Our district recently negotiated a settlement with one of our employees and we need to know if retirement contributions should be deducted from the settlement payment?
All settlements must be reviewed by STRS Ohio prior to remitting contributions on these types of payments. Please contact the STRS Ohio Employer Reporting Education team 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.
Related Questions
- Our district recently negotiated a settlement with one of our employees and we need to know if retirement contributions should be deducted from the settlement payment?
- Can contracts include provisions for payment of disability insurance if the district only offers it to specific employees (at the district’s expense)?
- What are the district benefits of educating my employees about saving for retirement?
