State Teachers Retirement System of Ohio

Transcription

1 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH Employers Manual , 11/17/4

2 State Teachers Retirement System of Ohio

3 INTRODUCTION STRS Ohio is pleased to provide you with this Employers Manual. It is designed to be a ready reference regarding administrative procedures for treasurers and fiscal officers of employers of STRS Ohio members. You, as the employer, play a key role in reporting and maintaining accurate retirement information for your employees who are STRS Ohio members. STRS Ohio was established by authority of the Ohio General Assembly on Sept. 9, 1920, as a statewide teacher retirement plan. The general administration and management of STRS Ohio is vested in the State Teachers Retirement Board. Membership and benefits of STRS Ohio are authorized by Chapter 3307 of the Revised Code. The Retirement Board has also adopted rules necessary for the fulfillment of its duties. Ohio Revised Code Chapter 3307 and Administrative Code Rules supersede information provided in this manual. Insertions, deletions and revisions will be produced for this manual on a timely basis. If you have questions regarding this manual or the described procedures, please contact us toll-free at CONTENTS Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Membership Compensation Payroll Reporting of Contributions Employer Pickup Annual Reporting Retirement Reporting Earned Service Credit Account Withdrawal Employer Contributions Absences and Leaves Purchasing Service Credit Service Retirement for Defined Benefit Plan Members Disability Benefit Program Survivor Benefits Defined Contribution and Combined Plans Employment of Ohio Public Retirees Employers Manual Intro Page 1 (6/16)

4 State Teachers Retirement System of Ohio

5 SECTION 1 MEMBERSHIP Contents MEMBERSHIP...1 Third-Party Contractors/Temporary Agencies...2 NOTIFYING STRS OHIO OF A NEWLY HIRED EDUCATOR...2 Submitting the Information...2 Sample New hire notification screens...3 Sample New Hire Record Layout...4 Sample Form SSA-1945 (Statement Concerning Your Employment in a Job Not Covered by Social Security)...6 RETIREMENT PLAN ACCOUNTS...7 EXEMPTION FROM CONTRIBUTIONS FOR STUDENT EMPLOYEES...8 Sample Form Exemption From Contributions for Student Employees...9 EXEMPTION FROM MEMBERSHIP...10 Visiting Faculty Members...10 Alternative Retirement Plans...10 Employers Manual Section 1 Contents (6/16)

6 State Teachers Retirement System of Ohio

7 MEMBERSHIP Ohio law defines STRS Ohio membership in Section of the Revised Code (R.C.). Generally, membership is required for: Any person paid from public funds and employed in the public schools under any type of contract described in Section or , R.C., in a position for which the person is required to have a license issued pursuant to Sections to , R.C. Any person employed as a teacher or faculty member in a community school or a science, technology, engineering and mathematics (STEM) school pursuant to Chapter 3314 or 3326, R.C. Any other teacher or faculty member employed in any school, college, university, institution or other agency wholly controlled and managed, or supported in whole or in part, by the state or any of its subdivisions. The educational employees of ODE. Positions that are covered by STRS Ohio include, but are not limited to, the following: Adult education instructors Athletic directors and coaches (who hold a valid teaching license) Community school directors and academic administrators Counselors Faculty members Interpreters for the hearing impaired Occupational and physical therapists Occupational and physical therapy assistants Orientation and mobility specialists Principals and academic administrators Psychologists Social workers Superintendents Teachers and substitute teachers Teachers employed to work in parochial or private schools using auxiliary funds Tutors Board of education members can contribute to either the School Employees Retirement System of Ohio (SERS) or to Social Security for compensation paid for service as a school board member. Community School Board membership questions should be directed to SERS. Membership is not required for any person employed by a community school operator who was withholding and paying Social Security taxes for persons employed in the school as teachers on or before Feb. 1, 2016, unless the person had contributing service with an Ohio community school within the last year. STRS Ohio has the authority to make membership determinations as set forth by Chapter 3307, R.C. Employers Manual Section 1 Page 1 (6/16)

8 The only exceptions to STRS Ohio membership and contributions are for student employees employed part-time by the school they are attending, certain visiting faculty and eligible faculty selecting an alternative retirement plan (see information on Pages 8 10 of this section). THIRD-PARTY CONTRACTORS/TEMPORARY AGENCIES Hiring a teacher or administrator as a third-party contractor or through a temporary agency does not necessarily relieve the obligation for member and employer contributions on earnings. If the mode and manner of teaching duties performed by a third-party contractor are controlled by the STRS Ohio employer, then STRS Ohio considers the individual to be a member and requires contributions to be remitted. In all cases of doubt, the Retirement Board shall determine whether a person is a teacher for STRS Ohio purposes. For more information, see the Contracted Services Membership Determination fact sheet on the employer website. NOTIFYING STRS OHIO OF A NEWLY HIRED EDUCATOR When educators become members of STRS Ohio, they are sent information about the various retirement plan options. To ensure that members receive timely information about their choices and have sufficient time to make an informed decision, employers must notify STRS Ohio within 10 business days of the educator s first date on payroll. Notification is also required if the educator is returning to service after an extended leave or previous termination. Employers must complete either a new hire or reemployed retiree notification and submit the SSA-1945 form. SUBMITTING THE INFORMATION NEW HIRE NOTIFICATION Employers can notify STRS Ohio of a newly hired educator using one of the following methods: 1. Online New hire information can be submitted through Employer Self Service (ESS) on the employer website by choosing New Hire Notification under the Application Menu (see sample on Page 3). To use ESS, you must be a registered user. See Registering to Use Employer Self Service in Section Secure file upload Transmit new hire information via secure file upload on the employer website. The file should be sent in the format on Page 4. Section 1 Page 2 (6/16) State Teachers Retirement System of Ohio

9 New hire notification screens New hire notification screens Employers Manual Section 1 Page 3 (6/15) Web Screens

10 New Hire Record Layout The following layout is required to transmit new hire notifications via secure file upload on our website. Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric NM=New hire 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 4 First Date on Payroll Social Security Number Date employee starts work MM/DD/CCYY Date Social Security number of employee Numeric 5 Last Name 6 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 7 Birth Date Birth date of employee MM/DD/CCYY Date 8 Gender Gender of employee Alphanumeric F=Female, M=Male 9 Address Delivery address. No punctuation except dash [ ] Alphanumeric 10 City Name City name Alphanumeric 11 State Code United States Postal Service (USPS) abbreviation for state Alphanumeric USPS assigned state codes, **=Foreign address 12 ZIP Code ZIP code (basic 5 digits) Numeric 13 ARP Identifies higher education faculty eligible to elect an alternative retirement plan (ARP). Note: Only applicable to college and university employers (optional field) Alphanumeric Y=Eligible for ARP, N=Ineligible/Not applicable 14 Reserved Space reserved for future use Alphanumeric Total record length = , 3/16/10 Section 1 Page 4 (6/16) State Teachers Retirement System of Ohio

11 REEMPLOYED RETIREE NOTIFICATION FORM See Section 16 for more information about the employment of Ohio public retirees. SSA-1945 FORM The federal Social Security Protection Act requires employers to submit an SSA-1945 form (see Page 6) to STRS Ohio for any member hired after Jan. 1, The form explains how public employment can affect Social Security benefits. It must be signed by the member and submitted to STRS Ohio by the employer. The completed SSA-1945 form can be submitted by mail, fax or secure file upload. When completing this federal form, please put the information below in the corresponding fields that are listed in parentheses. Name (Employee name) Social Security number (Employee ID#) School district name (Employer name) STRS Ohio employer number (Employer ID#) Employers Manual Section 1 Page 5 (6/16)

12 Social Security Administration Employee Name Statement Concerning Your Employment in a Job Not Covered by Social Security Employee ID# Statement Concerning Your Employment in a Job Not Covered by Social Security Side 1 Employer Name Employer ID# Your earnings from this job are not covered under Social Security. When you retire, or if you become disabled, you may receive a pension based on earnings from this job. If you do, and you are also entitled to a benefit from Social Security based on either your own work or the work of your husband or wife, or former husband or wife, your pension may affect the amount of the Social Security benefit you receive. Your Medicare benefits, however, will not be affected. Under the Social Security law, there are two ways your Social Security benefit amount may be affected. Windfall Elimination Provision Under the Windfall Elimination Provision, your Social Security retirement or disability benefit is figured using a modified formula when you are also entitled to a pension from a job where you did not pay Social Security tax. As a result, you will receive a lower Social Security benefit than if you were not entitled to a pension from this job. For example, if you are age 62 in 2013, the maximum monthly reduction in your Social Security benefit as a result of this provision is $ This amount is updated annually. This provision reduces, but does not totally eliminate, your Social Security benefit. For additional information, please refer to Social Security Publication, Windfall Elimination Provision. Government Pension Offset Provision Under the Government Pension Offset Provision, any Social Security spouse or widow(er) benefit to which you become entitled will be offset if you also receive a Federal, State or local government pension based on work where you did not pay Social Security tax. The offset reduces the amount of your Social Security spouse or widow(er) benefit by two-thirds of the amount of your pension. For example, if you get a monthly pension of $600 based on earnings that are not covered under Social Security, two-thirds of that amount, $400, is used to offset your Social Security spouse or widow(er) benefit. If you are eligible for a $500 widow(er) benefit, you will receive $100 per month from Social Security ($500 - $400=$100). Even if your pension is high enough to totally offset your spouse or widow(er) Social Security benefit, you are still eligible for Medicare at age 65. For additional information, please refer to Social Security Publication, Government Pension Offset. For More Information Social Security publications and additional information, including information about exceptions to each provision, are available at You may also call toll free , or for the deaf or hard of hearing call the TTY number , or contact your local Social Security office. I certify that I have received Form SSA-1945 that contains information about the possible effects of the Windfall Elimination Provision and the Government Pension Offset Provision on my potential future Social Security Benefits. Signature of Employee Date Form SSA-1945 ( ) Destroy Prior Editions Information about Social Security Form SSA-1945 Statement Concerning Your Employment in a Job Not Covered by Social Security New legislation [Section 419(c) of Public Law , the Social Security Protection Act of 2004] requires State and local government employers to provide a statement to employees hired January 1, 2005 or later in a job not covered under Social Security. The statement explains how a pension from that job could affect future Social Security benefits to which they may become entitled. Form SSA-1945, Statement Concerning Your Employment in a Job Not Covered by Social Security, is the document that employers should use to meet the requirements of the law. The SSA-1945 explains the potential effects of two provisions in the Social Security law for workers who also receive a pension based on their work in a job not covered by Social Security. The Windfall Elimination Provision can affect the amount of a worker s Social Security retirement or disability benefit. The Government Pension Offset Provision can affect a Social Security benefit received as a spouse, surviving spouse, or an ex-spouse. Employers must: Give the statement to the employee prior to the start of employment; Get the employee s signature on the form; and Submit a copy of the signed form to the pension paying agency. Social Security will not be setting any additional guidelines for the use of this form. Copies of the SSA-1945 are available online at the Social Security website, Paper copies can be requested by at ofsm.oswm.rqct.orders@ssa.gov or by fax at The request must include the name, complete address and telephone number of the employer. Forms will not be sent to a post office box. Also, if appropriate, include the name of the person to whom the forms are to be delivered. The forms are available in packages of 25. Please refer to Inventory Control Number (ICN) when ordering. Statement Concerning Your Employment in a Job Not Covered by Social Security Side 2 Form SSA-1945 ( ) Section 1 Page 6 (12/16) Sample Form (Sides 1 and 2) State Teachers Retirement System of Ohio

13 RETIREMENT PLAN ACCOUNTS STRS Ohio establishes and maintains individual accounts for each member based upon the plan selected by the member. Defined Benefit Plan the member s accumulated contributions will be combined with sufficient employer contributions and investment earnings to fund benefits when they are granted. Member contributions are credited to accounts each summer based on each district s annual report. Annual statements are mailed to each Defined Benefit Plan member in the fall showing account value and service credit. Defined Contribution Plan the member allocates his or her member and employer contributions in accordance with the provisions of the plan. Benefits are based on the performance of investment choices the member selects for these contributions. Member contributions and a portion of the related employer contributions are deposited in the member s defined contribution account upon receipt of contributions and payroll reports. Defined Contribution Plan account statements are mailed out quarterly. Combined Plan contributions are used to provide two different types of benefits: Defined contribution portion: the member allocates a portion of his or her member contributions in accordance with the provisions of the plan, and retirement benefits for this portion of the account are based on the performance of investment choices the member selects for these contributions. Member contributions are deposited in the defined contribution portion of the account upon receipt of contributions and payroll reports from the employer. Defined benefit portion: employer contributions and a portion of member contributions fund disability benefits, survivor benefits and service retirement benefits equal to 1% of final average salary (per year of service) at age 60. These contributions will be combined with sufficient investment earnings to pay benefits when granted. Earnings and service credit will be credited to the defined benefit portion of a member s account each summer based on each district s annual report. Employer contributions will not be credited to individual member accounts. Members enrolled in the Combined Plan receive quarterly statements for the defined contribution portion of their account and annual statements in the fall for the defined benefit portion of their account. For more information on the Defined Contribution and Combined Plans, see Section 15. Employers Manual Section 1 Page 7 (12/16)

14 EXEMPTION FROM CONTRIBUTIONS FOR STUDENT EMPLOYEES Administrative Code Rule allows members employed as teachers on a part-time basis by a school, college or university in which they are regularly attending classes to apply for exemption from contributions to STRS Ohio. Application for exemption must be made within 30 days of employment following each period of nonexempt employment. The exemption will remain in effect until employment as a student employee terminates or contributions are made on compensation paid by the same employer, whichever occurs earlier. Contributions are required during any period of employment during which the teacher is not attending classes summer sessions, for example. A new exemption form must be filed for any subsequent teaching service as a student employee. This exemption does not apply to student employees who are not currently members of STRS Ohio. Student employees who have not previously contributed to STRS Ohio are automatically denied membership no form is required. Teachers on leave of absence from other teaching positions covered by STRS Ohio are not eligible for exemption from contributions. Service credit for the exempt service may be purchased only as provided by Section , R.C., and Administrative Code Rule 3307: While members are exempt, they are not entitled to a refund of contributions pursuant to Section , R.C. All eligible student employees who want to apply for exemption from STRS Ohio contributions should complete an Exemption From Contributions for Student Employees application form (sample on the following page) within 30 days of employment following each period of nonexempt employment. Exemption forms are available online. After the student employee has completed his or her portion of the form, the employer should fill out the lower section and file the form with STRS Ohio. Section 1 Page 8 (6/16) State Teachers Retirement System of Ohio

15 EXEMPTION FROM CONTRIBUTIONS FOR STUDENT EMPLOYEES Members employed as teachers on a part-time basis by a school, college or university in which they are regularly attending classes may apply for exemption from contributions to STRS Ohio. Application for exemption must be made within 30 days of employment following each period of nonexempt employment. The exemption will remain in effect until employment as a student employee terminates or contributions are made on compensation paid by the same employer, whichever occurs earlier. Contributions are required during any period of employment during which the teacher is not attending classes. A new exemption form must be filed for any subsequent teaching service as a student employee. This exemption is applicable only to student employees who are currently members of STRS Ohio. Student employees who have not previously contributed to STRS Ohio are automatically denied membership and this exemption form is not required. Teachers on leave of absence from other teaching positions covered by STRS Ohio are not eligible for exemption from contributions. No service credit will be awarded for any period for which a member is exempt from contributions. Service credit for the exempt service may be purchased only as provided by Section , Revised Code. Exemption Declaration I hereby request exemption from contributions to STRS Ohio as a part-time teacher in a school, college or university where I am regularly attending classes. I understand that no service credit will be awarded for periods covered by this exemption and that I must contribute during any periods that I am not attending classes. I am not currently on leave of absence from another teaching position covered by STRS Ohio. Student employee name First Middle Last Student employee signature Social Security number Date Home address Street City State ZIP code Employer Certification The employer joins in this request for exemption from contributions to STRS Ohio for the student employee named above. Contributions will be remitted for any period in which the employee is not attending classes. Certified by Title Signature Date Employer name Four digit employer no , 1/16/10 Employers Manual Section 1 Page 9 (6/16) Sample Form

16 EXEMPTION FROM MEMBERSHIP VISITING FACULTY MEMBERS Membership in STRS Ohio may be denied only to faculty members employed on a temporary basis as visiting faculty members appointed to an academic chair in Ohio, provided the faculty member will remain the employee of a school, college or university other than an Ohio public institution. An exemption from STRS Ohio membership can be requested on condition that: a) The appointment will not exceed two years; b) The faculty member will terminate employment upon completion of the appointment; and c) The faculty member will remain the employee of a school, college or university other than an Ohio public institution. Requests for exemptions from membership and contributions must be made jointly by the employer and the faculty member and must meet the criteria above. It is important to remember that any assignment exceeding two years does not qualify for membership exemption. Failure to comply with the conditions set forth in Administrative Code Rule will void the denial of membership and contributions will be required to commence with the initial date of employment. Once STRS Ohio receives the joint request, the Retirement Board will determine if the exemption should be granted. If the request is granted, it is the employer s responsibility to monitor the length of employment and promptly notify STRS Ohio if there is a change in the teaching assignment. The exemption is only valid for the teaching assignment period approved by the Retirement Board. ALTERNATIVE RETIREMENT PLANS Certain academic and administrative employees employed full time by a public college or university are able to choose a retirement plan other than STRS Ohio. The chancellor of the Ohio Department of Higher Education has identified alternative retirement plans (ARP) that Ohio public colleges and universities are required to offer. Eligible employees include all full-time academic and administrative employees hired after the employer adopts an ARP. Employers are required to report employees electing an ARP and contribute a percentage of the electing employee s compensation to STRS Ohio for each employee electing an ARP. These payments go toward meeting the employer s proportionate share of STRS Ohio s unfunded accrued liability. Reemployed retirees employed full time by a college or university may choose to participate in an ARP. See Section 16 for additional information on the employment of Ohio public retirees. Section 1 Page 10 (6/16) State Teachers Retirement System of Ohio

17 SECTION 2 COMPENSATION Contents COMPENSATION... 1 Table Annual Compensation Limits... 2 Table Contribution Rates... 3 TAX-SHELTERED ANNUITIES... 4 SALARY REIMBURSED FROM PRIVATE INCOME... 4 TEACHER PROFESSIONAL ORGANIZATION (TPO) SERVICE... 4 MILITARY SERVICE PAY... 5 Employers Manual Section 2 Contents (6/14)

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19 COMPENSATION STRS Ohio members are required to contribute a percentage of earned compensation for teaching services, including supplemental and summer earnings. Employers must withhold the correct contribution amounts from STRS Ohio members salary payments and remit contributions to STRS Ohio within five business days after each pay date. The contribution rates for each fiscal year are listed on the table on Page 3 of this section. In addition, contributions are required for retirees of Ohio public retirement systems who are employed in STRS Ohio-covered positions. See Section 16 for more information about the employment of Ohio public retirees. For purposes of STRS Ohio contributions, compensation is defined in Section , R.C., as all salary, wages and other earnings, including compensation paid in accordance with supplemental contracts. Further, such amounts are subject to contributions without regard to whether the amounts are treated as deferred income for federal income tax purposes. If a benefit cafeteria plan is available and a member elects to reduce stated salary to receive additional fringe benefits, retirement contributions must be based on the gross salary before reduction. Conversely, cash payments that are in addition to stated salary and are in lieu of cafeteria plan benefits are not subject to retirement contributions. The following types of payments are specifically excluded from compensation for retirement purposes: Payments for accrued but unused sick leave or personal leave, including payments for perfect attendance and severance; Payments for accrued but unused vacation and vacation pay covering concurrent periods for which other salary or compensation is paid; Amounts paid to provide insurance coverage of any type and cash payments in lieu of providing insurance coverage, including payments for Medicare; Incidental benefits such as lodging, food, laundry, parking or services furnished by the employer; use of the employer s property or equipment; or job-related expenses such as housing, moving, travel or costs related to professional development; Anything of value that is based on retirement or an agreement to retire, including employees completing their contract early; Payments made by the employer in exchange for a member s waiver of a right to receive any payment amount or benefit; Retroactive increases that are not paid in accordance with uniform criteria applicable to all STRS Ohio members who are employed by the employer; Payments for services not actually rendered; Payments that exceed the annual compensation limits for plans qualified under Section 401 of the Internal Revenue Code. These limits can vary depending on the type of plan a member participates in. See the Annual Compensation Limits table on the following page for a complete listing of these limits; or Payments made as part of a settlement agreement or by court order unless member and employer contributions and interest are received for each fiscal year, which the board determines the teacher was improperly paid, regardless of the teacher s ability to recover on such amounts. Employers Manual Section 2 Page 1 (6/16)

20 Fiscal Year ANNUAL COMPENSATION LIMITS Defined Benefit Plan Defined Contribution Plan Combined Plan For new members on or after July 1, 1996 For members before July 1, 1996 For new members on or after July 1, 1996 For members before July 1, 1996 For new members on or after July 1, 1996 For members before July 1, $275,000 $405,000 $233,744* $233,744* $275,000 $405, $270,000 $400,000 $233,744 $233,744 $270,000 $400, $265,000 $395,000 $229,787 $229,787 $265,000 $395, $265,000 $395,000 $235,556 $235,556 $265,000 $395, $260,000 $385,000 $246,512 $246,512 $260,000 $385, $255,000 $380,000 $253,659 $253,659 $255,000 $380, $250,000 $375,000 $248,780 $248,780 $250,000 $375, $245,000 $360,000 $243,902 $243,902 $245,000 $360, $245,000 $360,000 $239,024 $239,024 $245,000 $360, $245,000 $360,000 $239,024 $239,024 $245,000 $360, $230,000 $345,000 $230,000 $239,024 $230,000 $345, $225,000 $335,000 $224,390 $224,390 $225,000 $335, $220,000 $325,000 $214,634 $214,634 $220,000 $325, $210,000 $315,000 $204,878 $204,878 $210,000 $315, $205,000 $305,000 $200,000 $200,000 $205,000 $305, $200,000 $300,000 $195,121 $195,121 $200,000 $300, $200,000 $295,000 $200,000 $202,020 $200,000 $295, $170,000 $285,000 $170,000 $176,768 $170,000 $285, $170,000 $275, $160,000 $270, $160,000 $265, $160,000 $261, $150,000 $247,600 These amounts are based on compensation limits under 401(a)(17) and contribution limits** under 415(c) of the Internal Revenue Code. If an amount is not shown, annual compensation limits were not applicable for that time period. *Amounts have not been updated by the IRS for the fiscal year. Amounts to be revised when available. **Contribution limits have been converted to compensation amounts for convenience. Section 2 Page 2 (11/17) State Teachers Retirement System of Ohio

21 CONTRIBUTION RATES Year* Member Employer % 12.55% % 12.55% % 13.50% % 13.50% % 13.50% % 13.50% % 13.50% 1982 Dec. 31, % 13.50% Eff. Jan. 1, % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% Year* Member Employer % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% % 14.00% *Fiscal year unless otherwise noted. Contact STRS Ohio toll-free at for contribution rates before Employers Manual Section 2 Page 3 (6/17)

22 TAX-SHELTERED ANNUITIES Annuities paid on behalf of a member are considered compensation for STRS Ohio purposes if the amount is part of the member s compensation for services and is not excluded for some other reason, such as an annuity in lieu of insurance benefits, under Section (L)(2), R.C. These annuity payments should be treated as supplemental compensation, and contributions must be remitted to STRS Ohio for the fiscal year in which annuity payments are earned. SALARY REIMBURSED FROM PRIVATE INCOME In accordance with Section , R.C., STRS Ohio will deny the right to contribute on any compensation that is reimbursed to employers unless specifically provided for by statute or Administrative Code Rule. This includes programs established by employers that allow members to voluntarily increase their compensation by reimbursing the employer for the amount of the increase from private income. Unauthorized contributions will be returned to the employer. TEACHER PROFESSIONAL ORGANIZATION (TPO) SERVICE STRS Ohio members who are paid for service to a teacher professional organization (TPO) may qualify to make contributions on part or all of their earnings for this service. A TPO is an organization of teaching professionals that qualifies as an employee organization under the terms of Section , R.C. Administrative Code Rule permits contributions for TPO service. STRS Ohio members who meet all of the following criteria may be eligible to complete contributions: Worked full time or part time for a TPO, Received compensation for service to a TPO, and Are not eligible for any other retirement benefits, based on the money received for performing such service, except Social Security. Contributions on payments for local, state or national TPO service can be remitted to STRS Ohio if a member meets the above criteria and the total annual compensation on which contributions are based does not exceed an amount calculated by multiplying the member s per diem contract rate for actual teaching service by 250 days. A member may also contribute on supplemental duties not related to the TPO. Compensation for TPO service must be part of the collective bargaining agreement between the employer and TPO to qualify for contributions. The agreement must specify that compensation will be paid for TPO service, name of individual or title of the position to be paid, the rate of pay for the service and the time period for which service will be paid, such as per hour, day or week. Contributions to STRS Ohio are required if provided for by the agreement. Employers must submit a copy of the agreement for STRS Ohio to review. Employers are required to certify the amount of contributions submitted for TPO service annually. See Section 5 for more information on the certification process. Section 2 Page 4 (6/16) State Teachers Retirement System of Ohio

23 MILITARY SERVICE PAY When Ohio teachers are called to active military duty, Section (B), (C) and (E), R.C., requires employers to pay the lesser of the following: 1. The difference between the permanent public employee s gross monthly wage or salary as a permanent public employee and the sum of the permanent public employee s gross uniformed pay and allowances received that month; or 2. Five hundred dollars. In addition to payments required under Ohio law, some STRS Ohio employers are continuing to pay these employees all or a portion of their salaries. By law, STRS Ohio cannot accept retirement contributions on payments made under Section (B), (C) and (E), R.C., or continuing salary payments made by employers to teachers called to active duty. Members should contact the STRS Ohio Member Services Center toll-free at for information about service credit during active military duty. Employers Manual Section 2 Page 5 (6/16)

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25 SECTION 3 PAYROLL REPORTING OF SECTION 3 CONTRIBUTIONS Contents PAYROLL REPORTING OF CONTRIBUTIONS...1 Member and Employer Contributions...1 Reporting Member Contributions to STRS Ohio...1 Sample Payroll Report Record Layout...2 Sample Payroll Report Header and Trailer Record Layouts...3 Sample Payroll report screen...4 Paying Contributions to STRS Ohio...5 Sample Cash remittance screens...6 Sample Form Cash Remittance...7 Payroll Adjustments Affecting a Prior Fiscal Year...8 Sample Backposting Record Layout...9 REGISTERING TO USE EMPLOYER SELF SERVICE...10 Sample Website access screens...11 Employers Manual Section 3 Contents (6/15)

