Covered Compensation

Compensation subject to SERS contributions includes, but is not limited to:

• Regular base salary and hourly wages
• Overtime paid to non-exempt employees
• Pick up on Pick-up Plan
• Pay for used vacation and sick leave
• Paid holiday and calamity days
• Across-the-board retroactive wage settlements
• Longevity/length of service payments (per written contract or policy applicable to all employees)
• Merit increases
• Employee payments to an eligible retirement plan (e.g. 403(b), 457(b), 401(k))
• Backpay awards reinstating an employee without interruption (submit within same fiscal year to avoid interest)
• Extended days and commissions per contract
• Workers’ Compensation Salary Continuation
• Lump sum payments, retention payments, education payments, and signing bonuses (must be provided for in a collective bargaining agreement, individual contract, or school district policy)
• Retention payments written in the contract
• Education payments written into a contract or school district policy
• Signing bonus written into a contract or school district policy

Compensation not subject to SERS contributions includes, but is not limited to:

• Unused compensatory time (comp time) cash out
• Unused leave time (vacation/sick/personal) cash out
• Attendance, which are payments for limited use of sick leave per a policy or contract
• Wellness rewards, which are payments to employees for achieving measurable health goals as set forth in a written policy
• Recruitment, which is a payment for referring a job applicant who is hired
• Severance payment
• Bonus payment, which is a discretionary payment not governed in a contract
• Amounts paid to an employee for life insurance, sickness, accident, endowment, health, medical, hospital, dental, or surgical coverage or in lieu of providing insurance
• Incidental benefits including lodging, food, laundry, clothing/uniform allowance, and parking
• Services furnished by the employer, including use of the employer’s property or equipment, and cell phones
• Reimbursement for job-related expenses authorized by the employer, including moving and travel expenses related to professional development
• Compensation made on behalf of an employee exceeding the allowable limit under federal tax law
• Anything of value paid to an employee based on or attributed to retirement or an agreement to retire.
• Payments made as a differential payment for an employee who enters active military duty for more than a month

Employers should submit their request in writing prior to the payment being issued to the member.

Documentation

Depending on the type of payment being issued, Employer Services may request to see documentation supporting the payment being issued, including a copy of the:

• Contract
• Collective bargaining agreement
• School district policy
• Salary schedule
• Grievances
• Settlement agreements

Requests should include complete information about the compensation. SERS may request additional information to make a determination.

If the employer does not request a determination and the payment is later determined to not be SERS compensation, any contributions received are considered unauthorized and refunded to the employer once the employee’s account is adjusted through eSERS.

If the payment is determined to be compensation, a charge will be made to the employer for both the employee and employer contributions, plus interest.

Once the cost has been calculated and submitted, the employer has until June 15 to send payment.

The employee contributions should be withheld from the employee’s payroll during each payroll period in an amount equal to the current contribution rate, which is set by the Board. The employee contribution rate is currently 10%. The employer contribution rate is 14%.

Per pay contributions are to be remitted to SERS no later than five business days from the pay date. It is important to remit contributions promptly and accurately. Failure to do so may result in the accural of penalties. Employee or survivor benefits are dependent on accurate compensation information reported to SERS.

Payments for employee contributions are to be remitted to SERS no later than five business days from the pay date.

Payment of employer contributions for employers not using the Ohio Department of Education and Workforce’s Foundation Program also are to be remitted to SERS no later than five business dates from the pay date.

Payment of employer contributions for employers using the Ohio Department of Education and Workforce’s Foundation Program are always considered on time.