Common use of STRS PICKUP (Salary Reduction/Restatement Clause in Contracts

STRS PICKUP (Salary Reduction/Restatement. The Board agrees to implement a “pick-up” of all of the STRS retirement contributions under the salary reduction method for all of the members in the bargaining unit, at no cost to the Board, under the following terms and conditions. The amount to be “picked-up” on behalf of each bargaining unit member shall be the mandatory contribution of the bargaining unit member’s gross annual compensation. The bargaining unit member’s annual compensation shall be reduced, at no cost to the Board, by an amount equal to the amount “picked-up (deferred)” by the Board for the purpose of State and Federal tax only. Each bargaining unit member will be responsible for compliance with Internal Revenue Service Salary exclusion allowance regulations with respect to the “pick-up” in combination with other tax deferred compensation plans. If the foregoing “pick-up” provisions are nullified by subsequent Internal Revenue Service rulings, Ohio Attorney General opinions, or other governing regulations, the Board will be held harmless and this article of the Agreement shall be declared null and void. The Board shall then return to the former method of employer/employee retirement system contributions as soon as the law requires.