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27 PAYROLL REPORTING OF CONTRIBUTIONS MEMBER AND EMPLOYER CONTRIBUTIONS Member contributions withheld from salary payments by the employer for all STRS Ohio members and reemployed retirees must be reported and paid to STRS Ohio no later than five business days after each pay date. Penalties and interest may be assessed for late reports or payments. If employer contributions are not paid through the state foundation program, employers are required to remit the employer contributions with the member contributions and payroll report. Total contributions reported on the payroll reports will be compared to the payments for member and employer contributions. Differences, if any, must be resolved before contributions can be credited to member defined contribution accounts. REPORTING MEMBER CONTRIBUTIONS TO STRS OHIO Payroll reports must be submitted to STRS Ohio using one of the following methods: Send an electronic file via secure file upload on the employer website. The file must be in the required file layout and include information required by STRS Ohio (see sample Payroll Report Record Layout and Payroll Report Header and Trailer Record Layouts on Pages 2 and 3). Submit the information through ESS on the employer website. (See the sample screen of a payroll report on Page 4.) If a payroll report has been sent in error or is incorrect, contact STRS Ohio immediately regarding resubmission of the data. Employers Manual Section 3 Page 1 (6/16)

28 Payroll Report Record Layout You must use the following layout to transmit your payroll report via secure file upload on our website or FTPS transmission. Please include only contributions for STRS Ohio members. Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric PAY=Payroll detail 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Pay Date Date on which employee was paid MM/DD/CCYY Date 4 Payroll Frequency Identifies schedule on which employee is paid. Helps STRS Ohio ensure payroll report is not missed (optional field) Alphanumeric W=Weekly, BW=Biweekly, M=Monthly, BM=Bimonthly, S=Supplemental/Special, O=Other 5 Social Security Number Social Security number of employee Numeric 6 Last Name 7 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 8 9 Member Pretax Contribution Member After-Tax Contribution Tax-deferred member contribution amount (employer pickup) ZZZZZZZ9.99 Taxed member contribution amount (regular) ZZZZZZZ9.99 Signed numeric, no commas, decimal in position 81 Signed numeric, no commas, decimal in position Notes Notes or comments related to the payroll detail transaction (optional field) Alphanumeric 11 Accrued Indicator Identifies whether or not the contributions are accrued (i.e., earned in the prior fiscal year) Alphanumeric Y=Yes, contributions are accrued, Space=No, contributions are not accrued 12 Reserved Space reserved for future use Alphanumeric Total record length = , 8/14/10 Section 3 Page 2 (6/16) State Teachers Retirement System of Ohio

29 Payroll Report Header and Trailer Record Layouts A payroll report header and trailer record is optional but including one with your transmission will expedite processing your report by assisting us in matching payments with your payroll report. Including a trailer record with your transmissions will help ensure that all records have been received. If you elect to send a payroll report header or trailer record with your payroll reports, you must use the following layout. Report Header Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric RH=Report Header 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Employer Name Name of employer (optional field) Alphanumeric 4 Payroll Type 5 Payment Method 6 Payment Reference Number 7 Payment Amount 8 Employer Reference Identifies payrolls with special processing requirements. Note: Applies to only payroll detail transactions (optional field). Identifies method of payment used (i.e., check or EFT) to submit employer s payroll obligation to STRS Ohio (optional field). Identifies employer s payment to STRS Ohio, either a check or EFT number (optional field). Payment amount forwarded to STRS Ohio for associated payroll. Employer contributions must be included unless paid through state foundation funds (optional field) Alphanumeric 53 4 Alphanumeric REG=Regular ZZZZZZZZZ9 Numeric ZZZZZZZZZ9.99 Available for employer use (optional field) Alphanumeric 9 Creation Date Date payroll report was created MM/DD/CCYY Date 10 Create Time Time payroll report was created HH:MM:SS Time 11 Reserved Space reserved for future use Alphanumeric Total record length = 256 Report Trailer CHK=Check, EFT=Electronic funds transfer Signed numeric, no commas, decimal in position 78 Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric RT=Report Trailer 2 Employer Number 3 Number Records Four-character employer number (the first digit for city school districts is the letter C). Total number of records transmitted on the employer s report. Note: Applies to all record types. 5 4 Alphanumeric 9 9 ZZZZZZZZ9 Numeric STRS Ohio employer number 4 Reserved Space reserved for future use Alphanumeric Total record length = , 8/14/10 Employers Manual Section 3 Page 3 (3/15)

30 09/11/ /11/ /11/ /11/2015 Payroll report screen Section 3 Page 4 (12/15) Web Screen State Teachers Retirement System of Ohio

31 PAYING CONTRIBUTIONS TO STRS OHIO Employers must forward payment for member contributions to STRS Ohio no later than five business days after each pay date. If a school s employer share is not paid through the state foundation program, the employer must also pay employer contributions directly to STRS Ohio within five business days. Penalties and interest may be assessed for late payments. Direct Debit The preferred method to remit contribution payments is via direct debit. To submit a payment through direct debit: 1. Log in to Employer Self Service (ESS) using your user name and password. 2. Click on Make a Payment in the Application Menu. For step-by-step instructions on bank account setup and making direct debit payments, see our ESS instructions or watch the on-demand webinar on the employer website. ACH Credit or Wire Transfer To submit a payment through ACH credit or wire transfer: 1. Contact your bank to initiate payment. 2. Provide your bank with the STRS Ohio bank routing number ( ) and the bank account number ( ). STRS Ohio uses Fifth Third Bank in Cincinnati. Be sure to include XX followed by your four-digit STRS Ohio employer number in the description line of the transaction. 3. Send STRS Ohio information about the contribution payment using one of the following methods: Submit an online cash remittance via the employer website; or Mail or fax a completed Cash Remittance form (available on our website) to STRS Ohio at Checks While STRS Ohio encourages the use of direct debit, ACH credit or wire transfer of payments, contributions may be paid by check. Since payment must be received by STRS Ohio no later than five business days after each pay date, remember to allow time for the U.S. Postal Service to deliver the check payment. Please be sure to include your four-digit STRS Ohio employer number on the check. 1. All checks should be mailed to the STRS Ohio lockbox at the following address: Employers Manual STRS Ohio P.O. Box Cincinnati, OH Checks sent to STRS Ohio via overnight, certified mail or any other delivery method requiring a signature from the recipient of the check should be mailed to the following address: Fifth Third Bank Wholesale Lockbox M.D. 1MOC1Q Box Kingsley Drive Cincinnati, OH Send STRS Ohio information about the contribution payment using one of the following methods: Submit an online cash remittance via the employer website; or Mail or fax a completed Cash Remittance form (available on the employer website) to STRS Ohio at The check and form may be mailed together. Section 3 Page 5 (6/16)

32 07/29/2016 $2, July 29, 2016 $2, /29/2016 $1, /29/2016 $ 2, Cash remittance screens Section 3 Page 6 (6/16) Web Screens State Teachers Retirement System of Ohio

33 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH CASH REMITTANCE Please send check(s) and this form to: STRS Ohio, P. O. Box , Cincinnati, OH If you use wire transfer or ACH, you can fax this form to or submit a cash remittance online. If you are submitting contributions for more than one employer, please complete a separate form for each employer. If you have questions, please call STRS Ohio toll-free at or visit Section 1 Employer Information Employer name Four-digit employer number Section 2 Payment Method and Amount Check(s) Total amount $ Wire transfer* Date Total amount $ ACH (Automated Clearing House)* Date Total amount $ *Complete a separate form for each wire transfer or ACH. Section 3 Contribution Amounts Included in Payment Check number Leave blank if wire transfer or ACH Employee contributions Pay date(s) Amount Complete for check(s), wire transfer or ACH $ $ Employer contributions $ Pay date(s) $ Section 4 Other Amounts Included in Payment ARP contributions (submit monthly) (College or university ONLY) Fiscal month Check number Leave blank if wire transfer or ACH Amount Complete for check(s), wire transfer or ACH $ Payroll deduction for purchase of service credit Fiscal month $ Adjustments to member accounts $ Payment for invoice (Submit copy of invoice) $ Other $ Other $ Total of amounts in Sections 3 and 4 should equal the total payment amount listed in Section 2. Date submitted Signature , 3/17/0 Employers Manual Section 3 Page 7 (6/17) Sample Form

34 PAYROLL ADJUSTMENTS AFFECTING A PRIOR FISCAL YEAR Employers occasionally make payments to employees for work performed in a prior fiscal year. These payments can result from a late time card, incorrect placement on a salary schedule, a performance bonus paid after June 30, or money paid as a result of a grievance or settlement. In addition, sometimes an employee is overpaid, making it necessary to adjust the employee s compensation for a prior fiscal year. When payments or adjustments are made to an employee s account for work performed in a prior fiscal year, employers must notify STRS Ohio if the amount was not included in the prior fiscal year s annual report by creating a backposting. Because STRS Ohio benefits are based on earned compensation reported in the annual report, this information must be accurate. Reporting payments and backposting adjustments on a timely basis allows us to amend your annual report for the fiscal year and provide accurate benefit payments to members. For example, in September 2017, a teacher turns in a time card for a supplemental contract earned in June Contributions on the earnings are remitted to STRS Ohio with the Sept. 1, 2017, payroll report. Due to the late receipt of the time card, the contributions were not included in the annual report. Therefore, it is necessary to make a backposting adjustment so the contributions can be included with the fiscal year. In this example, the employer correctly remitted contributions to STRS Ohio with the payroll report for the pay period in which the teacher was actually paid. In addition, the employer needs to create a backposting adjustment to notify STRS Ohio that the annual report should be adjusted since the money was actually earned in the fiscal year. As a reminder, contributions should always be remitted at the contribution rate in effect at the time the money was earned. Adjustments resulting from a grievance or settlement must be reviewed by STRS Ohio to determine if the amount can be included in compensation. Send a copy of the settlement to your employer education coordinator for review before submitting contributions. To notify us that an adjustment should be made to a prior fiscal year s annual report, you can: Use ESS to complete and submit an online backposting report on the employer website (written instructions and a tutorial video for completing a backposting report are available on the website). You must explain why the backposting needs to be made in the Notes section of the online report. Send an electronic adjustment record (see sample Backposting Record Layout on Page 9). Contact the Employer Reporting Department for more information. STRS Ohio recommends using this method when you are making adjustments to multiple accounts. If you owe interest on adjusted contributions, STRS Ohio will include the interest amount in your monthly statement of backpostings. You can also calculate interest using the related calculator on the employer website. If you have questions about payments and backposting adjustments, call the Employer Reporting Department toll-free at or send an to report@strsoh.org. Section 3 Page 8 (6/17) State Teachers Retirement System of Ohio

35 Backposting Record Layout If payments or backposting adjustments are made to a member account for work performed in a prior fiscal year, you must notify STRS Ohio if the amount was not included in the prior fiscal year s annual report. Member contributions for these backposting adjustments must be included in your payroll reports when the member is paid. The notification of the backposting can be made via an online backposting report on ESS or secure file upload on our website. If you choose to submit electronically, the following layout is required. Note: Backposting adjustments should not be reported for contributions that are included in accrued contributions on the annual report. Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric ADJ=Backposting 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Pay Date Date on which employee was paid MM/DD/CCYY Date 4 Adjustment Fiscal Year Identifies the fiscal year in which the contribution was earned. The STRS Ohio fiscal year runs from July 1 through the following June 30. Fiscal year is from July 1, 2016, through June 30, CCYY CCYY Fiscal year 5 Social Security Number Social Security number of employee Numeric 6 Last Name 7 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 8 9 Member Pretax Contribution Member After-Tax Contribution Tax-deferred member contribution amount (employer pickup) ZZZZZZZ9.99 Taxed member contribution amount (regular) ZZZZZZZ9.99 Signed numeric, no commas, decimal in position 86 Signed numeric, no commas, decimal in position Service Credit Service credit that applies to the associated adjustment of contributions Signed numeric, decimal in position Notes Notes or comments related to the backposting adjustment transaction (optional field) Alphanumeric 12 Reserved Space reserved for future use Alphanumeric Total record length = , 3/16/10 Employers Manual Section 3 Page 9 (6/16)

36 REGISTERING TO USE EMPLOYER SELF SERVICE Employer Self Service (ESS) is a secure area of the STRS Ohio Employer Website that allows employers to access information about their STRS Ohio account and submit required reports electronically to STRS Ohio. This secure method of online reporting is a convenient way to provide data to STRS Ohio. The following online applications are available in ESS: 1. New hire notification; 2. Reemployed retiree notification; 3. Employer reports (online payroll reporting data, remittance for purchase of service credit, backposting adjustments, annual report member data, and completion of service credit and accrued verifications); 4. Retirement reporting (online completion of deposit and service reports for new retirees); 5. Documents; 6. Estimated payroll (online submission of estimated annual payroll); 7. GASB reports; 8. Employer education registration; 9. Make a payment (online payments through direct debit); 10. Employment Verification; and 11. Withdrawal Certification. To gain access to ESS on the employer website, follow the steps below (see sample screens on Page 11). 1. Go to the employer website at and select the Register for Access to ESS in the top right corner. 2. Please include the name, title, phone and address for the contact person needing the ESS account. You will also need to indicate whether access should be granted to all functions or be limited. Also be sure to provide your employer number. 3. Notification will be sent directly to the user when the account has been activated. Section 3 Page 10 (11/17) State Teachers Retirement System of Ohio

37 t STRS Ohio Employer Website home page ESS online registration form screen Employers Manual Section 3 Page 11 (11/17) Web Screens

38 State Teachers Retirement System of Ohio

39 SECTION 4 EMPLOYER PICKUP Contents EMPLOYER PICKUP...1 Salary Reduction Pickup...1 Fringe Benefit Pickup...2 Notification to STRS Ohio...4 Reporting Tax-deferred Contributions to STRS Ohio...4 Sample Forms Notification for Employer Pickup of Employee Contributions...5 Sample Board Resolution to Authorize Employer Pickup of Employee Contributions...7 Employers Manual Section 4 Contents (6/15)

40 State Teachers Retirement System of Ohio

41 EMPLOYER PICKUP Individual employers may choose to pick up employee retirement contributions as a means of deferring federal and state income taxes on these amounts. The authority for employer pickup is the Internal Revenue Code. There are no Ohio laws or Administrative Code Rules governing this program. It should be noted that picked-up amounts are designated as employee contributions as defined in Section , R.C. Employer pickup amounts, along with other employee contributions, are refundable to the member upon valid application (see Section 8). Picked-up contributions are not included in taxable income for federal or state income tax purposes at the time the contributions are made. However, these amounts become taxable when received by the individual in the form of a refund or retirement benefits. Employers should contact tax authorities to determine the effect of employer pickup on city or local income taxes. When picked-up contributions are included in a refund, federal and state income taxes may continue to be deferred by rolling over or transferring the picked-up contributions to an individual retirement account or other eligible employer plan. Members should contact a tax advisor or the Internal Revenue Service (IRS) for additional explanation of these options. The Internal Revenue Code specifies two conditions for employer pickup of retirement contributions: The employer must specify that the contributions, although designated as employee contributions, are being paid by the employer in lieu of contributions by the employee; and The employee must not be given the option of choosing to receive the amounts directly instead of having them paid by the employer to the pension plan. These conditions must be included in the school board resolution authorizing the employer pickup plan (see sample resolution on Page 7). Additionally, the IRS has issued a private-letter ruling stating that pickup may not be effective for contributions made before the date of the school board resolution implementing the plan. There are three forms of pickup: Salary reduction pickup; Fringe benefit pickup not included in compensation; or Fringe benefit pickup included in compensation (pickup-on-pickup). SALARY REDUCTION PICKUP Under this form of employer pickup, individual employees salaries are reduced by the amount of employee retirement contributions. The contributions are then paid by the employer. Note that the pickup is included in the original contract salary before reduction and does not require any additional cash to be paid by the employer. The contribution amount is based on the original contract salary, and the earnings for retirement purposes include the contributions picked up by the employer. The employee receives the added benefit of reduced gross income for federal and state income tax purposes. Employers Manual Section 4 Page 1 (6/15)

42 Salary reduction pickup example Under this form of employer pickup, individual members salaries are reduced by the amount of member retirement contributions. The employer then pays the contributions. This form of pickup does not require any additional cash to be paid by the employer. The member receives the benefit of reduced gross income for state and federal purposes. For example, if the employer has a salary reduction pickup plan in place and a full-time educator has a $40,000 contract, then: Contract salary and earnings for STRS Ohio purposes... $40,000 Member contributions (currently 14%)... 5,600 Taxable federal and state income... $34,400 FRINGE BENEFIT PICKUP Contributions picked up by an employer in addition to stated salary may or may not be included in compensation subject to retirement contributions. When the employer action specifies that employer pickup, in addition to stated salary, is to be included in compensation for retirement purposes, total compensation should be determined by adding the amount of retirement contributions to be picked up to stated salary. Member and employer contributions must then be remitted on this total compensation. The authorizing action by the employer must expressly state that the employer pickup is to be included in earned compensation for retirement contribution purposes. Otherwise, STRS Ohio will assume that the pickup is not to be included in earnings for retirement purposes. Fringe benefit pickup not included in compensation example As a way to further compensate employees without increasing their gross income, some employers may choose to pay all or a portion of the member contributions. Under this form of pickup, members receive the benefit of the employer paying all or part of their member contributions without salary reduction, thus keeping their gross salary at the same amount. For example, if the employer has a fringe benefit pickup not included in compensation plan in place and a full-time educator has a $40,000 contract, and the employer agrees to pay the entire share of member contributions, then: Contract salary and earnings for STRS Ohio purposes... $40,000 Member contributions paid by employer (currently 14%)... $5,600 Taxable federal and state income... $40,000 Section 4 Page 2 (6/16) State Teachers Retirement System of Ohio

43 Fringe benefit pickup included in compensation (pickup-on-pickup) example This form of pickup not only allows the employer to pay all or part of the member contributions, but also includes those amounts in the member s salary for STRS Ohio retirement purposes. For example, if the employer has a fringe benefit pickup included in compensation plan in place and a full-time educator has a $40,000 contract (with no additional earnings), and the employer agrees to pay the entire share of member contributions, then: Contract salary and taxable federal and state income... $40,000 Member contributions paid by employer (currently 14%)... +$ 5,600 Compensation for STRS Ohio purposes... $45,600 Total contributions due to STRS Ohio equals ($45,600 x 14%)...$ 6,384 Partial pickup included in compensation for retirement purposes example Employers are also permitted to pay a portion of the member contributions and the remaining amount is treated as salary reduction. For example, a full-time educator has a $40,000 contract and the employer has a 6% fringe benefit pickup included in compensation plan. The remaining 8% is salary reduction pickup. Contract salary... $40,000 Employee retirement contribution (8% of salary paid by employee)...$ 3,200 Employee retirement contribution (6% of salary paid by employer in addition to stated salary)... $ 2,400 14% of $2,400 pickup... $00,336 Total employee contributions...$ 5,936 Taxable income (federal and state)... $36,800 Earnings for retirement purposes... $42,400 Employer contributions... $ 5,936 ($42,400 14% = $5,936) Employers Manual Section 4 Page 3 (6/16)

44 NOTIFICATION TO STRS OHIO Each employer is responsible for notifying STRS Ohio when a pickup plan has been adopted or changed. Notification for Employer Pickup of Employee Contributions form (see sample on Pages 5 6) is available under online forms on the employer website. Upon adoption or revision of a pickup plan, the notification form should be completed and submitted to STRS Ohio along with a certified copy of the applicable school board resolution or action authorizing the pickup plan. For STRS Ohio purposes, pickup may be adopted for one or more recognized employee groups: 1. Superintendent or president 2. Administrators or administrative faculty 3. Teachers or teaching faculty Each employee who is a member of STRS Ohio (including substitute teachers and tutors) is considered a part of one of these groups. Once the pickup plan is adopted for a recognized employee group, the pickup becomes a condition of employment and each employee within that group may not be given the option of receiving the contributions directly. However, the type and percentage of pickup can vary within a group as long as the total percentage of all pickup plans is the same for each member within that group. STRS Ohio agrees to account for the amount of the pickup but otherwise assumes no further liability. The current taxation or deferred taxation of the pickup is determined solely by the IRS, and compliance with the guidelines set forth above does not guarantee that the tax on the pickup will be deferred. STRS Ohio may refuse to accept pickup plans if so directed by the IRS, if guidelines based upon the changing state of the law are not followed, or if the qualified plan status of STRS Ohio is placed in jeopardy. REPORTING TAX-DEFERRED CONTRIBUTIONS TO STRS OHIO Tax-deferred employee contributions must be reported separately from after-tax employee contributions on the payroll report (see Section 3) and the annual report (see Section 5). There are separate fields for reporting after-tax contributions and tax-deferred contributions on these reports. Additionally, tax-deferred contributions should be reported separately from after-tax employeepaid contributions on deposit and service reports and the Application for Withdrawal Payment (see Sections 6 and 8, respectively). Section 4 Page 4 (6/15) State Teachers Retirement System of Ohio

45 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH (fax) NOTIFICATION FOR EMPLOYER PICKUP OF EMPLOYEE CONTRIBUTIONS This notification must be filed with STRS Ohio when an employer elects to pick up all or a portion of the required employee contributions stipulated in Section , Revised Code, or when an existing employer pickup plan is amended. Important: A copy of the agreement or board action authorizing the pickup must be submitted with this notification. Employer Employer no. Address City ZIP code Effective date of pickup is Employee group covered: School District College/University q Superintendent q President q Administrator q Administrative faculty q Teacher q Teaching faculty Employee contributions for earned compensation required under Section , R.C., will be accounted for as follows: Employee Contributions Salary reduction pickup... Pickup paid by employer in addition to regular contract salary... Is this amount included in compensation for retirement purposes? Total STRS Ohio contributions required under Section , R.C... % % q Yes q No % I understand this notification will remain in effect until a notice of change or termination is filed with STRS Ohio. I also understand all of the guidelines listed on the reverse side of this notification have been met or acknowledged. Signed Date Title , 3/17/0 Employers Manual Section 4 Page 5 (6/17) Sample Form (Side 1)

46 Guidelines for Implementing Employer Pickup of Employee Contributions 1. The employer elects to pick up all or a portion of the required employee contributions in accordance with applicable federal and state rulings. 2. An employer electing to pick up all or a portion of the required employee contributions set forth in Section , R.C., must file a notification form provided by STRS Ohio. Changes in the amount of pickup must be filed with STRS Ohio in advance of the effective date. 3. Pickup must be a condition of employment for each employee group and not optional for individual employees. 4. All certificated personnel classified in the employee category designated on the notification form must be included. (For pickup purposes, all employees who are active members of STRS Ohio must be eligible under one of the three employee categories listed on the notification form as determined by the employer.) 5. The amount picked up by the employer on behalf of the employee does not discharge, relieve or reduce the employer contributions required by Section , R.C. 6. The amount picked up by the employer is applied toward employee contributions under Section , R.C. All statutory and regulatory requirements applicable to Sections and , R.C., must also apply to the pickup. 7. When preparing the annual report, the employer must report picked-up (tax-deferred) contributions separately from regular (taxed) contributions. 8. STRS Ohio agrees to account for the amount of the pickup but otherwise assumes no further liability. The current taxation or deferred taxation of the pickup is determined solely by the IRS, and compliance with the guidelines set forth above does not guarantee that the tax on the pickup will be deferred. STRS Ohio may refuse to accept pickups if so directed by the IRS, if guidelines based upon the changing state of the law are not followed, or if the qualified plan status of STRS Ohio is placed in jeopardy , 3/17/0 Section 4 Page 6 (6/17) Sample Form (Side 2) State Teachers Retirement System of Ohio

47 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH (fax) SAMPLE BOARD RESOLUTION TO AUTHORIZE EMPLOYER PICKUP OF EMPLOYEE CONTRIBUTIONS Adoption of Pickup Be it resolved, effective (prospective date), the (employer board name) agrees to pick up the total amount of employee contributions required by Section , Revised Code, to be contributed by (group name and specific class of employees) to STRS Ohio. (Employer board name) is permitted to pick up employee contributions pursuant to Section , Revised Code, and Section 414(h)(2) of the Internal Revenue Code. These picked-up contributions, although designated as employee contributions, are being paid by the (employer board name) in lieu of employee contributions and (Salary reduction) shall be treated as mandatory salary reduction from the contract salary otherwise payable to the employee. or (Fringe benefit) shall be paid by the board as a fringe benefit in addition to the contract salary otherwise payable to the employee. These contributions shall not be treated as additional compensation for retirement purposes. or (Fringe benefit included in compensation) shall be paid by the board as a fringe benefit in addition to the contract salary otherwise payable to the employee. These contributions shall be treated as additional compensation and included in salary for retirement purposes. Employees in the (group) may not opt out of the picked-up contributions or elect to receive the contributed amounts directly instead of having them picked up by the (employer board name) and paid to STRS Ohio. This sample resolution is provided for your convenience and does not constitute tax or legal advice. Although we have attempted to provide accurate information, STRS Ohio cannot guarantee tax results in any way or be held responsible for any loss incurred as a result of the use of this information. Contact your tax advisor or legal counsel for specific information about how this information might affect your situation , 3/17/0 Employers Manual Section 4 Page 7 (6/17) Sample Form

48 State Teachers Retirement System of Ohio

49 SECTION 5 ANNUAL REPORTING Contents ANNUAL REPORTING...1 Member Contributions...1 Earned Service Credit...1 Reconciling Payroll Reports to Annual Reports...1 ANNUAL REPORT INSTRUCTIONS...2 Sample Annual reporting work report screen...3 For Employers Using Online Reports...3 Sample Annual report screen...3 For Employers Using Electronic File Submission...3 Sample Annual Reporting Record Layout...4 TPO CONTRIBUTION CERTIFICATION...5 Sample Form TPO Contribution Certification... 6 ACTIONS AFTER SUBMISSION...7 Service Credit Verification Report...7 Accrued Verification Report...7 Employer Detail Listing...7 Employers Manual Section 5 Contents (3/17)

