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Glossary
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Accrued Contributions
Contributions included in an employer’s Annual Report on salary earned
by June 30 but not paid and included in payroll reports until July and
August.
Active Member
A full-time or part-time educator employed in the public schools of
Ohio who has earned STRS Ohio service credit during the last fiscal
year.
Alternative Retirement Plan (ARP)
One of three or more defined contribution retirement plans selected
by the Ohio Department of Insurance and offered by Ohio public institutions
of higher education to eligible university and college faculty.
Annual Report
An employer report due by the second Friday in August of each year.
The report includes STRS Ohio contributions and service credit by member
for the prior fiscal year.
Annual Salary for Retirement Incentive
The annual salary used for calculating retirement incentive cost which
includes supplemental and summer earnings, salary from all public employers
and, for part-time employees, full-time equivalent (FTE) earnings.
Backpostings
Prior year contributions deposited to a member’s account after
the Annual Report for that fiscal year has been filed.
Board Rule
A rule adopted by the State Teachers Retirement Board pursuant to the
Revised Code.
Buyout
The purchase of credit by an employer under an Early Retirement Incentive
Plan.
Carryover
An amount earned during a fiscal year under the prior year’s contract.
It usually refers to July earnings under an August through July contract.
Combined Plan
An STRS Ohio retirement plan option that combines elements of both the
Defined Benefit Plan and the Defined Contribution Plan.
Compensation
All salary, wages and earnings by reason of employment including amounts
paid for a supplemental contract. Some types of payments to employees
are excluded for STRS Ohio purposes under the Revised Code.
Contract Year
Refers to the time period that comprises an employee’s employment
contract.
Contribution Rate
One of three annual percentage rates paid to STRS Ohio on behalf of
a member or an ARP participant. The member and employer rates are currently
10% and 14%, respectively. The employer rate for ARP participants is
currently 3.5%.
Current Absence or Leave
A period of time within the prior two fiscal years during which an employee
did not work due to illness or injury who is granted a leave pursuant
to 3319.3, 3319.131 or 3345.28, Revised Code, or who is granted a leave
pursuant to the Family and Medical Leave Act of 1993.
Current Fiscal Year
The July 1 to June 30 year in which the employee is presently working.
STRS Ohio refers to fiscal years as 96-97, 97-98, etc.
Current Fiscal Year Absence or Leave
A period of time within the current fiscal year, July 1 to June 30,
during which an employee did not work due to illness or injury who is
granted a leave pursuant to 3319.3, 3319.131 or 3345.28, Revised Code,
or who is granted a leave pursuant to the Family and Medical Leave Act
of 1993.
Current Year Earnings
Compensation earned in the current fiscal year.
DA-Site
A name that refers to an Ohio Education Computer Network (OECN) computer
consortium that provides computer and programming resources for employers
for payroll and retirement processing.
Defined Contribution Plan
A type of retirement plan in which the benefits are not defined in advance.
Only the contributions made by the employee and employer are defined.
Defined Benefit Plan
A retirement plan in which the benefits are defined and not based on
the total contributions by member and employer. For the STRS Ohio Defined
Benefit Plan, benefits are based on final average salary and years of
service.
Deposit and Service Report
An interim report completed by employers for all teachers applying for
service or disability retirement and for deceased teachers eligible
for survivor benefits. The information is used by STRS Ohio to update
the member’s account and to compute benefit payments.
Disability Allowance
A type of disability benefit available only to qualified members and
based on a percentage (limited to 60% and no less than 45%) of the member’s
final average salary. The percentage is determined by multiplying Ohio-valued
credit by 2.2%.
Disability Retirement
A type of disability benefit available only to qualified members
and based on a percentage (limited to 75% and no less than 30%) of the
member’s final average salary. The percentage is determined by
multiplying total Ohio-valued credit and projected credit to age 60
by 2%.
Employer
The public board of education, school district, college, university,
institution or other agency within the state in which a teacher is employed.
Employer Advisor
An STRS Ohio liaison trained to answer employer questions, to assist
in the resolution of problems and to foster good working relationships
between STRS Ohio and reporting employers.
Employers Manual
An STRS Ohio reference guide to Ohio law, STRS Ohio Board Rules and
administrative procedures for treasurers and fiscal officers.
Final Average Salary (FAS)
The average of a member’s three highest years of earnings (subject
to limitations in Ohio law), regardless of when they occur.
Fiscal Year
The reporting period for STRS Ohio beginning July 1 and ending June
30. STRS Ohio refers to fiscal years as 96-97, 97-98, etc.
401 Limits
Refers to section 401(a)(17) of the Internal Revenue Code which limits
the amount of compensation on which an employee can contribute.
Fringe Benefit Pickup
Tax-deferred employee contributions paid in full or in part by the employer.
Full-time Equivalent (FTE)
Basis for calculating service credit for university and college faculty.
