Common use of STRS Pickup (Salary Reduction Method Clause in Contracts

STRS Pickup (Salary Reduction Method. In accordance with Internal Revenue Code (“IRC”) Section 414(h)(2), the Board shall pick up all of the required member contributions of all employees to the State Teachers Retirement System (“STRS”) and School Employees Retirement System (“SERS”). The pick-up shall be a “salary reduction” pick-up of the entire amount of the member contribution which the employee is required to contribute to STRS or SERS, based upon the salary and all other “compensation” of the employee under Ohio Revised Code (“ORC”) Section 3307.01 or 3309.01. Accordingly, the compensation of an employee covered by the salary reduction pick up shall be deemed to be reduced by the amount of the pick-up; and the Treasurer is hereby authorized to pay an equal amount the amount of the salary reduction pick-up directly to STRS or SERS as a member contribution of the employee. No employee shall have the option of receiving cash or other taxable benefits or amounts in lieu of having a pick-up in effect for all of the employee’s required member contributions to STRS or SERS. The Board's total combined expenditures for total annual salaries of all members of the bargaining unit (including "pickup" amounts) and its employer contributions to STRS shall not be greater than the amounts it would have paid for those items had this provision of this Agreement not been in effect.