How Calamity Days Affect Summer Retirements 1 50 343c, 6/16/1 - PDF document

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version How Calamity Days Affect Summer Retirements 1 50 ‐ 343c, 6/16/1 Calamity days During today’s webinar, I will: • Explain how calamity days affect a member planning to retire June 1, • Discuss options for the retiring member, • Review the employer’s responsibilities, • Explain the process for purchasing calamity days, and • How to complete retirement reports for retiring members choosing to purchase calamity days. 2 employer_education@strsoh.org 1

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version How calamity days affect a retiring member If calamity days extend the school year into June, it could impact a member’s retirement. Example: ― Your district’s last teacher workday was originally scheduled for May 31. ― Your district incurred seven calamity days. ― The district decides to make up two calamity days by extending its school year by two days. ― Your district’s last teacher workday is now June 2. 3 How calamity days affect a retiring member • A member planning to retire June 1, cannot work after May 31 and still retire effective June 1. • If member doesn’t work the additional days, he or she will not complete his or her contract for that school year. • Any time a member does not complete the full contract, the member’s final average salary may be affected. 4 employer_education@strsoh.org 2

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Options for the retiring member The retiring member has three options: 1. The member can work in June and retire effective July 1. 2. The member can choose not to work in June and still retire effective June 1. ― The member would forfeit salary payments and contributions for the days not worked. 5 Options for the retiring member 3. The member can choose not to work in June and still retire effective June 1 by completing contributions for calamity days. The member would: ― Forfeit salary payments for the days not worked. ― Complete contributions by purchasing calamity days. 6 employer_education@strsoh.org 3

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Options for the retiring member • Section 3307.77, R.C., grants an educator who is under contract the right to complete contributions for any payroll period during which the educator was prevented from making regular retirement contributions for certain reasons. • Administrative Code Rule 3307:1-3-06 states that members may purchase calamity days by remitting member contributions on the salary they would have earned had they worked the extra day(s). 7 Options for the retiring member Before deciding whether or not to purchase calamity days, a member should: • Consult an STRS Ohio benefits counselor toll-free at 888-227-7877. • Request benefit estimates for each option to determine the possible effect on final average salary. 8 employer_education@strsoh.org 4

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Employer responsibilities and process • If the member chooses to purchase calamity days, the member will be instructed to contact the employer. • Employer calculates the amount of member contributions owed for calamity days. ― Daily rate X X member contribution rate X number of calamity days member chose to purchase. 9 Employer responsibilities and process Two methods to report the purchase to STRS Ohio: 1. Employer includes and remits the member contributions for the calamity days with a current fiscal year payroll report (must be submitted before the member’s effective retirement date); or or 10 employer_education@strsoh.org 5

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Employer responsibilities and process Two methods to report the purchase to STRS Ohio: 2. Member writes a check payable to STRS Ohio for the member contributions for the calamity days and the employer forwards the check and a letter explaining the payment to STRS Ohio. ― Letter should include member’s name, last four digits of Social Security number and calculation of the member contributions. ― Check and letter should be mailed to the STRS Ohio Accounting Department, 275 E. Broad St., Columbus, OH 43215. 11 Employer responsibilities and process • Under Section 3307.77, R.C., employers are responsible for remitting the corresponding employer contributions when a member purchases calamity days. 12 employer_education@strsoh.org 6

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version How to complete retirement reports • Method used to pay the member contributions will determine how you complete the deposit and service report. • If you included and remitted the member contributions for the calamity days with a current fiscal year payroll report: ― List the member’s full contract amount on Line 1 of the deposit and service report. ― Indicate member has purchased days in the comments section of the deposit and service report. ― Be sure to include contributions in your district’s annual report. 13 How to complete retirement reports If the member wrote a check payable to STRS Ohio for the member contributions for the calamity days: • List the member’s actual earnings for the fiscal year on Line 1 of the deposit and service report. • Note the number of calamity days being purchased in the comments section and indicate the purchase was made directly to STRS Ohio by the member. • Do no not t include these contributions in your district’s annual report. 14 employer_education@strsoh.org 7

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Summary • If school year is extended into June, encourage retiring member to contact an STRS Ohio benefits counselor. • If the member decides to purchase calamity days, calculate the amount of member contributions owed and remit through payroll or by sending the member’s personal check with a letter. • If contributions are remitted through payroll, remember to account for the purchase on your district’s annual report. • Be sure to indicate the purchase appropriately on the deposit and service report. 15 Calamity days We are here to assist you! • Call toll-free: 888-5 888-535-40 35-4050 50 ― Ask to speak to an employer advisor. • Send an email: repor report@strsoh.org @strsoh.org 16 employer_education@strsoh.org 8

STATE TEACHERS RETIREMENT SYSTEM OF OHIO How Calamity Days Affect Summer Retirements On ‐ Demand Version Calamity days Thank you for watching! • Questions and answers are available on our website under On- Demand Webinars. To view, click on “How Calamity Days Affect Summer Retirements.” 17 employer_education@strsoh.org 9