Common use of STRS/SERS Pickup Clause in Contracts

STRS/SERS Pickup. For purposes of this Article, total annual salary and salary per pay period for each bargaining unit member shall be the salary otherwise payable under this Agreement, as amended. The total annual salary and salary per pay period of each member shall be payable by the Board in two parts: (1) deferred salary and (2) cash salary. A member’s deferred salary shall be equal to that percentage of said member’s total annual salary or salary per pay period which is required from time to time by the State Teachers Retirement System (STRS) or School Employees Retirement System (SERS) to be paid as an employee contribution by said member and shall be paid by the Board to STRS/SERS on behalf of said member as a “pick-up” of the STRS/SERS employee contribution otherwise payable by said member. A member’s cash salary shall be equal to said member’s total annual salary or salary per pay period less the amount of the pickup for said member and shall be payable, subject to applicable payroll deductions, to said member. The Board’s total combined expenditures for members’ total annual salaries otherwise payable under this Agreement, as amended, (including pickup amounts) and its employer contributions to STRS/SERS shall not be greater than the amounts it would have paid for those items had this provision not been in effect. 1. The Board shall compute and remit its employer contributions to STRS/SERS based upon total annual salary, including the “pickup.” The Board shall report for federal and Ohio income tax purposes as a member’s gross income said member’s total annual salary less the amount of the “pickup.” The Board shall report for municipal income tax purposes as a member’s gross income said member’s total annual salary, including the amount of the pickup. The Board shall compute income tax withholding based upon gross income as reported to the respective taxing authorities. 2. The pickup shall be included in the member’s total annual salary for the purpose of computing daily rate of pay, for determining paid salary adjustments to be made due to absence, or for any other similar purpose. 3. Should the Internal Revenue Service determine that the deferred salary would be treated as current taxable income for federal income tax purposes, this section will be void and inoperable.