50 State Teachers Retirement System of Ohio

51 ANNUAL REPORTING The annual report is used to update member accounts, reconcile employer contributions and prepare actuarial information. Each employer is required annually to report the amount of member contributions on earned compensation and service credit earned during the fiscal year for each of its employees who are STRS Ohio members. STRS Ohio begins accepting annual reports in June. The deadline for submitting the report is in early August each year. Online instructions for preparing the annual report are available to employers in early June. Employers can submit their reports via ESS or secure file upload. Please note that if you submit via ESS, the reports are available beginning July 1 of each year. If there are errors or differences in the member contribution or accrued contribution figures, you are encouraged to complete the submission of the report to STRS Ohio regardless. STRS Ohio will be able to identify any individual members whose annual report figures do not match the payroll report figures. The employer will then be contacted for a resolution. STRS Ohio may make minor corrections to your annual report based on payroll reports, withdrawal applications or deposit and service report information received. MEMBER CONTRIBUTIONS For each member, employers must report member contributions on compensation earned during the fiscal year. The total contributions reported for all members must be balanced against the total payroll deposits for the fiscal year, including adjustments for accrued contributions. EARNED SERVICE CREDIT The annual reporting process includes reporting earned service credit for each active member. Service credit is reported as a percentage of 1.00 full year and is to be granted for service from July 1 through June 30 of each year in accordance with Section , R.C., and Administrative Code Rule 3307: Please refer to Section 7 for complete instructions for determining and reporting earned service credit. RECONCILING PAYROLL REPORTS TO ANNUAL REPORTS After STRS Ohio receives the annual report, we will compare the total member contributions to fiscal year payroll reports to ensure that contributions reported on the annual report agree with payroll reports. Annual report = fiscal year payroll reports prior year accrued contributions + current year accrued contributions +/ adjustments. Employers Manual Section 5 Page 1 (6/16)

52 For example, a district s annual report member contribution total is $200,000. This total is reconciled to payroll reports as follows: payroll reports = $190, accrued contributions = $30, accrued contributions = $40,000 $190,000 $30,000 + $40,000 = $200,000 You must provide accrued contribution information in the annual report. Accrued contributions are member contributions earned by June 30 but not paid until July and August. ANNUAL REPORT INSTRUCTIONS The amount of after-tax member contributions, tax-deferred member contributions, accrued contributions and service credit should be recorded in the appropriate columns. Please include member status either an active member or reemployed retiree. Members retiring midyear and then returning to employment will have two entries on the annual report. After-tax Member Contributions: This column is for reporting any member contributions that were included in the individual s income for federal and state income taxes. No picked-up (tax-deferred) contributions should be included in this column. Pre-tax Member Contributions: The amount of member contributions picked up or tax-deferred by the employer, either through salary reduction or paid in addition to salary, should be reported in this column. For each member, the sum of the regular (taxed) contributions column and the picked-up (tax-deferred) contributions column should equal the total member contributions for the fiscal year. Accrued Contributions: Contributions on salary earned by June 30, but not paid until July and August, should be reported in this column. For example, a teacher has a contract of $45,000 for nine months of work from September to June, and the school has contributions deducted on a pretax basis. Her work is completed by June 5, but she is paid over 12 months. By the end of June, she has been paid $37,500 and the remaining $7,500 will be paid to her during July and August. Total pretax member contributions reported total $6,300 (14% of $45,000 for the fiscal year). In addition, contributions on the $7,500, or $1,050, are accrued contributions and should be reported separately on the annual report. Service Credit: This column is used for reporting service credit. The amount of service credit earned during the fiscal year should be recorded for each member (except reemployed retirees), whether the individual earned a full or partial year of credit. Refer to Section , R.C.; Administrative Code Rule 3307:1-2-01; and Section 7 of this manual. Reporting service credit earned is not required for reemployed retirees. See Section 16 for information about the employment of Ohio public retirees. Section 5 Page 2 (3/17) State Teachers Retirement System of Ohio

53 08/05/ /01/ /30/ Annual reporting work report screen FOR EMPLOYERS USING ONLINE REPORTS Employers will be notified when instructions are posted on the employer website for submitting their annual report via ESS. 06/30/ /30/ /30/ /30/ /30/ /30/2017 Annual report screen FOR EMPLOYERS USING ELECTRONIC FILE SUBMISSION Employers that submit their annual report via secure file upload will be notified when instructions are posted on the employer website. The file should be sent in the format following the Annual Reporting Record Layout on Page 4. Employers Manual Section 5 Page 3 (6/17) Web Screens

54 Annual Reporting Record Layout You must use the following layout to transmit your annual report via secure file upload on our website. Submission of address information for each member is preferred but not required. Please include address information if possible. Field No. Field Name Description Start Location Field Length Format Valid Values 1 Employer ID 2 Taxed Member Contribution (Regular) 3 Report Fiscal Year Four-character employer number (the first digit for city school districts is the letter C). Regular, taxed member contributions Does not include tax-deferred or "picked-up" contributions. First year of fiscal year. Report as Alphanumeric 5 8 STRS Ohio employer number Numeric, no commas, 2 assumed decimals 13 4 CCYY Numeric 4 Service Credit Service credit. Do not leave blank enter 100, 067, 001, etc. For reemployed retirees, enter Numeric, 2 assumed decimals 5 Membership Type Code Member type The letter R for reemployed retirees, otherwise blank Alphanumeric Space = active member, R = reemployed retiree 6 Social Security Number Social Security number of member Numeric 7 Name of Employee Employee name Last first middle. No punctuation except dash [ ] Alphanumeric 8 Tax-deferred Member Contribution (Pickup) Tax-deferred member contributions (employer pickup) Numeric, no commas, 2 assumed decimals 9 Delivery Address Line 1 Address line 1 All capital letters. No punctuation except dash [ ] Alphanumeric 10 Delivery Address Line 2 Address line 2 All capital letters. No punctuation except dash [ ] Alphanumeric 11 Delivery Address Line 3 Address line 3 All capital letters. No punctuation except dash [ ] Alphanumeric 12 City Name City name All capital letters. No punctuation except dash [ ] Alphanumeric 13 State Code United States Postal Service (USPS) abbreviation for state All capital letters Alphanumeric USPS assigned state codes, **= Foreign address 14 ZIP Code ZIP code (basic 5 digits) Numeric 15 ZIP Code Suffix Extended ZIP code Numeric 16 ZIP Code Delivery Point Delivery point ZIP code Numeric 17 Accrued Contribution Amount Contributions on fiscal year earnings that will not be paid until after July Numeric, no commas, 2 assumed decimals , 2/17/0 Total record length = 228 Section 5 Page 4 (3/17) State Teachers Retirement System of Ohio

55 TPO CONTRIBUTION CERTIFICATION Certification for teacher professional organization (TPO) contributions is required if your school is submitting contributions on compensation earned for service to a TPO. The TPO Contribution Certification form should be submitted the same day as your annual report. Compensation for TPO service must be part of the collective bargaining agreement between the employer and TPO to qualify for contributions. The agreement must specify that compensation will be paid for TPO service, name of individual or title of the position to be paid, the rate of pay for the service and the time period for which service will be paid, such as per hour, day or week. Contributions to STRS Ohio are required if provided for by the agreement. See Page 6 for the required TPO Contribution Certification form for each individual who had TPO contributions submitted on his or her behalf. Schools that are submitting contributions for more than 10 members may list the necessary information on a spreadsheet. The TPO Contribution Certification form must be signed and attached to the front of the spreadsheet. Employers Manual Section 5 Page 5 (6/16)

56 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH TPO CONTRIBUTION CERTIFICATION For the STRS Ohio fiscal year beginning July 1, 2016, and ending June 30, 2017 Please provide the required information below for each member contributing to STRS Ohio on earnings for service to teacher professional organizations (TPOs) or unions for the fiscal year. Certify the information by completing the bottom portion of the form and save the file to your computer. Submit the saved PDF via secure file upload on our website at Member s name Social Security number Base contract amount Number of days in base contract TPO earnings in excess of base contract Earnings for supplemental contracts unrelated to TPO service $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ As an employer of the members listed above as defined in Section (A), Revised Code, I certify the information I have provided is true and correct. I also certify that contributions on earnings for service to TPOs or unions reported via fiscal year payroll reports and the annual report are true and correct. Certified by Title Date Employer Employer no. Phone ( ) Area code B, 2/17/0 1/17/0 Section 5 Page 6 (3/17) Sample Form State Teachers Retirement System of Ohio

57 ACTIONS AFTER SUBMISSION SERVICE CREDIT VERIFICATION REPORT After STRS Ohio processes your annual report, you may be asked to verify service credit for members if the service credit reported appears inconsistent with the contributions reported. Employers will receive an when the service credit verification report is available for completion. This report should be completed as soon as possible, listing the number of days the member worked and indicating whether the member meets STRS Ohio s definition of full time or part time. If days are not available, then list the hours worked for the fiscal year or the full-time equivalent (FTE) for each semester. Based on the information submitted on the annual report and the service credit verification report, member annual statements are created and mailed to members in the Defined Benefit and Combined Plans in early October. ACCRUED VERIFICATION REPORT Employers will receive an accrued verification report for any member whose accrued contributions reported on payroll reports during the fiscal year do not match the accrued contribution amount reported on the annual report. Employers will receive an when the accrued verification report is available for completion. To complete the report, indicate whether the correct accrued contribution amount is the amount reported through payroll or the amount reported on the annual report. If neither amount is correct, you will be asked to indicate the correct amount of accrued contributions. See ESS instructions or the tutorial video on the employer website for detailed steps to complete this report. EMPLOYER DETAIL LISTING STRS Ohio will send employers an Employer Detail Listing that includes all members and reemployed retirees, contributions reported, accrued contributions and service credit including any changes that were requested. These reports are usually mailed in December each year. You should review this report and verify the contribution amount and service credit for each member. If you believe any of the information contained in the Employer Detail Listing is inaccurate, please contact the Employer Reporting Department toll-free at The amounts listed on this report are posted to each member s account. Discrepancies should be reported to STRS Ohio as soon as possible. Keep a copy of this report for your records. It can be used to verify discrepancies in the future. Employers Manual Section 5 Page 7 (3/17)

58 State Teachers Retirement System of Ohio

59 SECTION 6 RETIREMENT REPORTING Contents RETIREMENT REPORTING... 1 Deposit and Service Report... 1 Earnings... 1 Contributions... 2 Service Credit and Contract Information... 2 Certification/Contact Information... 3 DEPOSIT AND SERVICE REPORT FOR MEMBERS WITH CONTINUING EMPLOYMENT... 3 Sample Deposit and service report screen... 4 REQUEST FOR ADDITIONAL INFORMATION... 5 Sample Request for additional information screen... 6 Employers Manual Section 6 Contents (6/15)

60 State Teachers Retirement System of Ohio

61 RETIREMENT REPORTING DEPOSIT AND SERVICE REPORT The deposit and service report is an interim report to be completed for all teachers applying for service or disability benefits and for survivors eligible for benefits. The information is used by STRS Ohio to update the member s account and to compute benefit payments. This online form (see Page 4) can be completed via ESS on the employer website. Employers will receive notification when the form is available to complete, approximately 60 days before the scheduled retirement date for service retirement applicants. For disability benefit applicants, the form will be sent upon recommendation by the STRS Ohio examining physician that a disability benefit be granted. For members eligible for survivor benefits, the form will be sent as soon as possible after STRS Ohio is notified of the member s date of death. The deposit and service report should be completed and returned to STRS Ohio as soon as accurate information is available but no later than two weeks following the member s retirement effective date. The following information will assist you in completing the form. EARNINGS Line 1: Line 2: Line 3: Line 4: Line 5: Compensation earned by the teacher during the fiscal year under the most recent regular contract. This may be total earnings during the fiscal year. However, this amount may be only a portion of total earnings for educators employed on contracts that cross fiscal years or for teachers with supplemental contracts or summer employment. This amount should never be greater than line 14. Current year s earnings that were paid to complete the previous school year s contract. For administrators whose contract crosses fiscal years and work in July, you will report the amount of the previous July earnings on this line. Generally, no amounts will be reported for regular teachers on this line. (College and university employers will not complete this line.) Any amount reported and/or paid in the current year, but actually earned in the prior fiscal year and never backposted to the prior year. Do not report accrued contributions on this line. Please see the fact sheet titled Backpostings and Account Adjustments on our website for more information on correcting prior year earnings. Any supplemental earnings paid in addition to the regular contract, including summer earnings under a separate contract. List and describe each supplemental earning and indicate the amount earned. Be specific. Pickup amounts only if pickup is included in compensation for retirement purposes. List the percentage of pickup-on-pickup. Percentage will never be higher than the member contribution rate in effect. If the individual is not part of your staff covered by pickup-on-pickup, leave this line blank. Line 6: Total member earnings (sum of lines 1 through 5). Employers Manual Section 6 Page 1 (6/17)

62 CONTRIBUTIONS Line 7: Line 8: Line 9: Any taxed contributions that were reported as after-tax during the fiscal year. The majority of employers will not complete this line as contributions are normally withheld on a pretax, not after-tax basis. Member contributions reported as tax-deferred by the employer, whether through salary reduction or as a fringe benefit. List all pretax member contributions. For the fiscal year, 14% of total earnings on line 6. These contributions should agree with those reported on the current fiscal year s annual report. SERVICE CREDIT AND CONTRACT INFORMATION Line 10: Line 11: Line 12: Line 13: Line 14: Line 15: Line 16: Service credit earned by the member during the fiscal year. Refer to the Service Credit Decision Tree in Section 7 of this manual or the service credit calculator on our website to calculate credit. Last pay date that payment was or will be issued to the member. This is the last date contributions will be sent to STRS Ohio for this member. Last date the member worked, including any paid sick leave or vacation days used (other than severance pay for unused benefits). Position held by the member during the fiscal year. Most recent contract salary. The contract salary is the base amount the individual would have earned if employed for the entire contract year, excluding supplemental earnings. If the member was granted a raise during the fiscal year, the reported contract salary should be a blended contract of the two rates of pay for that year. Month and day service was contracted to begin and end. Also, indicate the number of days of service in full contract. The information shown should be for the entire term of the contract, whether or not the individual actually completed the contract. If the deposit and service report is for disability benefits, you will also be asked to provide a contract status. Percentage increase generally granted to teaching members is the overall increase in salary schedules or other salary documentation for the current contract year over the preceding year. For employers without salary schedules, indicate average increase paid to teaching employees. Section 6 Page 2 (6/17) State Teachers Retirement System of Ohio

63 CERTIFICATION/CONTACT INFORMATION The deposit and service report is to be certified by the treasurer or another responsible fiscal officer. Please include a phone number to assist STRS Ohio in completing any necessary follow-up. Finally, employers are reminded that the Revised Code strictly prohibits retirement contributions on any payments for unused sick leave or vacation or any other payments for services not actually rendered. (For more information, see Section 2.) Additional information, such as calamity days, changes to contract amounts, special circumstances, early contract completion or other miscellaneous items, can be communicated in the comments section of the online report. DEPOSIT AND SERVICE REPORT FOR MEMBERS WITH CONTINUING EMPLOYMENT Members contributing to Ohio public retirement systems for more than one job have the option at retirement to continue working uninterrupted in one or more of the lower paying or secondary positions (see Section 16, Pages 1 2). Earnings from all employment up to the retirement date are used to calculate the retirement benefit. The member must have held the secondary position for at least 12 consecutive months prior to retirement to be eligible to continue working with the secondary employer with no waiting period. Members must have earned compensation from their secondary employer for each of the 12 months before and in the month of retirement to avoid a forfeiture of benefits. The employer must complete the deposit and service report for all employees who plan to continue working in a secondary position after retirement. This can be completed via ESS on the employer website. Employers will receive an notifying them that a form is available to complete approximately 60 days before the member s scheduled retirement date. The deposit and service report should be completed and submitted to STRS Ohio as soon as accurate information is available. All earnings and service credit earned by the member during the current fiscal year up to the date of retirement should be included. Employers Manual Section 6 Page 3 (6/16)

64 Deposit and service report screen Section 6 Page 4 (6/17) Web Screen State Teachers Retirement System of Ohio

65 REQUEST FOR ADDITIONAL INFORMATION Salary histories for the five-year period preceding retirement have an impact on the computation of benefits for many retiring teachers. Therefore, employers are asked to complete a request for additional information if the member has an August-to-July contract crossing fiscal years or has had supplemental earnings in the five-year period preceding the member s retirement. The form can be completed online (see Page 6) via ESS on the employer website. This form is sent with the deposit and service report. Both forms should be completed and submitted to STRS Ohio. For members with an August-to-July contract crossing fiscal years, STRS Ohio uses this information to reconcile contract year earnings to the amounts reported on the annual report for each year. In some cases, a member s final average salary (FAS) is based on contract year earnings versus the fiscal or annual reporting year. For members whose FAS is limited by Ohio law, this information is also used to determine the reason for the limitation and whether it meets allowable exceptions. The request for additional information requests information for the five contract years preceding the current year. For each year listed on the form, record in the appropriate spaces: Line 1: Line 2: Line 3: Line 4: Line 5: Line 6: Line 7: Line 8: Line 9: Line 10: Line 11: The position the member held for the respective fiscal year. The amount of the member s full contract. Deducted amount for board-approved docked days or unearned contract amounts. This line is for any amount reported and/or paid in the current year, but actually earned in the prior fiscal year and never backposted to the prior year. Do not report accrued contributions on this line. Please see the fact sheet titled Backpostings and Account Adjustments on our website for more information on correcting prior year earnings. The beginning date of the respective contract. The ending date of the respective contract. The number of days of service rendered under the member s full contract. The percentage of pickup only if included in compensation for retirement purposes (pickup-on-pickup). Amount of compensation for extended days. Extended days occur outside the beginning and ending contract dates. (Generally not applicable to college and university employers.) Any supplemental earnings. List all supplementals separately, giving a brief description of each. List any amounts earned during the fiscal year that were included on the annual report for work under a prior year contract. Only complete this line for individuals whose contracts cross fiscal years and who work in July. (College and university employers will not complete this line.) Employers Manual Section 6 Page 5 (6/16)

66 Request for additional information screen Section 6 Page 6 (6/17) Web Screen State Teachers Retirement System of Ohio

67 SECTION 7 EARNED SERVICE CREDIT Contents EARNED SERVICE CREDIT...1 Full-time Service...1 Part-time Service...1 College and University Educators...2 Partially Paid Leaves of Absence...2 Chart Service Credit Decision Tree...3 Chart State Minimum Salaries chart...4 Employers Manual Section 7 Contents (6/15)

68 State Teachers Retirement System of Ohio

69 EARNED SERVICE CREDIT Service credit is reported as a percentage of 1.00 full year and is granted for service from July 1 through June 30 of each year in accordance with Section , R.C., and Administrative Code Rule 3307: FULL-TIME SERVICE Full-time teachers are entitled to a full year of service credit upon the completion of 120 days or two semesters of contributing service. Full-time is defined as being employed under a contract that: Begins and ends on the first and last day of a 365-day year, or is based on a school year of at least the minimum hours required by Sections and , R.C., or two-semester academic year; and Provides compensation equal to 100% of full-time salary as defined by an employer s salary schedule for a teacher of the same experience teaching every day, all day; or for college and university, a full-time equivalent (FTE) workload. If fewer than 120 full-time days are worked, service credit is calculated as part-time service. PART-TIME SERVICE Service credit calculation for part-time teachers (substitutes, tutors, etc.) is dependent on the number of days or partial days of paid service. A partial day of service includes any day that at least a portion of the day is spent teaching. Part-time teachers who teach at least 90 days, have an employment relationship with the employer for at least 120 days, and whose total compensation is equal to or greater than the state minimum salary receive a full year of service credit. Part-time teachers who work at least 90 days, have an employment relationship with the employer for at least 120 days, but earn less than the state minimum salary, receive credit equal to the greater of: Number of days 180 days, or Total compensation state minimum salary. The service credit calculation for teachers who work less than 90 days or the employment relationship is not in effect for at least 120 days is the number of days or partial days of paid service divided by 180 days. If the number of days or partial days of service is not available from payroll records and the individual is compensated on an hourly basis, service credit is determined using the number of paid hours. Part-time teachers who teach at least 500 hours, have an employment relationship with the employer for at least 120 days, and whose total compensation is equal to or greater than the state minimum salary receive a full year of service credit. Part-time teachers who work at least 500 hours, have an employment relationship with the employer for at least 120 days, but earn less than the state minimum salary, receive credit equal to the greater of: Number of hours 1,000 hours, or Total compensation state minimum salary. Employers Manual Section 7 Page 1 (6/15)

70 The service credit calculation for teachers who work less than 500 hours or the employment relationship is not in effect for at least 120 days is the number of hours of paid service divided by 1,000 hours. Please refer to the Service Credit Decision Tree on Page 3 to assist you in properly calculating service credit. COLLEGE AND UNIVERSITY EDUCATORS Service credit for college and university educators is generally determined on the basis of the institution s full-time equivalent (FTE) workload when the number of days worked is not known. FTE may vary by institution. A full year of service credit is earned when the educator s workload, averaged over two semesters during the fiscal year, exceeds 66% of the FTE. The entire semester must occur within the fiscal year for the educator to receive full credit for that semester. Service credit granted for semesters divided into shorter units (e.g., split summer sessions) is limited to that unit s proportion of a full semester (i.e., 1/2, 1/3, etc.). Earned service credit for summer sessions that overlap fiscal years must be prorated. Credit can be divided between fiscal years by days, weeks or compensation (earnings). For examples of calculating service credit using FTE, please see the Earned Service Credit for College and University Educators fact sheet on the employer website. PARTIALLY PAID LEAVES OF ABSENCE A teacher is not entitled to a full year of service credit when on a leave of absence with partial pay. The compensation paid divided by the annual contract salary should be used to determine service credit. Example $12,000 $30,000 = 40% Partial Pay Contract = Service Credit See Section 10, Absences and Leaves, for information about obtaining service credit for leaves of absence. Section 7 Page 2 (6/15) State Teachers Retirement System of Ohio

71 Service Credit Decision Tree Employed under full-time contract?* No Calculate service credit as part time Number of days or hours recorded by employer? No Calculate percentage of full-time equivalent Yes Greater than.66? No Service credit = actual percentage Number of days recorded by employer? No Yes Yes Service credit = 1.00 Yes Worked at least 120 days? No Taught at least 90 days or 500 hours? No Yes Service credit = 1.00 Yes *Full-time Contract 1. Begins and *Full-time *Full-time ends on first Contract Contract and last day of Begins Begins and and ends ends on on first first and and last last day day of 365-day year, or of 365-day 365-day year, year, or or School School year 180-day year of academic of at at least least year, the the orminimum minimum hours hours required 3-quarter by by law, law, year or or and 2 2 semester academic year and and of full-time 2. Compensation salary = as defined 100% by of full-time salary Employer s as as defined salary by schedule for Employer s teachers working salary every schedule day, for for teachers all day working every day, all all College day, or or or university compensation College for full-time or university workload. compensation for for full-time workload. Note: For members on partially paid leave Note: of Note: absence, For For members service credit on a partially is calculated paid paid leave as leave compensation of absence, service paid credit full-time is calculated contract. as of absence, service credit is calculated as compensation paid full-time contract. compensation paid full-time contract. This decision tree is based on Administrative Code This Rule decision 3307: tree is based It is provided on Administrative as a tool to assist you in understanding the calculation of service credit. Code It is Rule not intended to be It a is comprehensive provided as a tool description to assist of you the in rule. understanding the calculation of service credit. It is not intended to be a comprehensive description of the rule. Employment relationship in effect for at least 120 days of school year? Yes Is total compensation equal to or greater than the state minimum salary? Yes Service credit = 1.00 No Number of days recorded by employer? Yes Service credit = days 180 No Number of days recorded by employer? Yes No No Service credit = hours 1,000 Service credit = greater of actual compensation state minimum salary or hours 1,000 Service credit = greater of actual compensation Worked Number state minimum Service credit = greater any salary of portion days days of 180 No of actual compensation every recorded day of by the state minimum salary employer? school or or hours days 1, year? Yes Service credit = , 6/17/1 (continued) Employers Manual Section 7 Page 3 (6/17) Sample Form (Page 1 Only)

72 STATE MINIMUM SALARIES FOR BACHELOR S DEGREE WITH NO EXPERIENCE Fiscal Year Salary $10, $10, $11, $12, $12, $13, $14, $14, $15, $16, through $16, through $17, through $20,000 Contact STRS Ohio toll-free at for state minimum salaries before , 6/17/35 Section 7 Page 4 (6/17) State Teachers Retirement System of Ohio

73 SECTION 8 ACCOUNT WITHDRAWAL Contents ACCOUNT WITHDRAWAL...1 Defined Benefit Plan...1 Defined Contribution Plan...1 Combined Plan...2 Withdrawal Payments...2 Defined Benefit Plan...2 Defined Contribution Plan...3 Combined Plan...3 Special Tax Notice Regarding Plan Payments...3 APPLICATION...4 Sample Form Application for Withdrawal Payment...5 Employers Manual Section 8 Contents (2/13)

74 State Teachers Retirement System of Ohio

75 ACCOUNT WITHDRAWAL DEFINED BENEFIT PLAN Total accumulated employee contributions may be withdrawn by members upon termination of STRS Ohio service and upon submission of an Application for Withdrawal Payment (see Page 5) to STRS Ohio. The application can be completed in the Online Personal Account area of the member website at Members cannot withdraw their STRS Ohio account if they are under any form of teaching contract, including substitute teaching; are under any type of verbal or written agreement for future teaching with an STRS Ohio employer under the retirement law; are on a leave of absence; are currently receiving service retirement or disability benefits from STRS Ohio; or currently contributing to a college or university alternative retirement plan. Only a transfer of STRS Ohio funds to the alternative retirement plan is permitted. Partial loans or withdrawals cannot be granted. Finally, if a member has terminated employment in an STRS Ohio-covered position, but is working for the same employer in an OPERS or SERS position, he or she cannot withdraw his or her account. Each member should carefully consider any resulting loss of benefits when deciding to withdraw contributions. Withdrawn accounts cannot be restored. Eligible college and university faculty who are active ARP participants cannot receive a direct payment of their refund or roll over their eligible distribution to an individual retirement account (IRA) or an eligible employer plan. If the ARP participant chooses a refund of his or her account, the refund must be transferred to the ARP selected. DEFINED CONTRIBUTION PLAN Contributions may be withdrawn upon termination of STRS Ohio service and upon submission of an Application for Withdrawal Payment (see Page 5) to STRS Ohio. The application can be completed in the Online Personal Account area of the member website at Members cannot withdraw their STRS Ohio account if they are under any form of teaching contract, including substitute teaching; are under any type of verbal or written agreement for future teaching with a board of education or other Ohio public employer; are on a leave of absence; or receiving service retirement benefits from STRS Ohio. Partial loans or withdrawals cannot be granted. Each member should carefully consider any resulting loss of benefits when deciding to withdraw contributions. Withdrawn accounts cannot be restored. Eligible college and university faculty who are active ARP participants cannot receive a direct payment of their refund or roll over their eligible distribution to an IRA or an eligible employer plan. If the ARP participant chooses a refund of his or her account, the refund must be transferred to the ARP selected. Employers Manual Section 8 Page 1 (6/17)

