SECTION 11 PURCHASING SERVICE CREDIT

Transcription

1 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 (Side 1) For Certification of Teaching Service in Ohio Public Schools for Which (Side 2) Member DID NOT Contribute to STRS Ohio...7 (Side 2) For Certification of Teaching Service in Ohio Public Universities, Colleges (Side 2) or Institutions for Which 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 Monthly Remittance of Payroll Deductions for Purchased Service Credit...16 Employers Manual Contents (6/15)

2 SECTION 11 PURCHASING SERVICE CREDIT Contents cont. 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 Report Payroll deduction for purchase of service credit report...23 Online Purchase Service Reporting...24 Sample Purchase service credit screen...24 Notification of Adoption of a Tax-Deferred Payroll Deduction Plan...25 Confirmation of Tax-Deferred Payroll Deduction Plan...25 Sample Forms Notification of Adoption of a Tax-Deferred Payroll Deduction Plan...26 Sample Board Resolution for Adoption of a Tax-Deferred Payroll Deduction Plan...27 State Teachers Retirement System of Ohio

3 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. (Section , R.C.). Requires employer certification and employer contributions (see forms on Pages 3 5). See Section 10 for more information. Ohio noncontributing public teaching service (Section , R.C.). 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 forms 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 (Section , R.C.). Requires employer certification (see forms on Pages 9 10). Previously exempted or waived Ohio public service (Section , R.C.). Requires employer certification as either or service. (See forms on Pages ) Service as an Ohio public school board member (Section , R.C.). 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 (Sections and , R.C.). Interrupted teaching due to military service allows members to purchase credit for periods of employment missed due to being activated for military service (Section , R.C.). Ohio National Guard or reserve military service, including Ohio Army and Air National Guards, and reserve military service with the U.S. armed forces (Sections and , R.C.). Teaching in a public school, college or university in another state, territory or possession of the United States (Section , R.C.). Teaching in a private school, college or university in the United States (Section , R.C.). Teaching in a school operated by or for the U.S. government (Section , R.C.). Other paid public service: service with a governmental agency or subdivision of another state or with the U.S. government (Section , R.C.). Employers Manual Page 1 (6/15)

4 Restoration or transfer of service credit between STRS Ohio and other Ohio retirement systems (Sections and , R.C.). Non-Ohio-valued credit (Section , R.C.). 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 taxdeferred 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, 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. Page 2 (6/15) State Teachers Retirement System of Ohio

5 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 Page 3 (6/15) Sample Form (Side 1)

6 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 Page 4 (6/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

7 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. I further understand that if I decide to buy this credit, and at least one cost statement is issued before retirement, I may purchase service credit up to three months after the effective retirement date, as long as the benefit calculation has not been finalized. For example, if the retirement effective date is July 1, service credit must be purchased by Sept. 30. Member s Social Security number Applicant s name or STRS Ohio account number 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 number, was absent from the beginning Board of education, institution or university See back for the purpose of. The leave was requested or the notification of resignation received. Signed Title Date (See reverse side for eligibility and procedural requirements.) 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 number, 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. Signed Title Date (See reverse side for eligibility and procedural requirements.) Date /14/500 Employers Manual Page 5 (6/15) Sample Form (Side 1)

8 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: 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 under an open window, no additional credit for resignation due to pregnancy or adoption can be obtained. PROCEDURAL REQUIREMENTS: 1. The employer who granted the resignation or leave of absence must complete Part 1 of this form. 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.) 2. The employer to whom the member first returned to regular employment after the resignation or leave of absence must complete Part 2 of this form. Regular employment is defined as the return 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. 3. STRS Ohio will evaluate the completed form and, if the member is eligible to purchase credit, will provide the member with a cost statement. 4. 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. (See reverse side for certification form.) , 7/14/500 Page 6 (6/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

9 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.) Fiscal Years* From To Month Year Month Year For Service Before July 1, 1978 School Days Employed Hours Employed (Complete only if days of 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 , 8/15/500 Employers Manual Page 7 (12/15) Sample Form (Side 1)

10 CERTIFICATION FORM INSTRUCTIONS Certification of Teaching Service Member Did Not Contribute to STRS Ohio These forms are to be used to certify public teaching service rendered in an Ohio public school or Ohio public college or university for which no retirement contributions were deducted from your pay. 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 , 8/15/500 Page 8 (12/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

11 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 , 7/15/1M Employers Manual Page 9 (12/15) Sample Form (Side 1)

12 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)? 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 , 7/15/1M Page 10 (12/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

