Compensation is salary, wages and other earnings paid to an employee, including amounts paid for a supplemental contract. Compensation is defined under Section 3307.01, R.C.
The following types of payments are examples of payments not subject to STRS Ohio contributions in accordance with Section 3307.01, R.C.
For a complete list please refer to Section 2 of the Employers Manual.
Cafeteria plans do not change the base compensation for retirement contributions. The basis for member and employer contributions is the salary specified by the contract or salary schedule.
No. Payments made to provide insurance of any kind or payments made in lieu of insurance are not considered compensation for STRS Ohio purposes.
Annuities paid on behalf of members are considered compensation for STRS Ohio purposes if they are part of the employee's compensation for services and are not excluded for some other reason, such as an annuity in lieu of insurance benefits. 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.
If an employer pays or reimburses any part of a member’s Medicare tax, the amount the employer pays or reimburses may not be included in the member’s compensation for STRS Ohio purposes.
In general, retroactive increases are not subject to STRS Ohio compensation. However, retroactive increases may be subject to STRS Ohio contributions if retroactive increases are granted to:
Bonuses are generally considered compensation for STRS Ohio purposes, as long as they are earned by reason of employment. However, if any bonus is attributable to retirement, paid in lieu of items not considered STRS Ohio compensation or retroactive, it may be excluded from compensation. Questions about whether a specific bonus is included in compensation should be directed to STRS Ohio employer advisors.
All settlements must be reviewed by STRS Ohio prior to remitting contributions on these types of payments. Please contact your employer education coordinator and submit a copy of the agreement for review. If the settlement is based on punitive damages rather than compensation for actual work performed, then STRS Ohio cannot accept contributions on the payment.