculation based on appropriate salary schedule. (See Appendix A)