The FTE may vary by institution.
Full Time
For service credit calculation, a member whose contract begins and ends
on the first and last day of the 365-day calendar year or the 180-day
academic year and whose contract provides compensation equal to 100%
of the full-time salary as defined by the teachers salary schedule for
a teacher teaching every day, all day.
FAS Limitation
Refers to provisions in Ohio law which may limit the final average salary
(FAS) of an STRS Ohio benefit recipient. Its purpose is to protect the
actuarial integrity of the retirement system by limiting a member’s
FAS when unusually high earnings occur in one or two of the highest
years.
Inactive Member
A person who does not have active service within the last fiscal year
but has an account balance at STRS Ohio.
Last Day of Service
Date the member stopped working, up to and including the date of any
used vacation or sick leave.
Leave of Absence
An absence or leave that qualifies for the purchase of STRS Ohio credit
under the Revised Code.
Member
An educator who currently contributes to STRS Ohio for teaching service
provided in an Ohio public school or has an account balance with STRS
Ohio.
Ohio Public Retirement System
One of five Ohio retirement systems including State Teachers Retirement
System (STRS Ohio), Ohio Public Employees Retirement System (OPERS), School
Employees Retirement System (SERS), Ohio Police & Fire
Pension Fund and Ohio Highway Patrol Retirement System.
120-Day Employment Relationship
A relationship that exists between a teacher and employer when the teacher
has been employed over a period of at least 120 days of the school year.
The school year is defined as the scheduled academic year, usually from
late August to early June.
Part Time
For service credit calculation, a member who does not meet the criteria
of full time or a full-time teacher working less than 120 contract days.
Past Absence or Leave
An absence or leave from teaching that ended more than two fiscal years
prior to the current fiscal year.
Payroll Deduction
The process by which members purchase additional retirement credit through
monthly installments for service credit that qualifies as purchasable.
Payroll Report
An electronic employer report of STRS Ohio contributions by individual
member after each payroll. Each report, along with payment of
the contributions, is due within five business days after the payroll
date.
Pickup
Contributions sent to STRS Ohio by the employer on a tax-deferred basis
authorized under Section 414(h) of the Internal Revenue Code.
Pickup-on-Pickup
A term used by employers to refer to fringe benefit pickup of all or
part of a member’s retirement contributions that are included
in compensation for retirement purposes.
Prior Fiscal Year
A past STRS Ohio fiscal year for which reporting has been completed.
For example, 1996-97, 1995-96, 1994-95, etc. are prior fiscal years.
Purchased Service Credit
Service credit purchased by a member to increase retirement income or
to allow earlier retirement
Reemployed Retiree
A person who begins teaching after retiring from one of the public
retirement systems in Ohio: STRS Ohio, OPERS, SERS, Ohio Highway Patrol
Retirement System and Ohio Police & Fire Pension Fund or the City of Cincinnati
Retirement System.
Request for Additional Information
An employer-completed report for service retirees, disability retirees
or survivor benefit recipients indicating salary history for the five-year
period preceding retirement. This information is required for employees
with Aug. 1 to July 31 contract years or supplemental contracts and
is used to calculate final average salary (FAS).
Salary Reduction Pickup
Tax-deferred employee contributions deducted from an employee’s
salary and paid to STRS Ohio by the employer.
Service Credit
The number of years earned through contributing service or purchased
under the provisions of the plan. Service credit helps determine eligibility
and the amount of a member’s monthly benefit. Service credit for
teaching is calculated by employers according to rules established by
the State Teachers Retirement Board.
Service Retirement
Retirement based on age and years of earned and purchased service credit.
State Foundation Program
A state-governed program that remits employer contributions to STRS
Ohio on a bimonthly basis. City, local and exempted village schools
that receive state funding have all or a portion of their contributions
remitted to STRS Ohio directly from the State of Ohio’s Division
of School Finance.
Student Employees
Members employed as teachers on a part-time basis by a school, college
or university in which they currently attend classes. State Teachers Board
Rule 3307-1-07 allows these students to apply for exemption from contributions.
Survivor Benefits
Benefits paid to qualified beneficiaries in the event of the death of
an STRS Ohio member with 1.5 or more years of Ohio service credit prior
to death and 0.25 years of Ohio contributing service credit in the 2-1/2-year
period before death. Protection for eligible dependents continues for
27 months following the member’s last contributing service or
while the member is receiving a disability benefit.
Supplemental
Compensation earned under a supplemental contract for services rendered
in addition to an employee’s regular or full-time contract.
Unauthorized Contributions
Contributions reported by an employer for a member for a prior fiscal
year and subsequently returned to the employer. The return of contributions
is due to a reporting error or contributions remitted on payments not
meeting the definition of STRS Ohio compensation.
Withdrawal
Distribution of employee contributions (plus interest and 50% matching
funds, if applicable) to members meeting eligibility requirements.
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