Tuesday, March 08, 2011

Taxpayers picking up the pickup's pickup

A reader asked about the "pickup" clause in administrator contracts. Good question.

For state retirement, the school district and the employee contribute to the employee's retirement -- unless the employee works for Olentangy, of course.

In Olentangy, the district -- which means the taxpayers -- "picks up" the employee contribution. In addition, since the district picked up the employee's contribution, that amount is considered income and subject to retirement contributions, from both the district and employee. The district -- taxpayers, once again -- "picks up" the employee contribution on the original "pickup," the pickup on the pickup.

So administrator income is actually 11% higher than advertised.

Make sense?

It doesn't have to. But you pay for it anyway.

1 comment:

Anonymous said...

Insidious.

Just like the retire-rehires.

They retire, then they are promptly re-hired at the same salary they retired at.

We pay into their retirement again.

Let's recap:

"X" OLSD employee retires and begins collecting retirement.

"X" OLSD employee is re-hired at the beginning of the next school year, at the same salary that s/he retired at.

"X" OLSD remployee now, again, receives taxpayer funds into their retirement account.

What's wrong with this picture?