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

STRS Pickup (Salary Reduction Method. The Board and the Association herewith agree that the School District shall “pick-up” all of the contributions which, in accordance with Chapter 3307 of the Ohio Revised Code, are required to be paid by members of the unit (“employee contributions”) to the State Teachers Retirement System (“STRS”). The pick up of employee contributions to STRS shall constitute only an assumption and payment of the employee contribution to STRS in accordance with Section 414(h)(2) of the Internal Revenue Code (a “salary reduction” pickup); and shall be reported to STRS as an employee contribution. Accordingly, such pickup shall not (i) increase the gross annual compensation of members of the unit covered by the pickup, (ii) increase the contribution which is required to be paid by the School District to STRS in accordance with Chapter 3307 of the Ohio Revised Code, or (iii) otherwise be considered compensation of the member of the unit for any purpose. No member shall have the option of receiving a cash payment or other compensation in lieu of the pickup of his or her employee contribution to STRS. If the provisions of the Internal Revenue Code (and rulings and Attorney General Opinions thereunder) which authorize such pickup are altered or amended, or the taxation of picked up amounts is changed after execution of this agreement, the Board and School District shall be held harmless from any liability which may result from such changes.