76 COMBINED PLAN Contributions may be withdrawn upon termination of STRS Ohio service and upon submission of an Application for Withdrawal Payment (see Page 5) to STRS Ohio. The application can be completed in the Online Personal Account area of the member website at If members withdraw their accounts before age 50, they must withdraw both the defined benefit and defined contribution portions of their accounts. At age 50 or after, they may withdraw the defined contribution portion upon terminating employment and leave the defined benefit portion on account for a benefit at age 60. They may withdraw the defined benefit portion only if they withdraw the defined contribution portion. Members cannot withdraw their STRS Ohio account if they are under any form of teaching contract, including substitute teaching; are under any type of verbal or written agreement for future teaching with a board of education or other Ohio public employer; are on a leave of absence; or are receiving service retirement or disability benefits from STRS Ohio. Each member should carefully consider any resulting loss of benefits when deciding to withdraw contributions. Withdrawn accounts cannot be restored. Eligible college and university faculty who are active ARP participants cannot receive a direct payment of their refund or roll over their eligible distribution to an IRA or an eligible employer plan. If the ARP participant chooses a refund of his or her account, the refund must be transferred to the ARP selected. WITHDRAWAL PAYMENTS DEFINED BENEFIT PLAN Payments for withdrawals include interest at rates approved by the Retirement Board and, in some cases, matching funds. Interest rates are subject to change without notice. Rates noted below are the maximum allowed by law. Withdrawal payments to members with 5.00 or more years of qualifying service credit,* interest at a rate no greater than 6% compounded annually is payable on your teaching contributions and an additional amount equal to 50% of the sum of teaching contributions, plus interest, is paid. Withdrawal payments to members with at least 3.00 years but less than 5.00 years of qualifying service credit,* interest at a rate no greater than 6% compounded annually is payable on your teaching contributions. Withdrawal payments to members with less than 3.00 years of qualifying service credit,* interest at a rate no greater than 4% compounded annually is payable on your teaching contributions. * Qualifying service credit includes earned credit with STRS Ohio, Ohio Public Employees Retirement System (OPERS) or School Employees Retirement System (SERS); restoration of withdrawn credit with STRS Ohio, OPERS or SERS; interrupted Ohio public service due to military service; and earned credit that transfers from Ohio Police & Fire Pension Fund, Highway Patrol Retirement System or Cincinnati Retirement System. Section 8 Page 2 (6/17) State Teachers Retirement System of Ohio

77 DEFINED CONTRIBUTION PLAN Account withdrawal amounts consist of a portion of member contributions plus any gains or losses on those contributions. Withdrawal amounts will also include the employer portion of the account (consisting of a portion of the employer contributions plus any gains or losses), according to the following vesting schedule: If membership began before July 1, 2013, the member is 100% vested in the employer portion of the account after one year of membership. If membership began on or after July 1, 2013, the member is vested in 20% of the employer portion of the account for each full year of membership. The withdrawal amount may be reduced by fees or early withdrawal penalties. COMBINED PLAN For the defined contribution portion of the account, the withdrawal amount consists of a portion of member contributions plus any gains or losses on those contributions. The withdrawal amount may be reduced by fees or early withdrawal penalties. For the defined benefit portion of the account, members with 5.00 or more years of service credit are eligible for the greater of: (1) the present value of the future benefits, or (2) the member s total contributions to the defined benefit portion of the account. The defined benefit portion of the account consists of the member s total contributions to the defined benefit portion of the account if the member withdraws before accumulating 5.00 years of service credit. SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS Tax laws affect the way eligible rollover distributions are distributed and taxed. In general, the member has three options for receiving payment: a direct rollover to a traditional IRA, a Roth IRA or an eligible retirement plan; all of the payment paid directly to the member; or a portion paid as a rollover with the remaining amount paid directly to the member. The choice will affect the tax treatment of the payment. When the member requests an application for withdrawal, STRS Ohio will send the four-page application and a withdrawal brochure, which includes information about the tax laws and the direct rollover instructions. If a member chooses to complete the withdrawal application online, the tax notice and withdrawal brochure are available in digital format. The tax information supplied to the member can help the member decide how best to receive the payment from STRS Ohio. Employers Manual Section 8 Page 3 (12/16)

78 APPLICATION To withdraw an account, the member must submit a withdrawal application to STRS Ohio. The application includes direct rollover instructions. A brochure is included with the application. Both are also available on the member website at If the member has taught during the last 18 months, the employer must complete the employer certification online and submit it to STRS Ohio. This certification is available in the Withdrawal Certification application in ESS. See the Withdrawal Certification section in the ESS instructions for details about completing this form. The employer should complete the employer certification as soon as proper amounts can be accurately determined. Record the final date of service for which STRS Ohio-contributing compensation was earned and the member s last payroll date. Also, complete the member contributions and service credit for the most recent fiscal year during which the member worked. Taxed employee contributions and tax-deferred contributions should be shown separately on the appropriate lines. The amounts recorded on the employer certification must agree with the amounts reported on the annual report. Contributions and service credit should not be reported to STRS Ohio until the proper amounts can be accurately determined. Employers will be responsible for reimbursing STRS Ohio for any overpayments made to members or beneficiaries as a result of employer reporting errors. College and university employers are also required to record whether the applicant is currently participating in an ARP in an STRS Ohio-covered position, the plan provider and whether the plan can accept a 401(a) transfer. If the member elects a direct payment of the refund, the payment will be sent to the address shown on the member s withdrawal application, unless STRS Ohio receives a written, signed notice from the member of an address change. Payment of an account withdrawal is generally made within three to four weeks after receipt of the valid, properly completed application from the certifying employer or your last payroll date, whichever is later. If the member selects a direct rollover of the refund, the member should first confirm that the IRA or other eligible retirement plan accepts rollovers. The direct rollover instructions (Section 2 of the application) should be completed. Refunds rolled over will be mailed to the eligible retirement plan trustee. The check will be made payable to the eligible retirement plan financial institution or trustee. If only a partial amount of the refund is rolled over, the remaining portion will be sent directly to the member. Any taxable amounts sent directly to the member will be subject to 20% federal income tax withholding. Refund checks for college and university faculty who are actively participating in an ARP will be made payable to and mailed directly to the plan selected. Section 8 Page 4 (11/17) State Teachers Retirement System of Ohio

79 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION FOR WITHDRAWAL PAYMENT SAMPLE For Members Enrolled in the STRS Ohio Defined Benefit, Defined Contribution or Combined Plan Please read the information that accompanies this application before applying for a withdrawal payment. If you decide to withdraw your account, please note: 1. You must sign this application on Page 3 to receive payment. In addition, your affidavit and signature must be notarized if: You are in the Defined Benefit Plan and have 5.00 or more years of total service credit, or You are in the Defined Contribution Plan or Combined Plan and your total withdrawal value is $5,000 or more. 2. If you are married, your spouse s affidavit and notarized signature are required on Page 3 if either of the following is true: You are in the Defined Benefit Plan and are eligible for service retirement, or You are in the Defined Contribution Plan or Combined Plan, you are age 50 or older and your account value is $5,000 or more. 3. If you are in the STRS Ohio Defined Benefit Plan and terminated your employment in an STRS Ohio-covered position but are now working with the same employer in an Ohio Public Employees Retirement System (OPERS) or School Employees Retirement System (SERS) position, then you cannot withdraw your STRS Ohio account. 4. If you were employed in a public or state-supported school in Ohio during the last 18 months, STRS Ohio may need to contact one or more of your recent STRS Ohio-contributing employers to obtain their certification of your termination of employment and final information about your STRS Ohio contributions and earned service credit. Your withdrawal payment cannot be processed until STRS Ohio obtains any needed certifications. 5. Your account withdrawal check will be sent to the address shown on this application unless STRS Ohio receives a written, signed notice of your change of address. The withdrawal check cannot be picked up at the STRS Ohio offices. 6. Federal tax requirements state that account withdrawal checks cannot be issued before 30 days and no later than 180 days from the date STRS Ohio provides special tax information to you (this information accompanies this application). Your signature on Page 3 indicates that you wish to waive the 30-day waiting period. Please call us if you do not wish to waive this waiting period. STRS Ohio issues checks within three to four weeks after receipt of a properly completed application or your last pay date, whichever is later. 7. The signed application must be mailed to: STRS Ohio, 275 E. Broad St., Columbus, OH Special Tax Notice Provided Section 1 General Information (Please use ink.) Member s full name First Middle Maiden Last Social Security number Phone ( ) Area code Home address Street City State ZIP code Date of birth Male Female Are you married? Yes No If yes, please provide spouse s name Are you receiving a monthly retirement benefit from OPERS, SERS, Ohio Police & Fire Pension Fund, Highway Patrol Retirement System, City of Cincinnati Retirement System or an alternative retirement plan established under Ohio Revised Code, Section 3305? Yes No If yes, identify the retirement system and provide the effective date of retirement: System Effective date of retirement If you are in the Combined Plan, are age 50 or older, and have 5.00 or more years of service credit, please check the portion of your account that you would like to withdraw: Defined contribution and defined benefit portions Defined contribution portion only Defined benefit portion only (available if defined contribution portion was previously withdrawn or annuitized) If you are in the Combined Plan and withdraw before age 50 or have less than 5.00 years of service credit, then your withdrawal payment will include both the defined contribution and defined benefit portions of your Combined Plan account , 8/17/1.5M 1 Employers Manual Section 8 Page 5 (11/17) Sample Form (Page 1)

80 Section 2 Direct Rollover or Transfer DIRECT ROLLOVER TO ELIGIBLE RETIREMENT PLAN IMPORTANT Any portion of the account that you do not choose to directly roll over will be paid directly to you. If you do not wish to roll over any portion of your account, do not complete this section and proceed to Section 3. Generally, STRS Ohio is required to withhold 20% of taxable payments paid directly to you for federal income taxes. Please review the accom panying information regarding taxes and penalties that may apply, as well as other important tax provisions. I wish to directly roll over all or part of my eligible account withdrawal to an eligible retirement plan. Retirement plans eligible for direct rollover are either an IRA or an eligible employer plan that will accept the rollover. The rules of the IRA or eligible employer plan that holds the rollover will determine your investment options, fees and rights to payment from the IRA or eligible employer plan (e.g., no spousal consent rules apply to IRAs and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan. (You should confirm that your plan administrator accepts direct rollovers from Section 401(a) employer plans. Please also refer to the accompanying information for tax restrictions applicable to lump-sum payments and rollovers before completing this application.) Last four digits of Name Social Security number Account number of the plan accepting the rollover Type of plan (check one): Traditional IRA Roth IRA 403(b) 457(b) governmental plan 401(a) [including: defined benefit, profit-sharing and governmental pension] 401(k) SEP IRA SIMPLE IRA Rollover distribution to be made payable to: Name of financial institution or plan trustee Attention Address City State ZIP code Complete one: I wish to roll over 100% of my payment (both taxable and nontaxable amounts). I wish to roll over % of my taxable payment and % of my nontaxable payment. I wish to roll over $ of my taxable payment and $ of my nontaxable payment. Any money remaining in your account after the above amounts are rolled over will be paid directly to you and any taxable amounts will be subject to 20% federal income tax withholding. SAMPLE TRANSFER TO ALTERNATIVE RETIREMENT PLAN (FOR COLLEGE AND UNIVERSITY PERSONNEL) IMPORTANT This is the only option available to college or university personnel who are employed full time in an STRS Ohiocovered position and are contributing to an alternative retirement plan. I wish to directly transfer all of my account withdrawal to the alternative retirement plan noted below. I understand that 100% of my withdrawn account will be transferred to the alternative retirement plan. (Please consult with your employer to ensure you are eligible to transfer your account withdrawal to an alternative retirement plan before completing the information below.) Last four digits of Name Social Security number Alternative retirement plan account number: Account transfer to be made payable to: Name of alternative retirement plan NOTE: The direct transfer check will be mailed to the alternative retirement plan , 8/17/1.5M 2 Section 8 Page 6 (11/17) Sample Form (Page 2) State Teachers Retirement System of Ohio

81 Section 3 Affidavit and Notarization MEMBER AFFIDAVIT I certify that I am no longer teaching in an STRS Ohio-contributing position, including substitute teach ing; I am neither under contract nor do I have any verbal or written agreement to teach in an STRS Ohio-contributing position in the future with any board of education or other STRS Ohio employer; and I am not on leave of absence from any STRS Ohio-contributing position. I understand that the withdrawal of my STRS Ohio account cancels all my service credit, all membership privileges and my beneficiary designation. I have reviewed and understand the important information in this Application for Withdrawal Payment, as well as the information that accompanies this application. I understand that my withdrawal is final once the check is issued. I declare that the information submitted on this application is true and accurate. If I am in the Defined Benefit Plan, I certify I am not a member of OPERS or SERS whose employment under OPERS or SERS is with the public employer that was my employer under STRS Ohio at the time my service was terminated. If I am in the Defined Contribution Plan or Combined Plan, I understand that if I have allocated all or part of my account to the STRS Ohio Total Guaranteed Return Choice, and I am withdrawing my account before the end of a five-year term, then I will be assessed an earlyterm withdrawal penalty of 10% of my net asset value on all funds that did not go to term. I also understand that I cannot restore my account if I return to employment in an STRS Ohio-contributing position. IMPORTANT You must sign below to receive payment. In addition, your signature must be notarized below if: (1) you are in the Defined Benefit Plan and have 5.00 or more years of total service credit, or (2) you are in the Defined Contribution Plan or Combined Plan and your total withdrawal value is $5,000 or more. Name of STRS Ohio member (please print) Signature of STRS Ohio member Date Last four digits of Social Security number The individual identified above did personally appear before me and did sign the foregoing instrument by his/her own free act and deed. Sworn to before me and signed this day of in the year State of County of Commission expires Signature of notary public SPOUSAL AFFIDAVIT Notary Seal I certify that my spouse has elected to withdraw his/her STRS Ohio account. I consent to this election by my spouse and understand that my consent is irrevocable. I am aware that withdrawal results in forfeiture of all retirement benefits my spouse has earned and is eligible to receive. It also results in a forfeiture of benefits for a surviving spouse in the event of death. These benefits may include a monthly pension and for members in the Defined Benefit Plan and Combined Plan, may also include access to coverage in the STRS Ohio Health Care Program and survivor benefits. I further understand that if I do not consent, my spouse the STRS Ohio member will receive a benefit paid as a Joint and Survivor Annuity, one-half to me in the event of my spouse s death. I have reviewed and understand the important information in this Application for Withdrawal Payment, as well as the information that accompanies this application. I declare that the information submitted on this application is true and accurate. IMPORTANT Spousal signature is required below and must be notarized if either of the following is true: (1) my spouse, the STRS Ohio member, is in the Defined Benefit Plan and is eligible for service retirement, or (2) my spouse, the STRS Ohio member, is in the Defined Contribution Plan or Combined Plan, is age 50 or older and has an account value of $5,000 or more. SAMPLE Name of spouse (please print) Signature of spouse Date Social Security number The individual identified above did personally appear before me and did sign the foregoing instrument by his/her own free act and deed. Sworn to before me and signed this day of in the year State of County of Commission expires Signature of notary public Notary Seal , 8/17/1.5M 3 Employers Manual Section 8 Page 7 (11/17) Sample Form (Page 3)

82 State Teachers Retirement System of Ohio

83 SECTION 9 EMPLOYER CONTRIBUTIONS Contents EMPLOYER CONTRIBUTIONS...1 Direct Payment of Employer Contributions...1 Retirement Deductions From State Foundation Payments...1 Sample Estimated annual payroll screen...1 Sample Form Retirement Deductions From State Foundation Payments...3 Employers Manual Section 9 Contents (6/15)

84 State Teachers Retirement System of Ohio

85 EMPLOYER CONTRIBUTIONS Every employer, as defined in Section , R.C., is required to pay employer contributions to STRS Ohio based on the compensation of its employees who are STRS Ohio members. The rate of contribution shall be approved by the Retirement Board and, under current Ohio law, may not exceed 14%. Refer to the chart in Section 2, Page 3, for a listing of past contribution rates. DIRECT PAYMENT OF EMPLOYER CONTRIBUTIONS Employer contributions from county boards of education, county boards of developmental disabilities, technical schools, colleges, universities and other public agencies are not deducted from state foundation payments. Instead, these employers pay their contributions directly to STRS Ohio. Generally, the amount of the employer contribution is calculated by applying the current contribution rate to employee earnings. Employer contributions paid directly to STRS Ohio must be remitted with each payroll report (see Section 3). Any employer whose contributions are normally deducted from state foundation payments may choose to supplement its contributions by making payments directly to STRS Ohio. RETIREMENT DEDUCTIONS FROM STATE FOUNDATION PAYMENTS Employer contributions to STRS Ohio for city, local (except county offices), exempted village school districts and community schools are generally deducted from allocated state foundation funds. The contributions are deducted on a calendar-year basis, and STRS Ohio must certify to the Ohio Department of Education in November of each year the amount to be deducted for each participating school district. To calculate the upcoming calendar year contributions, it is necessary for each qualifying district to complete and submit the online estimated annual payroll (see sample below) that is available to each district in late September. Districts are required to estimate their total STRS Ohio payroll for the school year, the percentage change and explain any extraordinary changes, such as an increase greater than 10% or a decrease in the total payroll. Explanations of changes should be ed to report@strsoh.org Estimated annual payroll screen Employers Manual Section 9 Page 1 (6/17) Web Screen

86 A detailed calculation of the amount due is performed for each school district and a copy of the computation is mailed to each employer in December. The following is a line-by-line explanation of the calculation format. A copy of the format is provided on Page 3. Line 1: Line 2: Line 3: Line 4: This amount is carried forward from line 5 of the previous year s calculation. The computation of this line begins with the total employee contributions remitted during the previous fiscal year. Total employee contributions are divided by the current employee contribution rate and then multiplied by the employer contribution rate. Adjustments may be made periodically to employee contributions for previous fiscal years. Examples include contributions paid for prior years leaves of absence, refunds of unauthorized contributions, unpaid employer contributions from previous years, etc. Any amount on this line represents unpaid employer contributions corresponding to such adjustments made during the preceding fiscal year. Payments received during the 12 months preceding Sept. 1 of the current year are shown on this line. The payments for September through December equal line 9 of the previous year s report. January-through-June payments equal 1/2 of the prior year s line 11. Note that these payments are the amounts due to be paid regardless of the amount actually received from the Department of Education. Any unpaid differences are added to the adjustments shown on line 3. Line 5: This amount is the net of lines 1 through 4. Line 6: In October of each year, employers are asked to provide an estimate of total teacher payroll for the current fiscal year (see sample on Page 3). Because this amount is a key figure in the calculation of foundation program deductions, the estimate should be as accurate as possible. Any differences between the estimated and actual payrolls will be carried over to the following year s foundation certification. Line 6 of the calculation shows both the estimated payroll and the amount of the related employer contribution. Line 7: This amount equals 47% of line 6. Line 8: This is the total of lines 5, 6 and 7. Line 9: This amount equals 1/2 of line 11 of the previous year s report and represents payments to be received during the final six months of the current calendar year. Line 10: The net of lines 8 and 9 is recorded here. Line 11: The total amount due is rounded to the nearest whole dollar divisible by 24. (For community schools it is the nearest whole dollar divisible by 12.) Line 12: The semi-monthly foundation deduction. (For community schools it is the monthly foundation deduction.) The amount due for each payment is deducted from each participating school s state funds by the Department of Education and submitted to STRS Ohio. If there are insufficient allocated funds to pay the entire employer contribution, the school treasurer will be notified by both the Department of Education and STRS Ohio. The employer is responsible for paying the shortage directly to STRS Ohio. Section 9 Page 2 (12/16) State Teachers Retirement System of Ohio

87 TREASURER BUCKEYE CITY SCHOOLS 100 MAIN ST. ANYTOWN, OH RETIREMENT DEDUCTIONS FROM STATE FOUNDATION PAYMENTS THE TOTAL AMOUNT OF EMPLOYER CONTRIBUTION TO BE DEDUCTED FROM PAYMENTS DUE YOUR DISTRICT DURING 2017 IS SHOWN BELOW. THIS AMOUNT WILL BE DEDUCTED IN 24 EQUAL PAYMENTS DURING CALENDAR YEAR RECONCILIATION OF PRIOR AMOUNT DUE: 1. BALANCE DUE AND UNPAID JUNE 30, 2015 $517, PLUS EMPLOYER COSTS INCURRED FISCAL YEAR ACCRUED CONTRIBUTIONS $1,148, / 12% 14% CONTRIBUTIONS $7,988, / 13% 14% $9,942, ADJUSTMENT. OTHER COSTS INCURRED FOR CONTRIBUTIONS REPORTED AND/OR PREPAYMENTS $ LESS. FOUNDATION PAYMENTS JULY THROUGH DECEMBER $4,777, FOUNDATION PAYMENTS JANUARY THROUGH JUNE $5,047, BALANCE DUE AND UNPAID JUNE 30, 2016 $634, ESTIMATED FOUNDATION DEDUCTION: 6. PLUS ESTIMATED CHARGE FOR FISCAL YEAR ESTIMATED PAYROLL $73,855, % $10,339, PLUS ESTIMATED CHARGE FOR JULY THROUGH DECEMBER 2017 WHICH IS 47% OF THE ESTIMATED PAYROLL ON LINE 6 14% $4,859, TOTAL ESTIMATED TO BE DUE BY DECEMBER 31, 2017 $15,834, LESS FOUNDATION PAYMENTS JULY THROUGH DECEMBER $5,047, TOTAL ESTIMATED TO BE DUE IN CALENDAR YEAR 2017 $10,786, TO BE DEDUCTED FROM STATE FOUNDATION FUNDS IN 24 EQUAL PAYMENTS $10,786, SEMI-MONTHLY FOUNDATION DEDUCTION $449, Employers Manual Section 9 Page 3 (12/16) Sample Form

88 State Teachers Retirement System of Ohio

89 SECTION 10 ABSENCES AND LEAVES Contents ABSENCES AND LEAVES... 1 Defined Benefit Plan... 1 Defined Contribution Plan... 1 Combined Plan... 1 Partially Paid Absence or Leave... 1 Current Fiscal Year Absence or Leave... 1 Past Absence or Leave... 3 Payment of Employer Contributions... 3 (Defined Benefit and Combined Plans only) NONPAID PROFESSIONAL LEAVES (Defined Benefit Plan only)... 4 Eligibility Requirements... 4 Procedural Requirements... 5 Sample Forms Notification of Professional Leave of Absence... 7 Certification for Nonpaid Professional Leave of Absence From College or University... 9 Sample Letter Nonpaid professional leave letter Employers Manual Section 10 Contents (12/15)

90 State Teachers Retirement System of Ohio

91 ABSENCES AND LEAVES DEFINED BENEFIT PLAN A member of STRS Ohio who is prevented from making member contributions because of illness or injury, or who is granted a leave of absence under Section , or , R.C., or who is granted a leave pursuant to the Family and Medical Leave Act of 1993, may complete contributions or purchase service for the period of absence or leave. The maximum obtainable credit is two years for each period of absence or leave, and the member must have been under contract during the leave. Members on leave or absent from teaching cannot contribute on more than what they would have earned had they continued in their teaching assignment. DEFINED CONTRIBUTION PLAN Members enrolled in the Defined Contribution Plan are not eligible to purchase credit for leaves of absence. COMBINED PLAN Administrative Code Rule 3307: allows members permanently enrolled in the Combined Plan to purchase service credit for leaves of absence under the same criteria as the Defined Benefit Plan members. PARTIALLY PAID ABSENCE OR LEAVE Members who are granted leaves of absence with partial pay are entitled to only a partial year of service credit based on the percentage of leave pay. Members on a leave of absence cannot receive a full year of credit by completing deposits on 120 days. Full credit may be obtained in accordance with procedures outlined in this section. A Notification of Professional Leave of Absence form (see sample on Pages 7 8) should be completed by all college and university teachers who are granted a sabbatical leave of absence under Section , R.C. Completion of the form will establish the member s right to receive full credit for the leave period by paying the required amounts as outlined in this section. CURRENT FISCAL YEAR ABSENCE OR LEAVE If desired by the member, contributions on the amount that would have been earned had the member not been absent may be withheld, in addition to contributions on current earnings, during the fiscal year in which the absence occurred. These contributions should be remitted to STRS Ohio by June 30 of the fiscal year, along with the Lump Sum Purchase of Current Fiscal Year Absence or Leave form. See the Absences and Leaves fact sheet on the employer website for more information. The contributions required to obtain a full year of credit for a leave can be calculated based on compensation the member would have earned had the leave not occurred. The following are examples of the calculations and costs for Defined Benefit Plan members. Employers Manual Section 10 Page 1 (11/17)

92 Example 1 A teacher on an unpaid leave of absence during , who did not work and would have earned $30,000 for that year, could purchase full STRS Ohio service credit by remitting $4,200 to STRS Ohio through the employer by June 30, Earnings had teacher worked...$30, contribution rate...x 14% Contributions required for full year of service credit... $ 4,200 Example 2 A teacher, under contract for $30,000, is on an unpaid leave of absence with employer A during During the leave of absence, the teacher works at employer B and earns.10 of a year of service credit. The following calculation would be used to determine the cost to obtain a full year of STRS Ohio service credit. Contract had teacher worked at employer A...$30,000 % service credit to be purchased...x 90% Earnings to be contributed on...$27, contribution rate...x 14% Contributions required for full year of service credit...$ 3,780 Example 3 A teacher, under contract for $30,000, who worked 80 days and earned $12,900 during and then was on an unpaid leave of absence would have earned.44 of a year of service credit. A full year of STRS Ohio credit can be obtained interest free by remitting contributions on a full year s compensation through the employer by June 30, Earnings had teacher worked...$30,000 Less earnings...$12,900 Earnings to be contributed on...$17, contribution rate...x 14% Contributions required for full year of service credit...$ 2,394 Section 10 Page 2 (6/16) State Teachers Retirement System of Ohio