13 CERTIFICATION OF NONTEACHING PUBLIC SCHOOL SERVICE IN OHIO ON WHICH NO CONTRIBUTIONS WERE SENT TO SCHOOL EMPLOYEES RETIREMENT SYSTEM For Members Enrolled in the STRS Ohio Defined Benefit Plan Applicant s name Social Security no. First Middle Last Maiden Address Birth date Phone ( ) Month Day Year Area code EMPLOYER CERTIFICATION This part must be completed by the employer or custodian of records for the service to be purchased. Certification must be made from actual payroll records or a legitimate source of documentation. An incomplete or improperly certified form will be returned directly to the member. Employer Applicant s job title RECORD OF PURCHASABLE SERVICE* School Year July 1 June 30 Salary Salary Salary 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. (continued) Employers Manual Page 11 (6/13) Sample Form (Side 1)

14 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? 4. Yes No Did the member contribute on the above certified service 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: Signature Date Certifying official Title Department Address Phone ( ) Area code Employer Please return original form directly to the member. After reviewing this form, the member should forward it to: State Teachers Retirement System of Ohio, 275 E. Broad St., Columbus, OH OFFICE USE ONLY D.O.B. 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. Certified by Date Please return to STRS Ohio , 5/13/250 Page 12 (6/13) Sample Form (Side 2) State Teachers Retirement System of Ohio

15 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 (see Page 23). The payroll deduction for purchase of service credit report is available on ESS or will be sent to the employer. 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 each 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 Page 13 (6/15)

16 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 27.) 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 26.) 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. Page 14 (6/15) State Teachers Retirement System of Ohio

17 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 24 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 Page 15 (6/15)

18 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 (see sample on Page 23) will be sent to employers listing all members who are purchasing service credit and the expected deductions. This report must be completed and returned to STRS Ohio along with payment for the total amount. 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. STRS Ohio prefers employers submit this information through the employer website using ESS. An example of this screen can be found on Page 24. Registration is required to use this feature. Employers not registered to submit this information electronically will continue to receive the paper report shown on Page 23. Page 16 (6/15) State Teachers Retirement System of Ohio

19 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 2015 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 Page 17 (6/15) Sample Form (Side 1)

20 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: Page 18 (6/15) Sample Form (Side 2) State Teachers Retirement System of Ohio

21 APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION For the purchase of 100% Liability Service SUSAN LEARN 123 FIRST AVE. COLUMBUS, OH Date: 05/07/2015 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 2015 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 Page 19 (6/15) Sample Form (Page 1)

22 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: Page 20 (6/15) Sample Form (Page 2) State Teachers Retirement System of Ohio

23 APPLICATION TO PURCHASE CREDIT THROUGH PAYROLL DEDUCTION For the purchase of Restored OPERS Service Credit JANE DOE 123 MAIN ST. COLUMBUS, OH Date: 04/28/2015 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 2015 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 Page 21 (6/15) Sample Form (Page 1)

24 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: Page 22 (6/15) Sample Form (Page 2) State Teachers Retirement System of Ohio

25 PAYROLL DEDUCTION FOR PURCHASE OF SERVICE CREDIT REPORT C001 BUCKEYE CITY SCHOOLS 100 MAIN ST ANYTOWN, OH JANUARY JULY Payments must be received by STRS Ohio by the 15th of the month following deductions. Name S.S. Number Credit Type P/R* Minimum Payment ExpectedPayment Amount Deducted** DOE, JANE XXX-XX S R $ SMITH, OTIS XXX-XX S R $ LEE, ROBERT XXX-XX S P $ LEARN, IDA XXX-XX S P $ TOTAL $ * P/R column indicates payment is Pretax(P) or Regular(R) ** The Amount Deducted column should be completed by the employer only if the amount actually deducted is different from the expected amount. MEMBERS WITH FINAL PAYMENTS WITHIN THREE MONTHS Assuming receipt of expected payments by STRS Ohio Name Ref. Num. Dist. Last Month Dist. Last Payment Amt. Doe, Jane March $ ADDITIONS (A payroll deduction application form, completed by both the member and the employer, must be included for all additions.) Name S.S. Number Amount Deducted Total Amount Enclosed $ Page 1 of 1 Employers Manual Page 23 (6/15) Sample Report

26 ONLINE PURCHASE SERVICE REPORTING You can submit information to STRS Ohio about members who are purchasing service credit through payroll deduction using ESS on the employer website. Through the online purchase service report, you can: Submit payment information for members purchasing service credit through payroll deduction, Add new members to your purchase service report, and View final payment information for members who are within three months of making final payments. You must be an authorized user to access purchase service reports on our website. Access can be granted via supervisor request sent to 07/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/2015 Purchase service credit screen Page 24 (6/15) Web Screen State Teachers Retirement System of Ohio

27 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 26) 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 27. 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. Employers Manual Page 25 (3/15)

28 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 Page 26 (6/14) Sample Form State Teachers Retirement System of Ohio