The changes outlined below are effective beginning July 1, 2014. A revised copy of the Employers Manual reflecting these changes and other updates will be available on our website on July 1. We recommend updating any paper copies of the Employers Manual at that time. If you have questions about these changes, please contact your employer education coordinator toll-free at 888‑535‑4050 or send an email to [email protected] Additional information about these changes is available on our website.
Member contribution rate increases to 12%.
Employers must withhold 12% member contributions on compensation earned on or after July 1, 2014. Ensure your payroll system can report contributions at two different rates depending on the fiscal year the compensation is earned:
— 11% if earned by June 30, 2014 (accrued contributions); or
— 12% if earned on or after July 1, 2014.
Remember, backpostings and account adjustments processed after July 1 will need to be made at the contribution rate in effect at the time the amounts were earned. Click here for more information about the rate increase and its effect on payroll reporting.
Employer pickup plan updates are due.
Please review last year’s pickup plan documentation effective July 1, 2013. If you adopted a plan at the contribution “rate in effect,” your plan will automatically be updated to include the 1% increase in member contributions. No additional paperwork needs to be filed with STRS Ohio unless you decide to modify the pickup plans you currently have in place. If you adopted a plan with specific percentages, you must amend it to account for the 1% increase in member contributions. To update your plan, please submit a Notification for Employer Pickup of Employee Contributions form with a certified copy of the board resolution effective July 1, 2014. In addition, you must ensure contributions are withheld at the correct contribution rate and program your payroll system accordingly to account for additional pickup-on-pickup contributions. Click here for details about amending your pickup plans.
Membership compliance is required.
STRS Ohio and SERS have agreed on membership for various positions of mutual interest. Individuals must be placed in the correct retirement system beginning July 1, 2014. This will only affect new earnings as of July 1, 2014, or later. Click here to view the January 2014 important message to employers, as well as the follow-up message about preschool teachers.
Retirement incentive credit is eliminated.
The provision allowing employers to offer an STRS Ohio Retirement Incentive Plan is eliminated. Retirement incentive credit will not be granted for retirement effective dates Aug. 1, 2014, or later.
Reemployment is restricted at retirement.
Members who hold more than one position with STRS Ohio, OPERS or SERS and who plan to retire from the higher paying position with one employer and continue working in the lower paying position with another employer may do so only if they have continuously held the lower paying position for at least 12 consecutive months immediately prior to retirement.