93 PAST ABSENCE OR LEAVE Service credit may be obtained for leaves or absence due to illness or injury beyond the fiscal year of the absence. However, the procedures and cost are substantially different: The member must have the dates of the absence or leave certified by the employer granting the absence or leave. For this purpose, a Certification of Past Period of Absence form (see sample in Section 11, Pages 3 4) is required. This form is available on the member website. Upon receipt of the completed certification form, STRS Ohio calculates the cost to purchase the service credit. Additionally, the member must pay interest on both the member and employer contributions beginning with the fiscal year following the absence or leave through the last day of the month of purchase. A minimum of one year s interest will be charged. Payment is made directly to STRS Ohio. Note: Past leaves of absence cannot be purchased through a payroll deduction plan. PAYMENT OF EMPLOYER CONTRIBUTIONS (Defined Benefit and Combined Plans only) Under Section , R.C., the employer at the time of the absence or who granted the leave is required to pay employer contributions on the compensation used in determining the member s cost. City, local (except county offices) and exempted village school districts and community schools: If the member completes contributions for a current fiscal year leave or absence, the employer may choose to pay the corresponding employer contribution directly to STRS Ohio at the time the member contributions are submitted. Otherwise, the employer contribution will be added as an adjustment to the next certification of state foundation program deductions. If the member purchases service credit for a past leave or absence directly through STRS Ohio, the employer will be notified of the required employer contribution. That amount will be added as an adjustment to the next certification of state foundation program deductions unless the employer pays such amount directly to STRS Ohio before that time. County boards of education, colleges and universities, technical or vocational schools, county boards of developmental disabilities and other institutions: If the member completes contributions for a current fiscal year absence or leave, the employer should remit the required employer contribution at the same time the member contributions are submitted. If the member purchases service credit for a past absence or leave directly through STRS Ohio, the employer will be billed for the required employer contribution. Payment is due upon receipt of invoice. Employers Manual Section 10 Page 3 (6/16)

94 NONPAID PROFESSIONAL LEAVES (Defined Benefit Plan only) Under certain conditions as defined in Administrative Code Rule 3307:1-3-05, members employed by colleges and universities may complete retirement contributions and obtain credit for periods of absence other than for personal injury or illness. (Credit for periods of absence due to illness or injury is obtainable under Section , R.C.; see corresponding information in this section.) ELIGIBILITY REQUIREMENTS 1. An annual contract for an STRS Ohio-covered position must have been issued for the period of absence. 2. A leave must have been granted by the employer for the purpose of accepting an assignment during the period of absence. Such leaves will not be recognized for a period greater than an accumulated total of two years. 3. Assignments that will be considered for retirement credit are those related to professional duties and responsibilities of members or activities which may be expected to improve the service rendered upon return to employment. 4. Within 12 months following the termination of the leave, the member must resume contributing service with STRS Ohio, OPERS or SERS. 5. The employer granting the leave must agree to make payment of the corresponding employer contribution without reimbursement from the member. 6. The Retirement Board must grant approval for the member to make retirement contributions covering the period of absence. Section 10 Page 4 (6/16) State Teachers Retirement System of Ohio

95 PROCEDURAL REQUIREMENTS To purchase a nonpaid professional leave, the member must: Step 1: Complete the Certification for Nonpaid Professional Leave of Absence From a College or University form (see Pages 9 10). Step 2: Provide the form to the employer to complete the employer certification. Step 3: If the member s request is approved by the Retirement Board, the member will receive a letter from STRS Ohio (see Pages 11 12). Member payment must be made within 60 days of written notification. If payment is made the fiscal year after the leave has occurred, interest is assessed. Step 4: The member will write a check payable to STRS Ohio and give it to the employer. The employer should send the member s check, check for employer contributions and copy of nonpaid professional leave letter to STRS Ohio. Each leave period must be completed on a separate form. For example, if a two-year leave was granted, the dates of the leave would be listed on one form. However, if two one-year leaves were granted, each leave would be listed on a separate form. Employers Manual Section 10 Page 5 (6/15)

96 Section 10 Page 6 (6/13) State Teachers Retirement System of Ohio

97 NOTIFICATION OF PROFESSIONAL LEAVE OF ABSENCE Section , Revised Code (R.C.) This form should be filed with STRS Ohio when the leave is granted and a copy retained by the employer. Member Selection Review the reverse side of this form before making a selection. q I request that member contributions be withheld from my partial earnings based on my full-time contract salary. q Contributions should be based only on my partial earnings during the leave period. I understand that I may remit member contributions, without interest, to my employer based on my full-time contract salary by June 30 of the year in which the leave occurred. Contributions remitted after that time will be subject to interest. I have reviewed the information on the reverse side of this form and I am fully aware of my options for completing contributions on my full-time salary for the period of the leave of absence. Member s name (please print) Date Member s signature Social Security no. Employer Certification This is to certify that, Social Security no., Member s name has been granted a professional leave of absence by College or university pursuant to Section , R.C., for the period beginning Month/day/year and ending. Month/day/year For the STRS Ohio fiscal year beginning July 1,, and ending June 30,, the full-time contract salary (earnings if regular full-time service was to be rendered) is... $. Employer Signature Date Title , 11/15/1 Employers Manual Section 10 Page 7 (12/15) Sample Form (Side 1)

98 PROFESSIONAL LEAVE OF ABSENCE Section , Revised Code (R.C.) Procedural Guidelines A member who is granted a professional leave of absence pursuant to Section , R.C., has the right to maintain full STRS Ohio benefits during the leave of absence. Therefore, at the member s request, the employer must withhold or accept full member contributions on the earnings that would have been paid if regular full-time service had been rendered. The full salary shall also be the basis for the remittance of employer contributions. A member granted a professional leave of absence pursuant to Section , R.C., also has the option to complete contributions on his/her full-time contract salary without interest by June 30 of the year in which the leave occurred. Contributions remitted by the member within this period should be forwarded to the employer. The employer will remit member contributions with related employer contributions to STRS Ohio. After June 30 of the year in which the leave occurred, contributions are subject to interest. The member s cost to complete contributions includes interest on both the member and employer contributions. Members should contact STRS Ohio directly toll-free at to obtain the cost of completing contributions with interest. If the member decides to contribute only on the actual amount of payment received during the professional leave and does not complete contributions at any time, a reduction in benefits may occur: The member may not earn a full year of service credit. The member s continued progression toward benefit eligibility will be interrupted and the level of STRS Ohio disability protection may be reduced. The member s full contract salary will not be used to determine final average salary. This could affect the amount of service retirement, disability and survivor benefits. The number of years of service credit a member may otherwise be eligible to purchase may be diminished , 11/15/1 Section 10 Page 8 (12/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

99 CERTIFICATION FOR NONPAID PROFESSIONAL LEAVE OF ABSENCE FROM A COLLEGE OR UNIVERSITY A member employed by a university, community college, technical college or institute may with State Teachers Retirement Board approval complete retirement contributions and secure retirement credit for nonpaid periods of absence for professional reasons by complying with the following requirements: Eligibility requirements 1. An annual contract for service covered by this system during the year within which the absence occurred. 2. A leave granted by the employer for the purpose of accepting an assignment during such absence. Leaves will not be recognized for a period greater than an accumulated total of two school years. 3. Assignments that will be considered for retirement credit under this rule are those related to professional duties and responsibilities of members, or activities which may be expected to improve the service rendered by a member upon return to employment. 4. Not later than 12 months following termination of the leave, the member must resume contributing ser vice covered by this system, the Ohio Public Employees Retirement System or the School Employees Retirement System. 5. Approval of the employer for the payment of the employer cost without reimbursement from the member. 6. Retirement Board approval for the member to make retirement contributions covering the period of absence. Procedural requirements 1. Subsequent to the termination of the leave, the member must file with the Retirement Board: a. A statement showing the nature and purpose of the assignment during such absence. b. A written request to the Retirement Board for approval of payment by the member of member contributions. c. Certifications from the member s employer as follows: (i) Member s annual contract salary in effect for each year or part of year (July 1 through June 30) in which there was an absence. (ii) Official action of the employer granting the leave stating the beginning date and the termination date. (iii) Official action of the employer approving the payment of the employer cost without reimbursement from the member. 2. If the member pays the member cost to the employer within 60 days of notice of approval from the Retirement Board, the employer shall pay the employer and member costs to STRS Ohio within 30 days after this payment is received. To establish full retirement credit for the leave period, the Administrative Code Rule requires contributions on the full salary that would have been earned if the leave had not occurred. This rule does not permit contributions in excess of that salary. (continued) Employers Manual Section 10 Page 9 (6/14) Sample Form (Side 1)

100 MEMBER S APPLICATION TO MAKE PAYMENT FOR A COLLEGE/UNIVERSITY NONPAID PROFESSIONAL LEAVE OF ABSENCE To be completed by the APPLICANT Please evaluate my eligibility for establishing retirement credit for a past period of absence. I understand I am not under obligation to make payment for all, or any, of this credit; however, if payment is made, this form will certify that I am not receiving, nor will I be eligible to receive, a retirement benefit from another retirement program, other than Social Security, based on this same period of absence. Applicant s name (please print) Member s Social Security number or STRS Ohio account number Street address City, state, ZIP code Phone ( ) Date Area code Applicant s signature The following is a statement of the nature and purpose of assignment during the leave: EMPLOYER CERTIFICATION To be completed by the EMPLOYER WHO GRANTED THE PERIOD OF ABSENCE* 1. The leave of absence was approved for the period beginning Month Day Year and ending, for the purpose of. Month Day Year 2. Member returned to paid service on. Month Day Year 3. Member s annual contract salary in effect for the period of the leave was $. 4. The hereby approves payment of the employer cost without College or university reimbursement from the member. Date Signed Print name and title *Each leave period must be completed on a separate form. For example, if a two-year leave was granted, the dates of the leave would be listed on one form. However, if two one-year leaves were granted, each leave would be listed on a separate form /13/300 Section 10 Page 10 (6/14) Sample Form (Side 2) State Teachers Retirement System of Ohio

101 April 21, , Nonpaid professional leave letter Employers Manual Section 10 Page 11 (6/17) Sample Letter (Side 1)

102 April 21, 2017 Nonpaid professional leave letter Section 10 Page 12 (6/17) Sample Letter (Side 2) State Teachers Retirement System of Ohio

103 SECTION 11 PURCHASING SERVICE CREDIT Contents PURCHASING SERVICE CREDIT...1 Types of Purchasable Service...1 Defined Benefit Plan...1 Defined Contribution Plan...2 Combined Plan...2 Payment Options for Purchasing Service Credit...2 Sample Forms Certification of Past Period of Absence...3 Certification of Resignation or Leave of Absence Due to Pregnancy or Adoption...5 Certification of Ohio Public School Teaching Service Member Did Not Contribute to STRS Ohio...7 Certification of Ohio Public College or University Teaching Service Member Did Not Contribute to STRS Ohio...8 Certification of Other Public Service in Ohio...9 Certification of Nonteaching Public School Service in Ohio on Which No Contributions Were Sent to School Employees Retirement System...11 PURCHASING SERVICE CREDIT THROUGH PAYROLL DEDUCTION (Defined Benefit Plan only)...13 General Provisions...13 Additional Provisions for After-Tax Payroll Deduction Plan...13 Additional Provisions for Tax-Deferred Payroll Deduction Plan...14 Member Requirements for Purchasing Service Credit via Payroll Deduction...15 Employer Requirements for Purchasing Service Credit via Payroll Deduction...15 Application to Purchase Credit Through Payroll Deduction...15 Employers Manual Section 11 Contents (6/17)

104 SECTION 11 PURCHASING SERVICE CREDIT Contents (continued) Monthly Remittance of Payroll Deductions for Purchased Service Credit...16 Sample Forms Application to Purchase Credit Through Payroll Deduction (After-Tax)...17 Application to Purchase Credit Through Payroll Deduction (Tax-Deferred)...19 Application to Purchase Credit Through Payroll Deduction (Choice of After-Tax or Tax-Deferred Plan)...21 Sample Purchase service credit screen...23 Notification of Adoption of a Tax-Deferred Payroll Deduction Plan...24 Confirmation of Tax-Deferred Payroll Deduction Plan...24 Sample Forms Notification of Adoption of a Tax-Deferred Payroll Deduction Plan...25 Sample Board Resolution for Adoption of a Tax-Deferred Payroll Deduction Plan...26 Section 11 Contents (6/17) State Teachers Retirement System of Ohio

105 PURCHASING SERVICE CREDIT Members may be eligible to purchase additional credit in STRS Ohio for certain types of service. Interested members should contact STRS Ohio with questions regarding eligibility, certification requirements and cost. TYPES OF PURCHASABLE SERVICE DEFINED BENEFIT PLAN The following are types of purchasable service. Some purchased service may require employer certification and/or employer contributions: Current fiscal year and past leaves of absence from Ohio public schools. Requires employer certification and employer contributions (see forms on Pages 3 6). See Section 10 for more information. Ohio noncontributing public teaching service. Under Section , R.C., members may be eligible to purchase credit for days of regular or substitute teaching in Ohio public schools, colleges and universities for which they did not previously contribute to STRS Ohio. If the noncontributing service occurred after July 1, 1978, employers will be required to pay the corresponding employer contributions and interest. Employers may be asked to certify the dates of such noncontributing service (see form on Pages 7 8). Other Ohio public service, provided such service is not used in the calculation of any retirement benefit currently being paid or payable in the future. Requires employer certification (see form on Pages 9 10). Previously exempted or waived Ohio public service. Requires employer certification as either or service. (See form on Pages ) Service as an Ohio public school board member. Requires a certification letter from the school district. The following types of purchasable service do not require employer certification or contributions: Regular military service in the U.S. armed forces, including American Red Cross and prisoner-ofwar periods. Interrupted teaching due to military service allows members to purchase credit for periods of employment missed due to being activated for military service. Ohio National Guard or reserve military service, including Ohio Army and Air National Guards, and reserve military service with the U.S. armed forces. Teaching in a public school, college or university in another state, territory or possession of the United States. Teaching in a private school, college or university in the United States. Teaching in a school operated by or for the U.S. government. Other paid public service: service with a governmental agency or subdivision of another state or with the U.S. government. Restoration or transfer of service credit between STRS Ohio and other Ohio retirement systems. Employers Manual Section 11 Page 1 (6/16)

106 DEFINED CONTRIBUTION PLAN Members enrolled in the Defined Contribution Plan are not eligible to purchase service credit with the exception of Ohio teaching service interrupted by military service. Contributions for time spent in military service will be accepted by STRS Ohio under the same terms and conditions as Defined Benefit Plan members. COMBINED PLAN Members enrolled in the Combined Plan are eligible to purchase service credit for leaves of absence and Ohio teaching service interrupted by military service. Contributions for time spent in military service will be accepted by STRS Ohio under the same terms and conditions as Defined Benefit Plan members. Terms and conditions for purchasing a leave of absence in the Combined Plan are the same as in the Defined Benefit Plan with one exception: members can only purchase leaves after they have made their permanent election to the Combined Plan. PAYMENT OPTIONS FOR PURCHASING SERVICE CREDIT Eligible members may purchase service credit by lump-sum payment, payroll deduction or tax-deferred rollover. Lump-sum purchases can be made by a check from the member payable to STRS Ohio; an employer or third-party check payable to the member then endorsed to STRS Ohio; or an employer check payable to STRS Ohio and accompanied by written verification of how the amount is being reported for tax purposes. Upon request, if applicable, STRS Ohio will provide the member a form to initiate the purchase of service credit through payroll deduction (Defined Benefit Plan participants only). See Pages for more information about purchasing service credit through payroll deduction. Members may purchase service credit by rolling over pretax money from the following types of retirement savings plans: 401(a) plans, 403(b) plans, 457(b) governmental plans, 401(k) plans, SEP-IRA, SIMPLE IRA, 403(a) plans and individual retirement accounts. Members should contact STRS Ohio directly for specific rollover procedures. All purchasable service credit must be certified before a member s retirement date and purchased no later than three months following the member s effective date of retirement. Section 11 Page 2 (6/17) State Teachers Retirement System of Ohio

107 CERTIFICATION OF PAST PERIOD OF ABSENCE PART 1 Completed by Member/Applicant (Please see Certification Form Instructions on other side) Please evaluate my eligibility for establishing retirement credit for a past period of absence. I understand I am not obligated to make payment for all, or any, of this credit; however, if payment is made, this form will certify that I am not receiving, nor will I be eligible to receive, a retirement benefit from another retirement program, other than Social Security, based on this same period of absence. Member s name STRS Ohio account no. or Address Social Security no. (last four digits) Street Phone ( ) City State ZIP code Area code address Date PART 2 Completed by Employer Who Granted Period of Absence* (Please return form to member) This is to certify that Social Security no. (last four digits) Applicant s name was on an absence approved by the Board of education, institution or university for the purpose of beginning and ending. Month Day Year Month Day Year Date Print name and title Contract amount for year in which leave begins: $ *Each leave period must be completed on a separate form. For example, if a two-year leave was granted, the dates of the leave would be listed on one form. However, if two one-year leaves were granted, each leave would be listed on a separate form , 1/15/400 Employers Manual Section 11 Page 3 (6/15) Sample Form (Side 1)

108 CERTIFICATION FORM INSTRUCTIONS Certification of Past Period of Absence The Revised Code provides for periods of absence due to the member s own illness, injury or leave granted for education, professional or other purposes. Ohio law allows members to make payment for past periods of absence. This form is to be used to certify a member s past period of absence from a teaching position at a public school or a partially paid professional leave from a college or university in Ohio. A past period of absence means the individual did not complete deposits with an employer before June 30 of the year in which the absence or leave occurred. Certification of Past Period of Absence Part 1 Completed by the member/applicant Part 2 Completed by the employer who granted the period of absence. Each leave period must be completed on a separate form. Submitting Online Open the document on your desktop computer. (For best results, open the document using Adobe Acrobat Reader 8.0 or later.) Save it to your computer. Complete Part 1 of the form and save again. the form as an attachment to the employer who granted the period of absence. Instruct that individual to complete Part 2 and the form as an attachment to both you and forms@strsoh.org. STRS Ohio will send a confirmation within one business day after the form is received. Submitting by Mail Complete Part 1 of the form. Send the form to the employer who granted the period of absence. Instruct that individual to complete Part 2 and return the form to you. Copy the form for your records. Return the original copy of the completed form to STRS Ohio. STRS Ohio will send a confirmation letter after receiving the form. Further Information Further details are available in the Purchasing Service Credit brochure or the Purchasing Service Credit Fact Sheet for Current and Past Leaves of Absence and University Leaves , 1/15/400 Section 11 Page 4 (6/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

109 CertifiCation of resignation or Leave of absence Due to PregnanCy or adoption for a resignation or leave granted before July 1, 1982 section of the revised Code Each period of absence due to pregnancy or adoption must be certified on a separate form. MeMber s application to PurCHase CreDit for resignation Due to PregnanCy or adoption Please evaluate my eligibility and prepare a cost statement for establishing retirement credit for my absence due to pregnancy or adoption. I understand I am not under obligation to purchase all, or any, of this credit. However, if purchase is made, this form will certify that I am not receiving, nor will I be eligible to receive, a retirement benefit from another retirement program, other than Social Security, based on this period of absence. STRS Ohio account no. Applicant s name or Social Security no. (last four digits) Street address City, state, ZIP code Phone ( ) Date Area code Child s birth date Part 1 employer CertifiCation (To be completed by the STRS Ohio reporting employer who accepted the resignation or granted the leave of absence.) This is to certify that, Social Security no. (last four digits), Member name was absent from the beginning Board of education, institution or university See next page for the purpose of. The leave was requested or the notification of resignation received. Name Title Date (See next page for eligibility and procedural requirements.) Date Part 2 employer CertifiCation (To be completed by the first STRS Ohio reporting employer following the absence due to pregnancy or adoption.) This is to certify that, Social Security no. (last four digits), Member name returned to regular employment for the on. Board of education, institution or university Month, year Please list the annual compensation for full-time employment which was or would have been earned during the fiscal year. Name Title Date , 2/16/500 Employers Manual Section 11 Page 5 (12/16) Sample Form (Page 1)

110 information regarding establishing retirement CreDit for an absence Due to PregnanCy or adoption Under Section of the Revised Code, a teacher may purchase retirement credit from an STRS Ohio-covered position for either a resignation or a leave of absence due to pregnancy or adoption that began before July 1, 1982, by fulfilling the following requirements: eligibility requirements Certification of Resignation or Leave of Absence Due to Pregnancy or Adoption Page 2 1. The resignation or leave must have been granted before July 1, The resignation or leave must have been requested before the birth of the child or before the adoption was finalized. 3. The member cannot purchase credit for more than two years of service under Section of the Revised Code. No more than two years may be purchased for one pregnancy or adoption. If two years of credit for a resignation due to pregnancy or adoption has already been purchased, no additional credit for resignation due to pregnancy or adoption can be obtained. Procedural requirements 1. Part 1 Completed by the member. 2. Part 2 Completed by the STRS Ohio reporting employer who granted the resignation or leave of absence. a. If the employer is not able to certify the reason for the absence and the pregnancy resulted in birth, the member must send a photocopy of the child s birth certificate with this form. b. If the employer is not able to certify the reason for the absence and the pregnancy did not result in birth, the member must obtain either a statement from the physician or provide medical records verifying the above. This information and this form, completed as thoroughly as possible, must be sent together to STRS Ohio. c. For a summer birth, the beginning date of the absence should be the last day of the previous year if the absence was requested before the birth of the child. Beginning date should be the first day of the next school year if the leave was requested after the birth of the child. (An absence requested after the birth will not be eligible for purchase.) 3. Part 3 Completed by the STRS Ohio reporting employer to whom the member first returned to regular employment after the resignation or leave of absence. Regular employment is defined as returning to work under contract for 12 or more weeks. If the employer is not able to certify the member s return to regular employment (e.g., the member worked only as a substitute teacher), the employer should return this form to the member with a statement explaining that the employer s records do not indicate that the member returned to regular employment, as defined above. 4. STRS Ohio will evaluate the completed form and, if the member is eligible to purchase credit, will provide the member with a cost statement. 5. If you intend to purchase credit, the service must be certified before your retirement date and purchased no later than three months after retirement. You may wish to delay your retirement if you are unable to complete your purchase before this deadline. CertifiCation form instructions Certification of resignation or Leave of absence Due to Pregnancy or adoption submitting online , 2/16/500 Open the document on your desktop computer. (For best results, open the document using Adobe Acrobat Reader 8.0 or later.) Save it to your computer. Complete Part 1 of the form and save again. the form as an attachment to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 of the form and the form as an attachment to both you and forms@strsoh.org. STRS Ohio will send a confirmation within one business day after the form is received. submitting by Mail Complete Part 1 of the form. Separate and send the form to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 and return the form to you. Copy the form for your records. Send the original copy of the completed form to STRS Ohio. STRS Ohio will send a confirmation letter after receiving the form. further information Further details, including eligibility requirements, are available in the Purchasing Service Credit brochure and the Purchasing Service Credit Fact Sheet Absence Due to Pregnancy or Adoption. Certification of Resignation or Leave of Absence Due to Pregnancy or Adoption Page , 2/16/500 Section 11 Page 6 (12/16) Sample Form (Pages 2 and 3) State Teachers Retirement System of Ohio

111 CERTIFICATION OF OHIO PUBLIC SCHOOL TEACHING SERVICE MEMBER DID NOT CONTRIBUTE TO STRS OHIO Defined Benefit Plan Participants PART 1 Completed by Member (Please see Certification Form Instructions) Member s name STRS Ohio account no. or Address Social Security no. (last four digits) Street City State ZIP code address Phone ( ) Area code Complete name of school (for service being certified) PART 2 Completed by Employer (Please return form to member) This form will certify the above named member was employed for TEACHING SERVICE on which the member DID NOT contribute to STRS Ohio. (Certification must be made from official records by the treasurer or payroll officer.) For Service Before July 1, 1978 Fiscal Years* Hours Employed From To (Complete only if days of Month Year Month Year School Days Employed employment are not available) $ Total Compensation $ $ $ The member will be billed for the member s cost. There is no cost to the employer. Fiscal Years* From To Month Year Month Year For Service On or After July 1, 1978 School Days Employed Hours Employed (Complete only if days of employment are not available) $ $ $ $ Total Compensation If eligible service credit is purchased by the member for noncontributing teaching service occurring after July 1, 1978, the certifying employer will be billed for the corresponding employer cost and interest. *STRS Ohio Fiscal Years Prior to : September through August; : September through June; and thereafter: July through June Employer address Street City State ZIP code Is a valid waiver on file for the above service? Yes No If yes, include a copy of the waiver. Mark No if limits of the waiver were exceeded. Phone ( ) Area code Certifying official Date certified Title , 10/16/250 Employers Manual Section 11 Page 7 (12/16) Sample Form (Page 1)

112 CERTIFICATION FORM INSTRUCTIONS Certification of Teaching Service Member Did Not Contribute to STRS Ohi These forms are to be used to certify public teaching service rendered in an Ohio public school or Ohio public colleg or university for which no retirement contributions were deducted from your pay. Certification Form Instructions Page 2 Certification of Teaching Service Part 1 Completed by the member. - There are two separate forms a certification form for teaching service in an Ohio public school and a certification form for teaching service in an Ohio public college or university. - Please put your name and address on the appropriate form. Part 2 Completed by the employer (for the service you wish to purchase). - There are two sections pertaining to the time of completed service one for service rendered before July 1, 1978, and one for service rendered on or after July 1, The employer must complete the appropriate section from official school records. - The service must be broken down in STRS Ohio fiscal years as shown on the form. - Service at a college or university can be broken down in quarters or semesters, whichever is applicable. Submitting Online Open the document on your desktop computer. (For best results, open the document using Adobe Acrobat Reader 8.0 or later.) Save it to your computer. Complete Part 1 of the appropriate form (Ohio Public School or Ohio Public College or University) and save again. the form as an attachment to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 of the form and the form as an attachment to both you and forms@strsoh.org. STRS Ohio will send a confirmation within one business day after the form is received. Submitting by Mail Complete Part 1 of the appropriate form (Ohio Public School or Ohio Public College or University) Separate and send the form to the former employer covering the service you want to purchase. Instruct the individual to complete Part 2 and return the form to you. Copy the form for your records. Send the original copy of the completed form to STRS Ohio. STRS Ohio will send a confirmation letter after receiving the form. Further Information Further details, including eligibility requirements, are available in the Purchasing Service Credit brochure and the Purchasing Service Credit Fact Sheet for Ohio Noncontributing Public Teaching Service , 10/16/250 CERTIFICATION OF OHIO PUBLIC COLLEGE OR UNIVERSITY TEACHING SERVICE MEMBER DID NOT CONTRIBUTE TO STRS OHIO Defined Benefit Plan Participants PART 1 Completed by Member (Please see Certification Form Instructions) Member s name STRS Ohio account no. or Address Social Security no. (last four digits) Street City State ZIP code address Phone ( ) Area code Complete name of college or university (for service being certified) PART 2 Completed by Employer (Please return form to member) This form will certify the above named member was employed for TEACHING SERVICE on which the member DID NOT contribute to STRS Ohio. (Certification must be made from official records by the treasurer or payroll officer.) For Service Before July 1, 1978 Fiscal Years* (List each quarter/semester on separate line) Percent of Full-Time From To Employment per Quarter or Semester? Quarter/Semester Total Month Year Month Year Position or Title (Example below**) Compensation Quarter Semester % $ Quarter Semester % $ Quarter Semester % $ Quarter Semester % $ The member will be billed for the member s cost. There is no cost to the employer. For Service On or After July 1, 1978 Fiscal Years* (List each quarter/semester on separate line) Percent of Full-Time From To Employment per Quarter or Semester? Quarter/Semester Total Month Year Month Year Position or Title (Example below**) Compensation Quarter Semester % $ Quarter Semester % $ Quarter Semester % $ Quarter Semester % $ If eligible service credit is purchased by the member for noncontributing teaching service occurring after July 1, 1978, the certifying employer will be billed for the corresponding employer cost and interest. *STRS Ohio Fiscal Years Prior to : September through August; : September through June; and thereafter: July through June **Example: Member taught 3 credit hours for one term and 15 credit hours for that term was a minimum full-time teaching load; list as 20% (3 hours 15 hours = 20%). Certification of Ohio Public College or University Teaching Service Member Did Not Contribute To STRS Ohio Page 3 Employer address Street City State ZIP code Is a valid waiver on file for the above service? Yes No Phone ( ) If yes, include a copy of the waiver. Mark No if limits of the waiver were exceeded. Area code Certifying official Date certified Title , 10/16/250 Section 11 Page 8 (12/16) Sample Form (Pages 2 and 3) State Teachers Retirement System of Ohio

