Common use of STRS PICK-UP Clause in Contracts

STRS PICK-UP. A. The Board shall pick-up contributions to the State Teachers Retirement System paid on behalf of the employees in the bargaining unit utilizing the salary reduction method under the following terms and condition: 1. The amount to be “picked-up” on behalf of each employee shall be state mandated share of the employee’s gross annual compensation. The employee’s annual compensation shall be reduced by an amount equal to the amount “picked-up” by the Board for the purpose of City, State, and Federal Tax. 2. The “pick-up” percentage shall apply uniformly to all members of the bargaining unit as a condition of employment. 3. Payment for sick leave, personal leave, severance, supplemental, etc. including unemployment and worker’s compensation, shall be based on the employee’s gross or daily gross pay prior to the reduction as basis (i.e., gross pay divided by the number of days in a teacher’s contract). 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.