113 CERTIFICATION OF OTHER PUBLIC SERVICE IN OHIO Defined Benefit Plan Participants PART 1 Completed by Member (Please see Certification Form Instructions) Member s name STRS Ohio account no. or Address Social Security no. (last four digits) Street City State ZIP code address Phone ( ) Area code PART 2 Completed by Official Employer or Custodian of Records (Please return form to member) Certification must be made from actual payroll records or a legitimate source of documentation. An incomplete or improperly certified form will be returned to the member. Record of Purchasable Service Employer Date of service: From To Month Day Year Month Day Year Calendar Year: Calendar Year: Calendar Year: OPERS waiver or exemption signed?* o Yes o No OPERS waiver or exemption signed?* o Yes o No Job Title: Job Title: Job Title: Earnings (when earned, not when paid) Full Time** Part Time Earnings (when earned, not when paid) Full Time** Part Time OPERS waiver or exemption signed?* o Yes o No Earnings (when earned, not when paid) Full Time** January o o o o o o February o o o o o o March o o o o o o April o o o o o o May o o o o o o June o o o o o o July o o o o o o August o o o o o o September o o o o o o October o o o o o o November o o o o o o December o o o o o o *For the above service, please indicate Yes or No as to whether there was a written Ohio Public Employees Retirement System (OPERS) exemption in effect. If yes, please supply a copy of the exemption. **Full time is defined as providing service for normal working days while employed. A normal working day is service provided for a regular 7.5- to 8-hour day. Employment of other than normal days is part-time service. Part Time , 8/16/500 Employers Manual Section 11 Page 9 (12/16) Sample Form (Page 1)

114 IMPORTANT THESE QUESTIONS MUST BE ANSWERED BY EMPLOYER: 1. Yes No Did the member contribute to Social Security for the service on the previous page? 2. Yes No Was the member a student at the time the service was performed? If Yes, was money actually paid for this service through the payroll system? Yes No 3. Yes No Is the member currently contributing to the Ohio Public Employees Retirement System (OPERS)? Certification of Other Public Service in Ohio Page 2 4. Yes No For the service on the previous page, did the member contribute to any of the Ohio retirement systems listed below? If Yes, identify the system: Ohio Police & Fire Pension Fund Highway Patrol Retirement System Ohio Public Employees Retirement System School Employees Retirement System Municipal system Other, specify: Name Date Official employer or custodian of records Title Department Address Street City State ZIP code Phone ( ) Area code OFFICE USE ONLY Birth date Date of first STRS Ohio service Total STRS Ohio credit TO BE COMPLETED BY OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM The service on this form (please check one): OPERS will give this person credit without charge under Sec Total credit granted is. Cannot be obtained in OPERS due to nonmembership status. Please list the amount of credit that OPERS would have granted had this service been eligible in OPERS: year(s). Regular purchase or Waived/exempted purchase Cannot be obtained in OPERS for reasons other than nonmembership status. Reason: Certified by Date Please return to STRS Ohio , 8/16/500 CERTIFICATION FORM INSTRUCTIONS Certification of Other Public Service in Ohio This form is used to certify nonteaching Ohio public employment with a state, county or city employer, who did not deduct retirement contributions that would have been made to Ohio Public Employees Retirement System. Certification of Other Ohio Public Service in Ohio Part 1 Completed by the member. Part 2 Completed by the employer (for the service you wish to purchase). - The Record of Purchasable Service portion of the form must be completed by the current custodian of records for the former employer. Ohio statute requires all of this information to determine the eligible amount of service credit and cost. - The custodian of records should pay attention to the instructions on the certification form in order to obtain the maximum service credit possible. Submitting Online Open the document on your desktop computer. (For best results, open the document using Adobe Acrobat Reader 8.0 or later.) Save it to your computer. Complete Part 1 of the form and save again. the form as an attachment to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 of the form and the form as an attachment to both you and forms@strsoh.org. STRS Ohio will send a confirmation within one business day after the form is received. Submitting by Mail Complete Part 1 of the form. Separate and send the form to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 and return the form to you. Copy the form for your records. Send the original copy of the completed form to STRS Ohio. STRS Ohio will send a confirmation letter after receiving the form. Further Information Further details, including eligibility requirements, are available in the Purchasing Service Credit brochure and the Purchasing Service Credit Fact Sheet for Other Ohio Public Service Ohio Public Employees Retirement System (OPERS). Certification of Other Public Service in Ohio Page , 8/16/500 Section 11 Page 10 (12/16) Sample Form (Pages 2 and 3) State Teachers Retirement System of Ohio

115 CERTIFICATION OF NONTEACHING PUBLIC SCHOOL SERVICE IN OHIO ON WHICH NO CONTRIBUTIONS WERE SENT TO SCHOOL EMPLOYEES RETIREMENT SYSTEM Defined Benefit Plan Participants Part 1 Completed by Member (Please see Certification Form Instructions) Applicant s name First Middle Last STRS Ohio account number or Social Security number (last four digits) Address Street City State ZIP code address Phone ( ) Area code Part 2 Completed by Official Employer or Custodian of Records (Please return form to member) Certification must be made from actual payroll records or a legitimate source of documentation. An incomplete or improperly certified form will be returned to the member. Employer Applicant s job title RECORD OF PURCHASABLE SERVICE* School Year Salary Salary Salary Salary Salary Salary Salary July August September October November December January February March April May June Yearly Total Days Worked *If the service was after June 30, 1977, please indicate the number of days actually worked , 2/16/500 (continued) Employers Manual Section 11 Page 11 (12/16) Sample Form (Page 1)

116 IMPORTANT THESE QUESTIONS MUST BE ANSWERED BY EMPLOYER: 1. Yes No Did the member contribute to Social Security on the service on the previous page? 2. Yes No Was the member a student at the time the service was performed? If Yes, was money actually paid for this service through the payroll system? Yes No 3. Yes No Is the member currently contributing to the School Employees Retirement System (SERS)? 4. Yes No For the service on the previous page, did the member contribute to any of the Ohio retirement systems listed below? If Yes, identify the system: Ohio Police & Fire Pension Fund Highway Patrol Retirement System Ohio Public Employees Retirement System School Employees Retirement System Municipal system Other, specify: Certification of Nonteaching Public School Service in Ohio on Which No Contributions Were Sent to School Employees Retirement System Page 2 Name Date Official employer or custodian of records Title Department Address Street Address City State ZIP code Phone ( ) Area code OFFICE USE ONLY Birth date Date of first STRS Ohio service Total STRS Ohio credit TO BE COMPLETED BY SCHOOL EMPLOYEES RETIREMENT SYSTEM The service on this form (please check one): Cannot be obtained in SERS due to nonmembership status. Please list the amount of credit that SERS would have granted had this service been eligible in SERS: year(s) Regular purchase or Waived/Exempted purchase Cannot be obtained in SERS for reasons other than nonmembership status. Reason: Certified by Date Please return to STRS Ohio. CERTIFICATION FORM INSTRUCTIONS Certification of Nonteaching Public School Service in Ohio , 2/16/500 This form is used to certify nonteaching Ohio public school service on which no contributions were sent to School Employees Retirement System. Certification of Nonteaching Public School Service in Ohio Part 1 Completed by the member. Part 2 Completed by the employer (for the service you wish to purchase). - The Record of Purchasable Service portion of the form must be completed by the current custodian of records for the former employer. Ohio statute requires all of this information to determine the eligible amount of service credit and cost. - The custodian of records should pay attention to the instructions on the certification form in order to obtain the maximum service credit possible. Submitting Online Open the document on your desktop computer. (For best results, open the document using Adobe Acrobat Reader 8.0 or later.) Save it to your computer. Complete Part 1 of the form and save again. the form as an attachment to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 of the form and the form as an attachment to both you and forms@strsoh.org. STRS Ohio will send a confirmation within one business day after the form is received. Submitting by Mail Complete Part 1 of the form. Separate and send the form to the former employer covering the service you want to purchase. Instruct that individual to complete Part 2 and return the form to you. Copy the form for your records. Send the original copy of the completed form to STRS Ohio. STRS Ohio will send a confirmation letter after receiving the form. Further Information Further details, including eligibility requirements, are available in the Purchasing Service Credit brochure and the Purchasing Service Credit Fact Sheet for Other Ohio Public Service School Employees Retirement System (SERS). Certification of Nonteaching Public School Service in Ohio on Which No Contributions Were Sent to School Employees Retirement System Page , 2/16/500 Section 11 Page 12 (12/16) Sample Form (Pages 2 and 3) State Teachers Retirement System of Ohio

117 PURCHASING SERVICE CREDIT THROUGH PAYROLL DEDUCTION (Defined Benefit Plan only) Pursuant to Section , R.C., and the provisions under Administrative Code Rule 3307:1-3-11, members may purchase additional retirement credit by payroll deduction for most types of purchasable credit. GENERAL PROVISIONS Upon request, STRS Ohio will provide the member a form to initiate the purchase of service credit through payroll deduction. The member shall complete and sign the form, indicating the amount to be deducted monthly, and file the form with the employer. The employer will then complete the form to establish the date deductions are to begin. This date shall be agreed upon by the member and employer, but will not be later than three months after the form is filed with the employer. The employer will then send the form to STRS Ohio. Deductions made by the employer shall be deposited monthly with STRS Ohio no later than the 15th day of the month following the deduction. A member will be eligible for payroll deduction by any one employer for only one type of restoration or purchase at any given time. A member may not simultaneously participate in deductions for the same type of credit. Service credit and contributions will be posted annually by fiscal year to the accounts of participating members. STRS Ohio will prepare a monthly report of participating members based on the payroll deduction forms and designated changes previously submitted by an employer. The payroll deduction for purchase of service credit report is available on ESS. This report will indicate the expected deduction for each participant. The employer shall enter the amount actually deducted and submit the report with payment to STRS Ohio by the 15th day of the following month. Accumulated deductions for the purchase or restoration of service credit are refundable only upon termination of covered employment. However, the cost of credit purchased may be refunded if, upon commencement of a benefit, the credit does not increase the benefit payable. Employers may have two types of payroll deduction plans one after-tax and one tax-deferred or they may elect to offer only one type of plan. ADDITIONAL PROVISIONS FOR AFTER-TAX PAYROLL DEDUCTION PLAN If a member terminates payroll deduction before restoration or purchase of the entire amount of qualifying credit, the credit established to date will be calculated and posted to the member s account. A new application is required for restoration or purchase of additional service credit. Employers Manual Section 11 Page 13 (6/17)

118 The amount of deduction may be changed by the member upon written notice to the employer. However, the monthly amount deducted shall not be less than the applicable minimum. A member may terminate payroll deduction at any time by notifying the employer. Termination of employment will discontinue deduction. Written notice must be given to the employer. ADDITIONAL PROVISIONS FOR TAX-DEFERRED PAYROLL DEDUCTION PLAN (Federal and state taxes would be deferred.) Employers are required to notify STRS Ohio before plan effective date. The employer must pass a resolution that it agrees to deduct and remit the payments on a pretax basis. (See sample resolution on Page 26.) The employer must complete the Notification of Adoption of a Tax-Deferred Payroll Deduction Plan form and submit it, along with a copy of the school board or authorizing resolution, before plan effective date. (See sample form on Page 25.) STRS Ohio will send the employer a confirmation letter upon receipt of notification. The participating member in a tax-deferred plan must irrevocably agree to continue payroll deductions until the purchase is complete or employment is terminated. Members who begin the purchase of credit by tax-deferred payroll deduction cannot make payments directly to STRS Ohio for the same credit. Members cannot change the payment amount and cannot make accelerated or extra payments directly to STRS Ohio for the same credit. Overpayments on tax-deferred payroll deductions will be returned to the employer for proper tax accounting. STRS Ohio agrees to account for designated service credit purchases on a pretax basis but otherwise assumes no further liability. The current or deferred taxation of payments is determined solely by the IRS, and compliance with the guidelines set forth does not guarantee that taxes on payments will be deferred. STRS Ohio may refuse to account for payments on a pretax basis if so directed by the IRS, if guidelines based on the changing state of the law are not allowed, or if the qualified plan status of STRS Ohio is placed in jeopardy. Once a tax-deferred plan is adopted by an employer, STRS Ohio will notify members currently participating in that employer s after-tax payroll deduction plan of the restrictions and options of a tax-deferred plan. Members will be asked to discuss this notice with their employer. Employers should note changes in the member s plan, certify the notice and return it to STRS Ohio. Section 11 Page 14 (6/17) State Teachers Retirement System of Ohio

119 MEMBER REQUIREMENTS FOR PURCHASING SERVICE CREDIT VIA PAYROLL DEDUCTION STRS Ohio will send the member a statement showing the cost per year and total cost to buy service credit. The member will also receive an Application to Purchase Credit Through Payroll Deduction for initiating payroll deductions. This form shows the minimum monthly payment to purchase service credit for different yearly intervals up to the maximum number of years allowed. The member must select a monthly payment equal to or more than the minimum allowable payment and submit the form to the employer. In an after-tax plan, if the member needs to change or stop payroll deductions, written notice must be given to the employer. EMPLOYER REQUIREMENTS FOR PURCHASING SERVICE CREDIT VIA PAYROLL DEDUCTION A completed Application to Purchase Credit Through Payroll Deduction showing the amount and date deductions are to begin must be submitted for each member. The form must be sent to STRS Ohio with the first month s payroll deductions provided the payment equals or exceeds the minimum payment specified. Deductions must begin no later than three months after the application is filed with the employer. The payroll deduction for purchase of service credit report will be sent to employers. This report will list all members purchasing service credit and expected deductions. The employer should record any changes and additions and submit the report and payment to STRS Ohio no later than the 15th of the following month. See Page 16 of this section for information about completing and submitting this report online. Interest will be charged at a rate specified by the Retirement Board on all payroll deductions received after the due date. APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION The Application to Purchase Credit Through Payroll Deduction is available to members upon request by calling STRS Ohio toll-free at The form includes a table showing the minimum monthly payment to purchase service credit over different payment intervals. The member should complete the form by indicating the amount of monthly deduction and submit the form to the employer. The employer should show the date deductions will begin and the monthly amount to be withheld. The form should then be submitted to STRS Ohio with the first month s payroll deduction provided the payment equals or exceeds the minimum payment specified. There are three versions of this form: 1. For members employed by employers offering only an after-tax plan. (See sample form on Pages ) Employers Manual Section 11 Page 15 (6/17)

120 2. For members employed by employers offering only a tax-deferred plan. (See sample form on Pages ) 3. For members employed by employers offering both an after-tax and tax-deferred plan. (See sample form on Pages ) MONTHLY REMITTANCE OF PAYROLL DEDUCTIONS FOR PURCHASED SERVICE CREDIT The payroll deduction for purchase of service credit report will be sent to employers listing all members who are purchasing service credit and the expected deductions. In addition to remitting payroll deduction payments, this report must be completed and returned to STRS Ohio monthly. If the amount of the deduction is different from the expected amount, the Amount Deducted column should be modified. An employer should remit a monthly payment amount greater than or equal to the minimum payment allowed. If the payment is less than the minimum allowed, STRS Ohio will return the payment to the employer. The member will then have to file a new application before any additional payments will be accepted. New members may be added to the monthly remittance form as long as the Application to Purchase Credit Through Payroll Deduction has been submitted for each participant and the actual deduction equals or exceeds the minimum deduction. The purchase service credit report also allows employers to view final payment information for members who are within three months of making final payments. Employers must submit this information through the employer website using ESS. See sample screen on Page 23. Section 11 Page 16 (6/17) State Teachers Retirement System of Ohio

121 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION For the purchase of 100% Liability Service JOHN LEARN Date: 02/13/ WESTGATE AVE. Ref # COLUMBUS, OH Member ID: If you want to purchase your credit by payroll deduction, forward Pages 1 and 2 to your employer and keep a copy for your records. Service credit eligible for purchase (years) Assuming payroll deductions begin in... April 2017 Minimum monthly payroll deduction... $ Below are some payment schedule options for purchasing 1.00 year of service credit by payroll deduction beginning in April Payment Period Monthly Payment Final Payment Total Payment (Months) 12 $1, $1, $14, $ $ $15, $ $ $15, Terms are based on the assumption that each payment is received every month in the same amount, for the duration of the payment period. Any future changes to interest rates will affect the length of time needed to complete the purchase. STRS Ohio will notify you of any changes to the cost calculation. If you would like to see payment schedules for a different amount of service credit, payment amount or payment period, please contact our Member Services Center toll-free at If payments are not completed by your retirement date, you must pay any remaining balance for service you wish to purchase with a lump-sum payment within three months following your retirement date. Ref # Page 1 of 2 Member ID: Employers Manual Section 11 Page 17 (6/17) Sample Form (Side 1)

122 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION JOHN LEARN Part A To be completed by the member: For the purchase of 100% Liability Service 1. Your employer offers an after-tax installment plan. 2. Enter amount authorized to be deducted monthly by your $ employer. (The amount cannot be less than $ ) 3. Credit to be purchased 1.00 Credit must be purchased in whole-year increments or the total eligible credit. If you are only eligible for a partial year of credit, you may only purchase the entire amount. I hereby certify that I reviewed the information in the enclosed summary, Questions and Answers About Buying Credit, and all pages of this application. I also certify that the above years of service are not being used, have not been used nor will be used in the future under any other retirement program except Social Security. I understand that: Any future changes in interest rates will affect the length of time needed to complete the purchase. This credit will not be used to qualify for access to health care coverage. Member s signature: Date: Part B To be completed by the employer: BUCKEYE UNIVERSITY C001 I certify that the monthly payroll deductions for JOHN LEARN in the amount of $ will begin April I agree that the amounts shall be sent to STRS Ohio in accordance with Administrative Code Rule 3307: This form will be sent to STRS Ohio no later than the date of the first scheduled payment. Treasurer/Payroll officer signature: Date: Refer to Page 1 for total amount payable for the selected monthly payment or contact STRS Ohio after the first payment is made. Ref # Page 2 of 2 Member ID: Section 11 Page 18 (6/17) Sample Form (Side 2) State Teachers Retirement System of Ohio

123 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION For the purchase of 100% Liability Service SUSAN LEARN 123 FIRST AVE. COLUMBUS, OH Date: 05/08/ /07/ If you want to purchase your credit by payroll deduction, forward Pages 1 and 2 to your employer and keep a copy for your records. Service credit eligible for purchase (years) Assuming payroll deductions begin in... June 2017 Minimum monthly payroll deduction... $ Below are some payment schedule options for purchasing 1.00 year of service credit by payroll deduction beginning in June Payment Period Monthly Payment Final Payment Total Payment (Months) 12 $ $ $7, $ $ $8, $ $ $8, Terms are based on the assumption that each payment is received every month in the same amount, for the duration of the payment period. Any future changes to interest rates will affect the length of time needed to complete the purchase. STRS Ohio will notify you of any changes to the cost calculation. If you would like to see payment schedules for a different amount of service credit, payment amount or payment period, please contact our Member Services Center toll-free at If payments are not completed by your retirement date, you must pay any remaining balance for service you wish to purchase with a lump-sum payment within three months following your retirement date. Ref # Page 1 of 2 Member ID: Employers Manual Section 11 Page 19 (6/17) Sample Form (Page 1)

124 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION SUSAN LEARN Part A To be completed by the member: For the purchase of 100% Liability Service 1. Your employer offers a tax-deferred installment plan. You will NOT be able to: Stop or change the payment amount until the purchase is complete or employment terminates, or you retire. Make a lump-sum payment for the same service you are purchasing under this plan. 2. Enter amount authorized to be deducted monthly by your $ employer. (The amount cannot be less than $ ) 3. Credit to be purchased 1.00 Credit must be purchased in whole-year increments or the total eligible credit. If you are only eligible for a partial year of credit, you may only purchase the entire amount. I hereby certify that I reviewed the information in the enclosed summary, Questions and Answers About Buying Credit, and all pages of this application. I also certify that the above years of service are not being used, have not been used nor will be used in the future under any other retirement program except Social Security. I understand that: Any future changes in interest rates will affect the length of time needed to complete the purchase. This credit will not be used to qualify for access to health care coverage. Member s signature: Date: Part B To be completed by the employer: BUCKEYE LOCAL SCHOOLS C001 I certify that the monthly payroll deductions for SUSAN LEARN in the amount of $ will begin June I agree that the amounts shall be sent to STRS Ohio in accordance with Administrative Code Rule 3307: This form will be sent to STRS Ohio no later than the date of the first scheduled payment. Treasurer/Payroll officer signature: Date: Refer to Page 1 for total amount payable for the selected monthly payment or contact STRS Ohio after the first payment is made. Ref # Page 2 of 2 Member ID: Section 11 Page 20 (6/17) Sample Form (Page 2) State Teachers Retirement System of Ohio

125 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION For the purchase of Restored OPERS Service Credit JANE DOE 123 MAIN ST. COLUMBUS, OH Date: 04/28/2017 If you want to purchase your credit by payroll deduction, forward Pages 1 and 2 to your employer and keep a copy for your records. Service credit eligible for purchase (years) Assuming payroll deductions begin in... May 2017 Minimum monthly payroll deduction... $ Below are some payment schedule options for purchasing 3.09 years of service credit by payroll deduction beginning in May Payment Period Monthly Payment Final Payment Total Payment (Months) 48 $ $ $30, $ $ $35, $ $ $40, $ $ $46, $ $ $51, Terms are based on the assumption that each payment is received every month in the same amount, for the duration of the payment period. Any future changes to interest rates will affect the length of time needed to complete the purchase. STRS Ohio will notify you of any changes to the cost calculation. If you would like to see payment schedules for a different amount of service credit, payment amount or payment period, please contact our Member Services Center toll-free at If payments are not completed by your retirement date, you must pay any remaining balance for service you wish to purchase with a lump-sum payment within three months following your retirement date. Ref # Page 1 of 2 Member ID: Employers Manual Section 11 Page 21 (6/17) Sample Form (Page 1)

126 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH JANE DOE APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION Part A To be completed by the member: For the purchase of Restored OPERS Service Credit 1. Your employer offers both after-tax and tax-deferred installment plans. If you choose a taxdeferred installment plan, you will NOT be able to: Stop or change the payment amount until the purchase is complete or employment terminates, or you retire. Make a lump-sum payment for the same service you are purchasing under this plan. Choose one plan: q Regular (after-tax) q Tax-deferred (pretax) 2. Enter amount authorized to be deducted monthly by your $ employer. (The amount cannot be less than $ ) 3. Enter number of years to be purchased. (Total credit eligible on this statement is 3.09 years.) I hereby certify that I reviewed the information in the enclosed summary, Questions and Answers About Buying Credit, and all pages of this application. I also certify that the above years of service are not being used, have not been used nor will be used in the future under any other retirement program except Social Security. I understand that: Any future changes in interest rates will affect the length of time needed to complete the purchase. Member s signature: Date: Part B To be completed by the employer: BUCKEYE CITY SCHOOLS C001 I certify that the monthly payroll deductions for JANE DOE in the amount of $ will begin May I agree that the amounts shall be sent to STRS Ohio in accordance with Administrative Code Rule 3307: This form will be sent to STRS Ohio no later than the date of the first scheduled payment. Treasurer/Payroll officer signature: Date: Refer to Page 1 for total amount payable for the selected monthly payment or contact STRS Ohio after the first payment is made. Ref # Page 2 of 2 Member ID: Section 11 Page 22 (6/17) Sample Form (Page 2) State Teachers Retirement System of Ohio

127 07/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/2017 Purchase service credit report screen Employers Manual Section 11 Page 23 (6/17) Web Screen

128 NOTIFICATION OF ADOPTION OF A TAX-DEFERRED PAYROLL DEDUCTION PLAN The Notification of Adoption of a Tax-Deferred Payroll Deduction Plan form (see sample on Page 25) should be completed by employers who choose to offer a tax-deferred payroll deduction plan. It should be submitted to STRS Ohio at least 60 days before the effective date of the plan. Along with this form, the employer should submit the board resolution adopting the plan. A sample resolution is provided on Page 26. CONFIRMATION OF TAX-DEFERRED PAYROLL DEDUCTION PLAN After STRS Ohio receives the Notification of Adoption of a Tax-Deferred Payroll Deduction Plan form and board resolution, a confirmation letter is sent to the employer. Section 11 Page 24 (6/17) State Teachers Retirement System of Ohio

129 NOTIFICATION OF ADOPTION OF A TAX-DEFERRED PAYROLL DEDUCTION PLAN Employer Employer no. Address City ZIP code This notification form and a copy of the board resolution and minutes must be received by STRS Ohio before the plan effective date. In accordance with IRS regulations governing employer pickup and STRS Ohio laws and rules, a tax-deferred deduction plan has been adopted. Attached is a copy of the resolution authorizing the plan and board minutes showing approval of the plan. By adopting such a plan, we agree to administer the plan in accordance with IRS regulations and STRS Ohio laws and rules. It is understood that: Once an employee begins the purchase of credit by tax-deferred payroll deduction, it is irrevocable. An employee cannot stop or change payments until the purchase is complete or employment is terminated; Employees who begin the purchase of credit by tax-deferred payroll deduction cannot make payments directly to STRS Ohio for the same credit; and Overpayments on tax-deferred payroll deductions will be returned to the employer for proper tax accounting. Employers offering only a tax-deferred plan should note that deductions for all employees participating in payroll deduction must be on a pretax basis as of the effective date of the plan. The adopted plan is effective on We will offer (check one): q Only a tax-deferred payroll deduction plan. q Both tax-deferred and after-tax plans. Certified by Title Date /12/25 Employers Manual Section 11 Page 25 (6/14) Sample Form

130 Sample Board Resolution for Adoption of a Tax-Deferred Payroll Deduction Plan Tax-Deferred Payroll Deduction Plan Whereas under Section , Revised Code, authorizes STRS Ohio to establish by rule payroll deduction plans for payment of the cost of restoring service credit under Sections or , R.C., or purchasing any service credit members of STRS Ohio are eligible to purchase under Chapter 3307, R.C.; and Whereas State Teachers Retirement Board Rule 3307:1-3-11(M) and Internal Revenue Code Section (414)(h)(2) permit (employer board name) to pick up the employee portion of contributions to STRS Ohio made for the purpose of restoring service credit or purchasing service credit, thereby resulting in tax deferral of employee contributions; and Whereas these picked-up contributions, although designated as employee contributions, are being paid by (employer board name) in lieu of employee contributions; and Now therefore be it resolved that in order to permit tax deferral of the employee contributions for restored or purchased service credit, any employee who is eligible and wishes to restore or purchase service credit by payroll deduction must enter into a binding irrevocable payroll deduction authorization and the employee may not opt out of having the contributions for such restored or purchased service credit treated as picked-up contributions or elect to receive the amounts directly instead of having them paid by (employer board name) to STRS Ohio or terminate or alter the payroll deduction until the service credit is fully restored or purchased or employment is terminated; Be it further resolved that the amounts herein specified, which shall be deducted from the employee s salary through payroll deduction, are designated as being picked-up contributions by (employer board name) and paid by (employer board name) in lieu of employee contributions in accordance with Internal Revenue Code Section 414(h)(2). This resolution adopted by (employer board name) shall have an effective date of.* (prospective date) *Employers must notify STRS Ohio prior to the effective date of the resolution. This sample resolution is provided for your convenience and does not constitute tax or legal advice. Although we have attempted to provide accurate information, STRS Ohio cannot guarantee tax results in any way or be held responsible for any loss incurred as a result of the use of this information. Contact your tax advisor or legal counsel for specific information about how this information might affect your situation. Section 11 Page 26 (6/14) Sample Form State Teachers Retirement System of Ohio

131 SECTION 12 SERVICE RETIREMENT FOR SECTION 13 DEFINED BENEFIT PLAN SECTION 13 MEMBERS Contents SERVICE RETIREMENT FOR DEFINED BENEFIT PLAN MEMBERS...1 Member Eligibility Requirements...1 Retirement Effective Date...1 Application for Service Retirement...2 Employer Procedures...2 Joint Retirement With OPERS/SERS...2 Health Care Coverage...3 Employers Manual Section 12 Contents (6/17)

132 State Teachers Retirement System of Ohio

133 SERVICE RETIREMENT FOR DEFINED BENEFIT PLAN MEMBERS MEMBER ELIGIBILITY REQUIREMENTS A member enrolled in the Defined Benefit Plan is eligible for service retirement according to the following criteria: Retirement Between Unreduced Benefit Minimum Age and Years of Service 8/1/2017 7/1/2019 Any age and 32 yrs.; or age 65 and 5 yrs. 8/1/2019 7/1/2021 Any age and 33 yrs.; or age 65 and 5 yrs. 8/1/2021 7/1/2023 Any age and 34 yrs.; or age 65 and 5 yrs. Actuarially Reduced Benefit* Minimum Age and Years of Service Any age and 30 yrs.; or age 55 and 27 yrs.; or age 60 and 5 yrs. Any age and 30 yrs.; or age 55 and 28 yrs.; or age 60 and 5 yrs. Any age and 30 yrs.; or age 55 and 29 yrs.; or age 60 and 5 yrs. 8/1/2023 7/1/2026 Any age and 35 yrs.; or age 65 and 5 yrs. Any age and 30 yrs.; or age 60 and 5 yrs. 8/1/2026 Age 60 and 35 yrs.; or age 65 and 5 yrs. Any age and 30 yrs.; or age 60 and 5 yrs. * An actuarially reduced benefit reflects a reduction for each year that a member retires before meeting eligibility for an unreduced benefit. RETIREMENT EFFECTIVE DATE The retirement effective date is the date benefits begin, not the last day of employment. It is the first day of the month following the latter of: The last day of teaching or other Ohio public service, or Attainment of age and service requirements. Returning to Ohio public employment Under Ohio law, a retiree must wait two full months before returning to Ohio public employment. If a retiree returns to work during the waiting period, the retiree forfeits retirement benefits for each month of employment during the violation period. There must be a minimum of a one-day break in service between the last day of employment as an active member and the first day of employment as a reemployed retiree. If there is no break in employment, the member will be ineligible for retirement. This break must be a normal workday and cannot be a Saturday, Sunday or holiday. (See Section 16 for information about the employment of Ohio public retirees.) Employers Manual Section 12 Page 1 (6/17)

134 APPLICATION FOR SERVICE RETIREMENT Members should obtain a Service Retirement Application directly from STRS Ohio at least three months, but no more than 12 months, before their retirement date. The application is available in the Online Personal Account area of the member website at Benefit estimates are available upon request by calling toll-free Members may also schedule an appointment with a benefits counselor by calling this number. If a fully completed application is received at least 30 days before the retirement date, STRS Ohio may issue a benefit payment on the retirement date. If the actual benefit amount is not calculated by the retirement date, a partial payment may be issued. When the actual benefit amount is determined, any adjustments will be made retroactive to the retirement date. STRS Ohio benefits are paid on the first of each month. If the member enrolls in the STRS Ohio Health Care Program, coverage begins on the retirement date or the first of the month after the retirement application is received and approved, whichever is later. If the STRS Ohio member is also a member of another Ohio retirement system and files for joint retirement, the benefit is paid by the system in which the greatest amount of service credit has been earned. EMPLOYER PROCEDURES After receiving a completed Service Retirement Application from the member, STRS Ohio will send a deposit and service report to the member s employer approximately 60 days before the retirement date. The form should be completed and returned to STRS Ohio as soon as the requested information is available but no later than two weeks after the member s effective retirement date. See Section 6 for more information about completing this form. JOINT RETIREMENT WITH OPERS/SERS Service credit in a defined benefit plan with OPERS and SERS can be combined with STRS Ohio service credit at the time the member retires. The benefit is calculated and paid by the system in which the greatest amount of service credit is established. Please note the following restrictions on combining service credit: Postretirement employment restrictions of all retirement systems in which the member earned credit apply to joint retirees. A member cannot earn more than one year of service credit per fiscal year (July 1 June 30) in one, two or all three public retirement systems combined. Service credit in OPERS or SERS that is concurrent or overlapping with 1.00 year of STRS Ohio credit does not provide additional service credit to a member s account. Service credit in OPERS or SERS that is not concurrent with STRS Ohio credit may be combined to determine total number of years of service credit with STRS Ohio. If the member does not combine the accounts at retirement, the FAS will be based solely on his or her STRS Ohio earnings. Section 12 Page 2 (12/16) State Teachers Retirement System of Ohio

135 HEALTH CARE COVERAGE Members who retire on or after Jan. 1, 2004, and before Aug. 1, 2023, must have at least 15 years of service credit to have access to the STRS Ohio Health Care Program (medical, dental and vision plans). Members who retire on or after Aug. 1, 2023, must have at least 20 years of service credit. Under Administrative Code Rule 3307: , reemployed retirees qualify for only secondary health care coverage from STRS Ohio if they: Are eligible for health care coverage through their employer, or Hold a position for which other similarly situated employees are eligible for health insurance at the same cost as full-time employees. The rule applies to all reemployed retirees who are not eligible for Medicare, regardless of hire date or type of employment. Also, the rule applies only when the employer plan provides both medical and prescription drug coverage. Health care is not a guaranteed benefit, and STRS Ohio rules and policies relating to health care plans, premiums and eligibility are subject to change. Dental and vision plans are also available to benefit recipients and eligible dependents. Members who have questions about the STRS Ohio Health Care Program should call the Member Services Center toll-free at Employers Manual Section 12 Page 3 (6/16)

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137 SECTION 13 DISABILITY BENEFIT PROGRAM Contents DISABILITY BENEFIT PROGRAM...1 Retirement Plan Eligibility...1 Defined Benefit and Combined Plans...1 Defined Contribution Plan...1 Disability Allowance and Disability Retirement...1 Member Eligibility Requirements...1 Joint Retirement With OPERS/SERS...2 Application for Disability Benefits...2 Continuing Eligibility Requirements and Termination...3 Employment While Receiving Disability Benefits...4 Sample Form Report by Employer...5 Employers Manual Section 13 Contents (6/15)

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139 DISABILITY BENEFIT PROGRAM RETIREMENT PLAN ELIGIBILITY DEFINED BENEFIT AND COMBINED PLANS STRS Ohio s disability benefit program is available to those members enrolled in the Defined Benefit and Combined Plans. DEFINED CONTRIBUTION PLAN Members enrolled in the Defined Contribution Plan are ineligible for STRS Ohio s disability benefit program, but do have access to the value of their account balance. Defined Contribution Plan members may terminate employment and withdraw their account. At age 50, other payment options are available, but employment must first be terminated. DISABILITY ALLOWANCE AND DISABILITY RETIREMENT STRS Ohio has two disability benefit programs: disability allowance and disability retirement. Teachers who became STRS Ohio members after July 29, 1992, and Combined Plan members who qualify for disability benefits automatically participate under the disability allowance program. Teachers who were STRS Ohio members on or before July 29, 1992, chose the disability program in which they want to participate. The medical criteria for both programs are that a disabling medical condition prevents the individual from performing his or her most recent job duties and the condition is expected to last at least 12 months from the date STRS Ohio receives the completed application. MEMBER ELIGIBILITY REQUIREMENTS To qualify for disability benefits, an STRS Ohio member must: Meet either of the following: Existing members on June 30, 2013, must have at least 5.00 years of qualifying service credit* on account with STRS Ohio and submit a completed application packet within two years of the last date of earned service. New members on or after July 1, 2013, must have at least years of qualifying service credit* on account with STRS Ohio and submit a completed application packet within one year of the last date of earned service. Not be receiving service retirement benefits. Please note, there are additional eligibility requirements that must be met under each program. Members should contact the Member Services Center toll-free at to determine program eligibility. * Qualifying service credit includes earned credit with STRS Ohio, Ohio Public Employees Retirement System (OPERS) or State Employees Retirement System (SERS); restoration of withdrawn credit with STRS Ohio, OPERS or SERS; interrupted Ohio public service due to military service; and earned credit that transfers from Ohio Police & Fire Pension Fund, Highway Patrol Retirement System or Cincinnati Retirement System. Employers Manual Section 13 Page 1 (6/17)

140 JOINT RETIREMENT WITH OPERS/SERS Credit in STRS Ohio, OPERS and SERS may be combined to qualify for disability benefits under either disability program, unless the member is enrolled in the Combined Plan. The member must contact the system where they have the most service credit for an application. The system with the most service will determine and pay the disability benefit. APPLICATION FOR DISABILITY BENEFITS Application may be filed by a member or a person acting on the member s behalf. An Authorization for Release of Retirement Account Information form must be completed and submitted to STRS Ohio before the application can be discussed with anyone other than the member. The member should apply for disability retirement in a timely manner to avoid exhausting sick leave before the application process is complete. Due to the number of different review processes, members should allow at least four to six months for consideration of a disability application. Listed below are the steps to follow when applying for disability retirement. A presentation providing an overview of the application process is available by selecting Videos under Resources on the STRS Ohio member website at Application procedures for disability benefits under both the disability allowance and disability retirement programs are as follows: 1. The member contacts STRS Ohio to request a Disability Application Packet. 2. To apply for disability benefits, the member must submit: Disability Benefit Application, Report by Employer (see form on Pages 5 6), Attending Physician s Report, and A copy of his or her most recent official job description is also needed, but should be sent directly to STRS Ohio by the member s employer. 3. The member is examined by an independent medical examiner located in the Columbus, Ohio, area and chosen by STRS Ohio. STRS Ohio pays the examiner s fee, but not the member s travel expenses. 4. STRS Ohio s Medical Review Board may recommend a period of medical treatment for up to six months before a recommendation is made to the Retirement Board. 5. The Medical Review Board evaluates the applicant s medical records and makes a recommendation to the Retirement Board. 6. If the Medical Review Board chair recommends approval of the application, the member must stop working by the end of that month. 7. The Retirement Board determines whether the application for disability benefits is approved. 8. A deposit and service report will be sent to the employer for completion if disability benefits are approved under either program (see Section 6 for more information about this report). 9. Under either program, if approved, disability benefits begin on the first day of the month following the latter of (a) the last day for which compensation was paid, or (b) the date on which the member s most recent disability application was received by STRS Ohio. If currently employed, the member will decide whether to exhaust sick leave benefits before assuming disability benefits. Section 13 Page 2 (6/17) State Teachers Retirement System of Ohio

141 10. If the disability application is not approved, information about the appeal process is mailed to the member. 11. Under either program, if disability benefits are not approved, the employer will be notified. CONTINUING ELIGIBILITY REQUIREMENTS AND TERMINATION Requirements are the same under both disability programs: Medical exams will be required when requested by STRS Ohio. If the member is found to be capable of returning to work, payments could end as early as the first of the month following the Retirement Board action terminating the member s disability. The Retirement Board may act on these cases at any time throughout the year, not necessarily waiting until the end of the school year. STRS Ohio will notify the previous employer of the termination if the member s five-year leave of absence has not expired. Disability benefits terminate: If the member performs any teaching service in a public or private setting, school or nonschool setting, on a volunteer basis or for compensation, in or outside the state of Ohio (see Employment While Receiving Disability Benefits on Page 4); If the member s disability benefit was on a combined basis with OPERS and/or SERS and the member becomes employed in a position covered by one of those systems; At the request of the member; If a medical reexamination shows the member is no longer disabled; If the member is not following an agreed-upon treatment plan or does not submit required medical reports; or If the member has not filed the Statement of Employment and Earnings After Receipt of a Disability Benefit form. If disability benefits terminate, a member may: 1. Apply for service retirement if eligibility require ments have been met. The percentage used in calculating a member s service retirement benefit will be based on the total number of years of service credit (excluding years on disability retirement). 2. Become inactive and apply for service retire ment when eligible. 3. Return to teaching. A member who was under contract when dis ability benefits were granted and who has not resigned is considered on a leave of absence from his or her position during the first five years following the effective date of disability benefits. If disability benefits are terminated by the Retirement Board within the five-year period, the member is entitled to employment in the same or a similar position and at the same salary no later than the next Sept. 1, unless the member was dismissed, resigned or does not hold a valid teaching license. A member who returns to public employment following termination of disability benefits and earns two years of Ohio service credit in STRS Ohio, OPERS or SERS receives credit toward service retirement for the time on disability. The total credit granted will be the lesser of the time on disability, five years or credit to match the amount of time the member returned to work. Employers Manual Section 13 Page 3 (6/15)

142 EMPLOYMENT WHILE RECEIVING DISABILITY BENEFITS Employment on any basis while receiving disability benefits may raise the issue of whether a member remains incapacitated from teaching. A disability benefit terminates if the disability benefit recipient performs any teaching service. Performing teaching service includes any and all teaching service, as well as any service that the member participates in that is similar to the position held as a contributing member of STRS Ohio, whether full time or part time, in a public or private setting, school or nonschool setting, on a volunteer basis or for compensation, in or outside the state of Ohio. The Retirement Board has defined to perform any teaching service as follows: 1. All employment, contracted services or volunteer work, that if performed in an Ohio public school would be covered by STRS Ohio; and 2. All teachers, tutors, substitute teachers, electronic classroom instructors, day care teachers, community school instructors and private-lesson providers; and 3. Work that relates to the work of educators, such as but not limited to, writing curriculum; leading workshops; providing training; instructing students of any age; or directing teachers, student teachers or students. The Retirement Board has the final determination. A member receiving a disability benefit from STRS Ohio on a combined basis with OPERS, SERS or both, is ineligible for employment covered by any system that participates in the combined disability retirement. In addition, any employment restrictions in those systems will also apply to the member. Members receiving a disability benefit independent from OPERS, SERS or both, also may not work in any position covered by another Ohio public retirement system for the first two months of benefits. After this two-month waiting period, part-time or full-time employment in a position covered by any other retirement system may be permitted. While this employment is not performing teaching service, it can raise the issue of whether the member remains incapacitated from teaching and cause a reexamination to occur. Members who have received a disability benefit for at least 14 months must annually complete and submit a Statement of Employment and Earnings After Receipt of a Disability Benefit form. STRS Ohio automatically mails this form to disability recipients in March. The form requires documentation of any earnings received and work duties performed while receiving disability benefits. If this form is not filed, disability benefits and health care coverage, if applicable, will be terminated. In addition, STRS Ohio may request members to be reexamined annually to ensure they are still incapacitated from teaching. Before becoming reemployed while receiving disability benefits, members should submit a job description to STRS Ohio for evaluation. Section 13 Page 4 (6/17) State Teachers Retirement System of Ohio

143 REPORT BY EMPLOYER (for a Disability Benefit Applicant) Applicant: Please provide this form and the envelope marked Report by Employer to your most recent Ohio public employer. Employer: Please put completed form and official job description in the envelope provided and return to STRS Ohio. Social Security number or Applicant STRS Ohio account number Employer County The information requested in this report will assist the State Teachers Retirement Board in its consideration of the disability application for the above member. We appreciate your prompt response. The medical criteria for disability benefits are that an injury or illness prevents the individual from performing his or her most recent job duties and the condition is expected to last at least 12 months from the date of receipt of the completed disability application by STRS Ohio. A member who was under contract when granted disability benefits and who has not resigned is on leave of absence from the position during the first five years on disability benefits. Disability benefit recipients are subject to periodic examinations. If such examination reveals that the recipient is capable of resuming the service from which he or she was found disabled, disability benefits are terminated. If benefits are terminated by the Retirement Board within the five-year period, the employer must restore the member to the same or to a similar position and salary. Section 1 Certification by Treasurer This is to certify that Member s name was/is an employee of Employer Current payroll status (check all that apply) q Full time q Paid administrative leave since q Part time (list schedule) q Receiving workers compensation benefits q Using vacation/sick time to remain on payroll q Voluntary separation effective q Paid FMLA/sick leave since q Involuntary separation effective q Unpaid FMLA/sick leave since q Other Check only one of the following: q The final day for which this member was/will be compensated, including sick leave: q The exact final date of compensation is not known; however, this member currently has days of personal and/or sick leave available. Signature Date Title Phone ( ) Area code (continued) , 6/16/500 Employers Manual Section 13 Page 5 (12/16) Sample Form (Side 1)

144 Section 2 Report of Employment by Employee s Supervisor STRS Ohio provides disability benefits to an applicant who is no longer capable of performing his or her most recent job duties. In order to make this determination, STRS Ohio requires a copy of the applicant s most recent official job description. If this applicant s position has requirements not listed in the official job description, please list extra contracted duties below. Please enclose a copy of the most recent official job description to avoid a delay in the completion of this application. Official job title the applicant last performed: Description of job duties the applicant last performed: In what ways does the applicant s performance of duties show probable disability for further service? Does job require any special working condition or physical demands such as lifting/kneeling? If so, please specify (pounds lifted, frequency of kneeling, use of stairs, etc.). Please describe any accommodations made under the Americans with Disabilities Act. Applicant s absence (current school year) days. Applicant s absence (previous school year) days. Signature Date Title Phone ( ) Area code , 6/16/500 Section 13 Page 6 (12/16) Sample Form (Side 2) State Teachers Retirement System of Ohio

145 SECTION 14 SURVIVOR BENEFITS Contents SURVIVOR BENEFITS...1 Retirement Plan Eligibility...1 Defined Benefit and Combined Plans...1 Defined Contribution Plan...1 Employer Procedures...1 Employers Manual Section 14 Contents (6/14)

146 State Teachers Retirement System of Ohio

147 SURVIVOR BENEFITS RETIREMENT PLAN ELIGIBILITY DEFINED BENEFIT AND COMBINED PLANS STRS Ohio s survivor benefits program is available to those members enrolled in the Defined Benefit and Combined Plans. DEFINED CONTRIBUTION PLAN Members enrolled in the Defined Contribution Plan are ineligible for STRS Ohio s survivor benefits program. However, the beneficiaries have the defined contribution account balance available to them. EMPLOYER PROCEDURES Employers may report the death of a member by calling toll-free Survivors should be advised to contact STRS Ohio as soon as possible to receive information about available benefits. STRS Ohio will need a copy of the death certificate and copies of the birth certificate for any dependent children. Employers will be asked to complete a deposit and service report for the deceased member. Contributions should be remitted on all earnings prior to the date of death, including payments made after death. See Section 6 for information on this report. Employers Manual Section 14 Page 1 (6/16)

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149 SECTION 15 DEFINED CONTRIBUTION AND SECTION 16 COMBINED PLANS Contents DEFINED CONTRIBUTION AND COMBINED PLANS...1 Eligibility...1 Defined Contribution Plan...1 Combined Plan...2 Defined Contribution and Combined Plan Differences...3 Employers Manual Section 15 Contents (6/16)

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151 DEFINED CONTRIBUTION AND COMBINED PLANS ELIGIBILITY New members may choose the Defined Benefit, Defined Contribution or Combined Plan (see Section 1, Page 7). New members have 180 days from their first date of paid service to select a plan. If a selection is not made, the member defaults to the Defined Benefit Plan. Members selecting the Defined Contribution or Combined Plan have another opportunity to remain in the plan they have selected or transfer to a different plan before completing their fifth year of membership. DEFINED CONTRIBUTION PLAN The Defined Contribution Plan offers a retirement income based on the performance of investment choices the member selects for member and employer contributions. Participating members may allocate these contributions among various investment options managed by STRS Ohio. Members currently contribute 14% of annual gross earnings to the defined contribution account, while employers currently contribute an additional 9.53%, meaning that the equivalent of 23.53% of a member s salary goes directly into the defined contribution account. The remaining 4.47% employer contributions are used to pay off STRS Ohio s unfunded liability. Withdrawal Members may withdraw the value of their accounts upon termination of employment. Account withdrawal amounts consist of member contributions plus any gains or losses on those contributions. Withdrawal amounts will also include the employer portion of the account (consisting of the employer contributions plus any gains or losses), according to the following vesting schedule: If membership began before July 1, 2013, the member is 100% vested in the employer portion of the account after one year of membership. If membership began on or after July 1, 2013, the member is vested in 20% of the employer portion of the account for each full year of membership. The withdrawal amount may be reduced by fees or early withdrawal penalties. (See Section 8 for details.) Retirement benefits Members are eligible to receive an annuity from their account balance upon termination of employment after age 50. The monthly benefit is calculated based on contributions plus investment earnings annuitized over the member s lifetime. Disability and survivor benefits If a member becomes disabled, he or she may withdraw the defined contribution account after terminating employment. In the event of a member s death, a surviving spouse may withdraw the account. Health care Defined Contribution Plan members do not have access to health care through the STRS Ohio Health Care Program. Employers Manual Section 15 Page 1 (6/17)

152 COMBINED PLAN The Combined Plan includes features of the Defined Benefit and the Defined Contribution Plans. Members currently contribute 14% of annual gross earnings, with 12% deposited to the defined contribution portion of the account and the remaining 2% is used to fund the defined benefit portion of the account. Current employer contributions of 14% of salary are used to fund a defined benefit portion of the plan. Participating members may allocate their contributions in the defined contribution account among various investment options managed by STRS Ohio. The defined benefit portion of the plan funds a combination of service retirement, disability and survivor benefits. Access to health care coverage is also available at retirement to eligible retirees. Withdrawal Members may withdraw their accounts upon termination of all STRS Ohio-covered service. If members withdraw their accounts before age 50, they must withdraw both the defined benefit and defined contribution portions of their accounts. At age 50 or after, they may withdraw the defined contribution portion upon termination of employment and leave the defined benefit portion on account for a benefit at age 60. Members may withdraw the defined benefit portion only if they are also withdrawing the defined contribution portion. A member s withdrawal amount may be affected by fees and early withdrawal penalties. (See Section 8 for details.) Retirement benefits At age 50 or after, members are eligible to receive an annuity from their defined contribution account. The contributions plus any gains or losses are annuitized over the member s lifetime. The defined benefit portion provides a monthly benefit for members at age 60 who have at least 5.00 years of service credit. The benefit is equal to 1% of final average salary (FAS) for every year of service credit. No cost-of-living adjustments are provided. Disability benefits If a member becomes disabled, he or she has the option of receiving disability benefits under the disability allowance program (see Section 13). All contributions and earnings from both portions of the account are surrendered to fund the disability benefits. At age 65, the disability allowance converts to a service retirement benefit. Survivor benefits In the event of a member s death, survivors have the option of receiving dependent-, service- or retirement-based benefits. All contributions and earnings from both portions of the account are surrendered to fund the benefits. Survivors also have the option to withdraw the defined contribution and defined benefit portions of the Combined Plan account. Health care Combined Plan members who elect monthly retirement benefits are eligible for the same health care plan options provided under the Defined Benefit Plan. In addition, disability recipients and survivors will be eligible for the same health care plan options provided under the Defined Benefit Plan. Section 15 Page 2 (6/16) State Teachers Retirement System of Ohio

153 DEFINED CONTRIBUTION AND COMBINED PLAN DIFFERENCES Because of the nature of the Defined Contribution and Combined Plans, several unique characteristics apply to these plans: Members with contributions in OPERS and SERS cannot combine these accounts for a joint benefit with their STRS Ohio Defined Contribution or Combined Plan account. Members in the Defined Contribution and Combined Plans are only eligible to purchase service credit for Ohio teaching service interrupted by military service. Members in the Combined Plan are eligible to purchase leaves of absence. Members can view the Retirement Plan Options Video in the Videos section of the member website for additional differences between the Defined Benefit, Defined Contribution and Combined Plans. Employers Manual Section 15 Page 3 (6/17)

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155 SECTION 16 EMPLOYMENT OF OHIO SECTION 17 PUBLIC RETIREES Contents EMPLOYMENT OF OHIO PUBLIC RETIREES...1 Employment Limitations in Ohio Public Employment...1 Employer Procedures...2 Contributions...3 Health Care Coverage...3 Alternative Retirement Plan Contributions...3 Reemployment Benefit...3 Application for Benefits...4 Sample Reemployed retiree notification screens...5 Reemployed Retiree Record Layout...6 Sample Forms Application for Monthly Annuity or Lump-Sum Payment (Reemployed Retiree)...7 Application for Lump-Sum Payment (Reemployed Retiree Under Age 65)...11 Employers Manual Section 16 Contents (6/16)

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157 EMPLOYMENT OF OHIO PUBLIC RETIREES The information below pertains to Ohio public retirees employed as teachers while receiving retirement benefits from any Ohio public retirement system or ARP. In addition to STRS Ohio, the other five Ohio public retirement systems are City of Cincinnati Retirement System, Highway Patrol Retirement System, Ohio Police & Fire Pension Fund, OPERS and SERS. STRS Ohio members receiving disability benefits are ineligible for employment as a teacher without forfeiting their benefit. Reemployed retirees making contributions to STRS Ohio are not considered STRS Ohio members and do not have any of the rights, privileges or membership obligations except as stated in Section , R.C. Reemployed retirees in federal, out-of-state or private employment are not included under the definition of reemployed retiree in Section , R.C. EMPLOYMENT LIMITATIONS IN OHIO PUBLIC EMPLOYMENT Members planning to return to an Ohio public employment position must terminate employment from the primary (highest paying) public employer before retirement. Reemployment cannot begin until after the retirement is effective with STRS Ohio. All STRS Ohio retirements are effective on the first of the month after eligibility requirements are met. One-day break in service To be eligible for retirement, there must be a minimum one-day break in service between the last day of employment as an active member and the first day of employment as a reemployed retiree. This one day must be the last workday of the month before the retirement date or the first workday of the retirement month. The one-day break must be a normal workday and cannot be a Saturday, Sunday or holiday. For example, if the educator s retirement date is July 1 and: The educator s last paid workday is between June 1 and June 29, the first day the educator can return to work to be eligible to retire will be July 1 (as long as June 30 is a normal workday). The educator s last paid workday is June 30, the first day the educator can return to work to be eligible to retire will be July 2 (as long as July 1 is a normal workday). Single employer If a member is employed by only one Ohio public employer at the time of retirement, the member must wait two months after the retirement effective date to return to public employment. Public employment during the first two months will result in the loss of one or two months of retirement benefits. Retirees cannot volunteer in the same position from which they retired for the first two months following the retirement effective date. Multiple employers (Defined Benefit Plan members only) If a member is employed at the time of retirement by more than one employer covered by STRS Ohio, OPERS or SERS, the member may retire with the highest paying (primary) employer and continue to work with one or all of the lower paying (secondary) employers with no waiting period (see Section 6, Page 3). A secondary employer is defined as any STRS Ohio, OPERS or SERS employer where the member earned less compensation than was earned with the highest paying employer (in that fiscal year or in the previous 12-month period) and the member is continuing employment in that position with that employer in the first month of retirement. Employers Manual Section 16 Page 1 (12/15)

158 To be eligible to continue to work with a secondary employer, the member must have earned compensation from that employer 12 consecutive months before and in the month of retirement to avoid a forfeiture of benefits. A member may have more than one secondary employer. The one-day break in service referenced above does not apply to secondary employer employment. EMPLOYER PROCEDURES When employing a retiree from any Ohio public retirement system or an ARP to an STRS Ohiocovered position, the employer must complete a Reemployed Retiree Notification form. The Reemployed Retiree Notification form can be submitted using one of the following methods: Completing the online form on the employer website (see sample screens on Page 5), or Transmission of a properly formatted electronic file (see Page 6). This form must be submitted within 10 days of the retiree s first date on payroll. Failure to provide notification when due may result in the employer s liability for any overpayment of benefits. Section , R.C., mandates that any school board proposing to continue the employment of a person in a position that is customarily filled by a vote of a board or commission, or to rehire a person as a reemployed retiree to the same position he or she held before retiring, must comply with the following guidelines: No less than 60 days before the employment of a reemployed retiree is to begin, the board must give public notice that the person is or will be retired and is seeking employment with the employer. Between 15 and 30 days before the employment of a reemployed retiree is to begin, the board must hold a public meeting on the issue of the person being employed. If you have any questions about Section , R.C., please contact your legal counsel. ONLINE Reemployed retiree information can be submitted through ESS on the employer website by choosing Reemployed Retiree Notification under the Application Menu (see sample on Page 5). To use ESS, you must be a registered user. See Registering to Use STRS Ohio s Employer Self Service in Section 3. SECURE FILE UPLOAD STRS Ohio accepts the transmission of data via secure file upload on the employer website. The file should be sent in the file format on Page 6. CONTRIBUTIONS Section 16 Page 2 (6/17) State Teachers Retirement System of Ohio

159 Contributions for retirees should be made at the same rate as for active members. These amounts should be included in the payroll report and also reported on the annual report. No service credit needs to be reported for reemployed retirees. See Sections 3 and 5 for more information on payroll reports and annual reporting. HEALTH CARE COVERAGE Coverage under the STRS Ohio Health Care Program is limited for non-medicare enrollees employed in public or private positions. Employed enrollees are eligible only for secondary coverage through STRS Ohio s Basic Plan if they: (1) are eligible for medical and prescription drug coverage through their employer, or (2) hold a position for which similarly situated employees are eligible for medical and prescription drug coverage at the same cost as full-time employees. The rule applies to all employed enrollees who are not eligible for Medicare, regardless of hire date or type of employment. STRS Ohio requires non-medicare enrollees to verify their employment status and access to employer health coverage annually. Enrollees can provide this verification via an STRS Ohio Online Personal Account or by submitting a Verification of Employment and Employer Health Care Access form (available on the member website or upon request). ALTERNATIVE RETIREMENT PLAN CONTRIBUTIONS Reemployed retirees employed full time by a public college or university, in an academic and/or administrative position, are able to choose an ARP. Employers are required to report employees electing an ARP and contribute a percentage of the electing employee s compensation to STRS Ohio for each employee electing an ARP. These payments go toward meeting the employer s proportionate share of STRS Ohio s unfunded accrued liability. REEMPLOYMENT BENEFIT During periods of reemployment covered under one of the Ohio public retirement systems, the retiree makes contributions to the appropriate retirement system. These contributions are used to fund an additional annuity benefit or the retiree may choose a lump-sum benefit. The retiree may collect this benefit upon termination of employment. If contributions are withdrawn before age 65, the lump-sum payment is based on the member s contributions and interest. Retirees forfeit all matching funds when withdrawal occurs before the age of 65. At age 65 or after, the member may elect to receive an annuity or lump-sum withdrawal annuity amount that will be paid as a benefit. A lump-sum benefit will be paid if the annuity amount is less than $25. Payments for reemployment benefits include interest at rates approved by the Retirement Board and may include matching funds. Reemployed retirees receive full (100%) matching funds for contributions on earnings before July 1, Contributions on earnings from July 1, 2005, through June 30, 2013, receive a 50% match. For contributions on earnings on or after July 1, 2013, no matching funds will be received. Interest rates and matching percentages are subject to change without notice. Employers Manual Section 16 Page 3 (6/17)

160 APPLICATION FOR BENEFITS At the time a reemployed retiree becomes eligible for and chooses to receive a benefit, the retiree should complete an Application for Monthly Annuity or Lump-Sum Payment (Reemployed Retiree) or an Application for Lump-Sum Payment (Reemployed Retiree Under Age 65). If the retiree has been employed in the current year, an employer certification will be sent to each employer to certify current year contributions. The employer should complete the online certification and submit to STRS Ohio. See the Withdrawal Certification section in the ESS instructions for details about completing this form. A sample of the Application for Monthly Annuity or Lump-Sum Payment (Reemployed Retiree) is included on Page 7. A sample of the Application for Lump-Sum Payment (Reemployed Retiree Under Age 65) can be found on Page 11. The reemployed retiree can also apply for payment via the Online Personal Account area of the member website. Section 16 Page 4 (11/17) State Teachers Retirement System of Ohio

161 Reemployed retiree notification screen 1 Reemployed retiree notification screen 2 Employers Manual Section 16 Page 5 (6/15) Web Screens

162 Reemployed Retiree Record Layout The following layout is required to transmit reemployed retiree notifications via secure file upload on our website. Field No. Field Name Description Start Location Field Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric RM=Reemployed retiree 2 Employer Number 3 First Date of Service Four-character employer number (the first digit for city school districts is the letter C). Employee s first day of work after retirement. 5 4 Alphanumeric STRS Ohio employer number 9 10 MM/DD/CCYY Date 4 Social Security Number Social Security number of employee Numeric 5 Last Name 6 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 7 Birth Date Birth date of employee MM/DD/CCYY Date 8 Gender Gender of employee Alphanumeric F=Female, M=Male 9 Address Delivery address. No punctuation except dash [ ] Alphanumeric 10 City Name City name Alphanumeric 11 State Code United States Postal Service (USPS) abbreviation for state Alphanumeric USPS assigned state codes, **=Foreign address 12 ZIP Code ZIP code (basic 5 digits) Numeric 13 ARP Ohio Retirement System Effective Retirement Date 16 Type of Benefit Employment Under ORC Compliance With ORC Identifies higher education faculty eligible to elect an alternative retirement plan (ARP). Note: Only applicable to college and university employers (optional field). Identifies the Ohio retirement system that is paying the retirement benefit Alphanumeric Alphanumeric Member s effective date of retirement MM/DD/CCYY Date Identifies the type of retirement benefit that the member is receiving. Was the retiree reemployed under Section (Ohio Revised Code), which requires public notices be given and public meetings be held for certain rehires? Were the requirements for reemployed retirement under Section (Ohio Revised Code) met? Alphanumeric Alphanumeric Alphanumeric Y=Eligible for ARP, N=Ineligible/Not applicable OPERS=Ohio PERS, SERS=SERS Ohio, STRS=STRS Ohio, OP&F=Ohio Police & Fire, SHP=Highway Patrol, CRS=City of Cincinnati, ARP= Alternative Retirement Plan S=Age and service, D=Disability Y=Yes, the retiree was employed under Section , N=No, the retiree was not employed under Section Y=Yes, the requirements of Section were met, N=No, the requirements of Section were not met 19 Reserved Space reserved for future use Alphanumeric Total record length = , 3/16/10 Section 16 Page 6 (6/16) State Teachers Retirement System of Ohio

163 APPLICATION FOR MONTHLY ANNUITY OR LUMP-SUM PAYMENT SAMPLE (Reemployed Retiree) Please note the following information regarding your reemployed annuity or lump-sum payment: 1. Section 7 (back page) of this form must be completed by the fiscal officer of your employer if: You were employed after your 65 th birthday, or You had contributing service within the last 18 months. 2. Separate applications must be certified if you had service during either of the above periods with more than one employer. The application is not complete unless it bears the school official s certification, if certification is required. 3. There are no provisions in the retirement law allowing partial withdrawals or loans. 4. STRS Ohio cannot determine the exact withdrawal or monthly annuity amount until the completed application is received from your employer. If requested, STRS Ohio will send an estimate of your lump-sum and monthly annuity amounts. 5. Your reemployed account check will be mailed to the address shown on this application unless STRS Ohio receives written notice of your change of address. Your funds will be rolled over if you complete Section 3. You may request a direct deposit of your funds by providing bank information in Section Federal tax requirements state account withdrawal checks must be issued between Special Tax Notice Mailed 30 and 180 days from the date STRS Ohio mails special tax information to you. If more than 180 days have passed from the Special Tax Notice Mailed date shown in the box to the right, please contact STRS Ohio for a new application. Your signature in Section 6 indicates you wish to waive the 30-day waiting period. Please call us if you do not wish to waive this waiting period. 7. Section 6 must be signed. If the application is not signed, it will be returned to you. Section 1 General Information (Please print in ink.) Effective date is the first of the month following last date of service, Effective date attainment of age 65 or 12 months after the effective date of a Month Year previous reemployed benefit payment, whichever is later , 5/17/3M Name First Middle Last Retiree s Social Security number or STRS Ohio account number Home address Street address City State ZIP code Phone ( ) Birth date Area code 1 (continued) Employers Manual Section 16 Page 7 (6/17) Sample Form (Page 1)

164 Section 2 Payment Selection (Check one box.) o LUMP-SUM PAYMENT I elect to withdraw my contributions, matching contributions as determined by the State Teachers Retirement Board and interest in one lump-sum payment. (If you would like to roll over your lump-sum payment, please complete all information in Section 3 and sign and date Section 6. If you do not want to roll over your payment, please review and complete Direct Deposit to Bank Account in Section 4, Income Tax Withholding on Lump-Sum Payments in Section 5a and sign and date Section 6. o MONTHLY ANNUITY (Available only if monthly benefit equals or exceeds $25.) I elect to draw a lifetime monthly annuity. (If you are taking a monthly annuity, please complete all information in Section 4, Section 5b and Section 6.) At the time of my death, if funds remain from my contributions, matching contributions as determined by the State Teachers Retirement Board or interest, the balance is payable to my beneficiary* listed below: Beneficiary name First Middle Last Social Security number or Relationship Birth date STRS Ohio account number *If you wish to name more than one beneficiary, please call STRS Ohio toll-free at for further instructions. Section 3 Direct Rollover Instructions for Lump-Sum Payment Option 1. Retirement plans eligible for direct rollovers include traditional individual retirement accounts (IRAs), Roth IRA, SEP-IRA, SIMPLE IRA, 403(b) plans, 457(b) governmental plans and retirement plans qualified under Internal Revenue Code Section 401(a). 2. Retirement plans are not required to accept rollovers and many retirement plans do not accept nontaxable contributions. Please check with your plan. 3. Please also refer to the enclosed Special Tax Notice Regarding Lump-Sum Payments for tax restrictions applicable to rollovers before completing this section. I wish to directly roll over all or part of my eligible payment to an eligible retirement plan and have confirmed that my plan administrator accepts direct rollovers from Section 401(a) retirement plans. Rollover distribution to be made payable to: Name of financial institution or plan trustee Attention Address of financial institution Street address City State ZIP code SAMPLE Account number with institution (required) Type of account Traditional IRA 401(a) qualified plan, including 401(k) Amount of rollover 100% (check one) Roth IRA 403(b) (check one) $ SEP-IRA 457(b) governmental plan % SIMPLE IRA Other Complete as applicable: o I understand that any money remaining in my account after the above amounts are rolled over will be paid directly to me and any taxable amounts will be subject to 20% federal income tax withholding. o Mail rollover check, payable to my specified eligible retirement plan, to my home address. Note: The financial institution s address is still required above , 5/17/3M 2 Section 16 Page 8 (6/17) Sample Form (Page 2) State Teachers Retirement System of Ohio

165 Section 4 Direct Deposit to Bank Account* (Choose one type of account.) Required for monthly annuity payments; optional for lump-sum payments. If this section is not completed, any funds not rolled over will be mailed to the address provided in Section 1. o SAVINGS or INVESTMENT ACCOUNT o CHECKING (Please attach a voided check to this form or provide the account number and routing number below.) Name of financial institution Joint account holder Financial institution phone ( ) Area code *For an investment account, ask your plan to provide direct deposit information on a form or letter and include a copy with this application. For a savings or checking account, include account information in the space provided above. You may also update your bank information through your Online Personal Account at Section 5 Income Tax Withholding 5a. INCOME TAX WITHHOLDING ON LUMP-SUM PAYMENTS: Under federal law, STRS Ohio must withhold 20% federal income tax on all lump-sum payments eligible for rollover and paid directly to you. To withhold a higher percent, indicate here: I elect to have more than 20% federal tax withheld from my total lump-sum payment. Percent to withhold: %. If you are over age 70-1/2, a portion of your payment is a required minimum distribution not eligible for rollover. You may request a different percentage of withholding on that portion. I elect to have % withheld from the required minimum distribution portion of my payment, if any. I understand 20% will be withheld from any amount paid directly to me that is not a required minimum distribution. Ohio withholding for Ohio residents only (If no election is made, STRS Ohio will process your application without Ohio state tax withholding.) o I request the following amount be withheld for Ohio tax: $. o I do not want Ohio state tax withheld from my STRS Ohio benefit. This choice does not release you from Ohio tax obligations if you live in Ohio. 5b. INCOME TAX WITHHOLDING ON MONTHLY ANNUITY: Federal withholding (Choose Option 1, 2 or 3.) 1. I do not want federal income tax withheld from my STRS Ohio benefit. 2. Marital status: Single Married. Number of allowances (See Optional additional withholding below.) 3. Married, but withhold at higher single rate. Allowances will be zero. (See Optional additional withholding below.) Optional additional withholding In addition to the calculated withholding in Option 2 or 3 selected above, I want additional tax withheld of $ per month. If necessary, I give STRS Ohio permission to correct my withholding request based on clarification obtained through a phone call to me. If no election is made, I understand STRS Ohio will process my application using the tax status of married with three allowances. Ohio withholding for Ohio residents only (If no election is made, STRS Ohio will process your application without Ohio state tax withholding.) I request the following monthly amount be withheld for Ohio tax. Whole dollar amount or percentage I do not want Ohio state tax withheld from my STRS Ohio benefit. This choice does not release you from Ohio tax obligations if you live in Ohio. The state of Ohio provides STRS Ohio with a voluntary withholding program. STRS Ohio withholds only Ohio income tax and only upon your request. If you live outside of Ohio, you may wish to contact a tax consultant concerning the income tax laws of that state. You may initiate or change federal or state withholding from monthly benefits at any time. Contact STRS Ohio for the appropriate forms. SECTION 6 Acknowledgment of Reemployed Retiree I provided the requested information to the best of my knowledge. I also certify I am not under any agreement or employment contract for future teaching service. I understand this application must be received by STRS Ohio within 180 days from the Special Tax Notice Mailed date indicated on the front of this application. Signature Date (continued) , 5/17/3M Tape voided check here (do not staple). OR Account 9-digit routing number or transit number SAMPLE Employers Manual Section 16 Page 9 (6/17) Sample Form (Page 3)

166 Social Security number or Name STRS Ohio account number EMPLOYER CERTIFICATION Photocopy this page and distribute one page to each employer. Section 7 To Be Completed by Fiscal Officer This section is to be completed by the school fiscal officer if the applicant has worked at any time past age 65 even if not currently employed by an STRS Ohio-covered employer or if the applicant had contributing service within the last 18 months. Under Ohio law, employers must verify information and certify only accurate and correct information about an applicant s contributions. This information is used to determine payment due the applicant. Employers are required to reimburse STRS Ohio for any overpayment of funds resulting from an error in employer certification. I certify to the best of my knowledge the member named above, who is applying for an STRS Ohio reemployed benefit payment, is not currently under contract with this employer in an STRS Ohio-contributing position as defined in retirement law; is not on leave of absence from such employment; does not have any other contractual status; is not an applicant for such employment, including substitute teaching; and is under no verbal or written agreement for future teaching. Last date of service for which STRS Ohio compensation was earned... Last date on payroll... Total STRS Ohio compensation earned... Retirement contributions (to be reported on Annual Report): Employee contributions taxed... Employee contributions tax-deferred or picked up... Note: Employee contribution rate is 14%. Year Year $ $ $ Fiscal officer s signature Date Employer Title Employer number Phone ( ) Area code Fiscal Year* Year Year $ $ $ SAMPLE *If you are completing this form July through October and the applicant worked after June 30, you must complete the information for the previous fiscal year ended June 30 and the current fiscal year ec, 5/17/3M 4 Section 16 Page 10 (6/17) Sample Form (Page 4) State Teachers Retirement System of Ohio

167 APPLICATION FOR LUMP-SUM PAYMENT (Reemployed Retiree Under Age 65) Section 1 General Information (Please print in ink.) Name First Middle Last Retiree s Social Security number or STRS Ohio account number Home address Street address City State ZIP code Phone ( ) Birth date Area code Effective date Please note the following information regarding your reemployed lump-sum payment: 1. Section 6 on Page 4 of this form must be completed by the fiscal officer of your employer. 2. Separate applications must be certified if your final year of service was with more than one employer. The application is not complete unless it contains the school official s certification. 3. There are no provisions in the retirement law allowing partial withdrawals or loans. 4. STRS Ohio cannot determine the exact withdrawal amount until the completed application is received from your employer. If requested, STRS Ohio will send an estimate of your lump-sum amount. 5. Your reemployed account check will be mailed to the address shown on this application unless STRS Ohio receives written notice of your change of address. Your funds will be rolled over if you complete Section 2. You may request a direct deposit of your funds by providing bank information in Section Section 5 on Page 3 of this form must be signed. If the application is not signed, it will be returned to you. Income Tax Month Year Effective date is the first of the month following last date of service or 12 months after the effective date of a previous reemployed benefit payment, whichever is later. Federal tax requirements state account withdrawal checks must be issued between 30 and 180 days from the date STRS Ohio mails special tax information to you. If more than 180 days have passed from the Special Tax Notice Mailed date shown in the box to the right, please contact STRS Ohio for a new application. Your signature in Section 5 indicates you wish to waive the 30-day waiting period. Please call us if you do not wish to waive this waiting period. Special Tax Notice Mailed SAMPLE Under federal law, STRS Ohio is required to withhold 20% federal income tax from the taxable amount of all lump-sum payments exceeding $200. If you elect a direct rollover to a qualified plan, you will not be subject to the 20% federal income tax with holding. If you are under age 59-1/2, additional taxes and penalties may apply. Please consult a tax advisor. Important note: If you take a refund of your reemployed account before age 65, the lump-sum amount consists of contributions you have made plus interest, if eligible, at a rate set by the State Teachers Retirement Board through the end of the month in which your last day of contributing service occurred or 12 months after the payment of a previous reemployed benefit payment, (continued) , 9/16/200 1 Employers Manual Section 16 Page 11 (12/16) Sample Form (Page 1)

168 whichever is later (interest rates are subject to change). If you wait until attaining age 65, the lump-sum amount may also include a percentage of matching contributions plus interest, or you may qualify to receive a monthly annuity benefit in lieu of a lump-sum payment. Taking a refund of your account before age 65 cancels your rights to an annuity or refund that may include matching contributions and interest on those contributions. Section 2 Direct Rollover Instructions 1. Retirement plans eligible for direct rollovers include traditional individual retirement accounts (IRAs), Roth IRAs, 403(b) plans, 457(b) governmental plans and retirement plans qualified under Internal Revenue Code Section 401(a). 2. Retirement plans are not required to accept rollovers and many retirement plans do not accept nontaxable contributions. Please check with your plan. 3. Please also refer to the enclosed Special Tax Notice Regarding Lump-Sum Payments for tax restrictions applicable to rollovers before completing this section. I wish to directly roll over all or part of my eligible payment to an eligible retirement plan and have confirmed that my plan administrator accepts direct rollovers from Section 401(a) retirement plans. Rollover distribution to be made payable to: Name of financial institution or plan trustee Attention Address of financial institution Street address City State ZIP code Account number with institution (required) Type of account Traditional IRA Amount of rollover 100% (check one) Roth IRA (check one) $ 401(a) 403(b) 457(b) governmental plan Other % Complete as applicable: o I understand that any money remaining in my account after the above amounts are rolled over will be paid directly to me and any taxable amounts will be subject to 20% federal income tax withholding. o Mail rollover check, payable to my specified eligible retirement plan, to my home address. Note: The financial institution s address is still required above. SAMPLE , 9/16/200 2 Section 16 Page 12 (12/16) Sample Form (Page 2) State Teachers Retirement System of Ohio

169 Section 3 Direct Deposit to Bank Account* (Choose one type of account.) If this section is not completed, any funds not rolled over will be mailed to the address provided in Section 1. o SAVINGS or INVESTMENT ACCOUNT Account number 9-digit routing or transit number Name of financial institution Joint account holder SAMPLE Financial institution phone ( ) Area code o CHECKING (Please attach a voided check to this form or provide the account number and routing number in the box below.) Tape voided check here (do not staple). OR Account number 9-digit routing or transit number Name of financial institution Joint account holder Financial institution phone ( ) Area code *For direct deposit to an investment account, please ask your investment plan to provide direct deposit information on a form or letter. Include a copy of the form or letter with this application. For a savings or checking account, include account information in the space provided above. You may also update your bank information by logging in to your Online Personal Account at Section 4 Income Tax Withholding Income tax withholding on lump-sum payments: Under federal law, STRS Ohio must withhold 20% federal income tax on all lump-sum payments that are eligible for rollover and paid directly to you. If you would like an amount greater than 20% withheld, please indicate the percent of tax to withhold (cannot be less than 20%): %. Ohio withholding for Ohio residents only (If no election is made, STRS Ohio will process your application without Ohio state tax withholding.) o I request the following amount be withheld for Ohio tax: $. o I do not want Ohio state tax withheld from my STRS Ohio benefit. This choice does not release you from Ohio tax obligations if you live in Ohio. The state of Ohio provides STRS Ohio with a voluntary withholding program. STRS Ohio withholds only Ohio income tax and only upon your request. If you live outside of Ohio, you may wish to contact a tax consultant concerning the income tax laws of that state. Section 5 Acknowledgment of Reemployed Retiree I reviewed this completed application and elect to withdraw my contributions and interest in a lump-sum payment. I understand that by taking a lump-sum payment before attaining age 65, I am forfeiting the right to any potential matching contributions and interest, and I am not eligible to receive a monthly annuity benefit. I provided the requested information to the best of my knowledge. I also certify I am not under any agreement or employment contract for future teaching service. I understand this application must be received and payment issued by STRS Ohio within 180 days from the Special Tax Notice Mailed date indicated on the front of this application. Signature Date (continued) , 9/16/200 3 Employers Manual Section 16 Page 13 (12/16) Sample Form (Page 3)

170 Social Security number or Name STRS Ohio account number EMPLOYER CERTIFICATION Photocopy this page and distribute one page to each employer. Section 6 To Be Completed by Fiscal Officer This section is to be completed by the school fiscal officer. Under Ohio law, employers must verify information and certify only accurate and correct information about an applicant s contributions. This information is used to determine payment due the applicant. Employers are required to reimburse STRS Ohio for any overpayment of funds resulting from an error in employer certification. I certify to the best of my knowledge the member named above, who is applying for an STRS Ohio reemployed benefit payment, is not currently under contract with this employer in an STRS Ohio-contributing position as defined in retirement law; is not on leave of absence from such employment; does not have any other contractual status; is not an applicant for such employment, including substitute teaching; and is under no verbal or written agreement for future teaching. Last date of service for which STRS Ohio compensation was earned... Last date on payroll... Total STRS Ohio compensation earned... Retirement contributions (to be reported on Annual Report): Employee contributions taxed... Employee contributions tax-deferred or picked up... Note: Employee contribution rate is 14%. Year Year $ $ $ Fiscal officer s signature Date Employer Title Employer number Phone ( ) Area code Fiscal Year* Year Year $ $ $ SAMPLE *If you are completing this form July through October and the applicant worked after June 30, you must complete the information for the previous fiscal year ended June 30 and the current fiscal year ec, 9/16/200 4 Section 16 Page 14 (12/16) Sample Form (Page 4) State Teachers Retirement System of Ohio