Members Retirees Employers
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Penalties

It is important that you remit timely and accurate reports and payments to SERS. The information is crucial to the calculation and payment of benefits to members or their beneficiaries.

As provided in the first paragraph of Ohio Revised Code 3309.571:

The school employees retirement system shall impose the following penalties, which may be collected in the same manner as described in division (B) of section 3309.51 of the Revised Code.

The law states that SERS shall impose the following penalties. There is no allowance for one-time forgiveness or other exceptions. SERS will remove or reduce a penalty if SERS caused the delay, and SERS may extend a due date for “good cause” if the request is received before the original due date.

Payment Penalties

As explained in paragraph (A) of the statute:

(A) For a failure to transmit contributions withheld from employees not later than the date specified under rules adopted by the school employees retirement board, one hundred  dollars per day for each day the employer fails to transmit the contributions;

Employee contributions are to be remitted to SERS no later than five business days from the pay date/reporting date.

You will be penalized $100 per day for each business day you do not transmit employee contributions on time. This penalty will accrue until the contribution is received.

As explained in paragraph (B) of the statute:

(B) For a failure to transmit any amount due the employer's trust fund not later than the date specified under rules adopted by the board, one hundred dollars per day for each day the employer fails to transmit the amounts; Employer Trust Fund covers all employer payments to SERS, such as employer contributions, surcharge, the Annual Employer Statement Balance, Service Credit Purchase (SCP), and Early Retirement Incentive (ERI). Each of these payment types has its own set of due dates.

You will be penalized $100 per day for each business day you do not transmit any amount due to the employer’s trust fund on time. This penalty will accrue until the contribution is received. For employers using the Ohio Department of Education (ODE) Foundation Program, payment of the penalty may be deducted from the amounts directed to employer contributions.

For all other employers, the penalty is paid directly using one of the payment remitting options

Member Enrollment Penalties

As explained in paragraph (D) of the statute:

For a failure to submit a record in the form of a statement required by section 3309.28 of the Revised Code, fifty dollars per record for each month the record is not filed, except that the penalty shall not exceed three hundred dollars.

Section 3309.28 references the information required by SERS for member enrollment. The penalty is $50 per member enrollment for each month you fail to submit the record and cannot exceed $300 per record.

For coaches and other supplemental employees, SERS will not assess a late enrollment penalty as long as you enroll the employee prior to submitting the first Member Contribution Report for that employee to SERS. If you have enough information to properly pay the employee, you should have enough information to enroll the member through eSERS.

For employers using the ODE Foundation Program, payment of the penalty may be deducted from the amounts directed to employer contributions.

For all other employers, the penalty should be paid directly using one of the payment remitting options.

Reporting Penalties

As explained in paragraph (C) of the statute:

(C) Except for a statement required by section 3309.28 of the Revised Code, for a failure to submit, complete, or correct any payroll information or other report required under this chapter not later than the date specified under rules adopted by the board, one hundred dollars per day for each day the employer fails to submit, complete, or correct the information or report, except that the penalty shall not exceed one thousand five hundred dollars;

This section covers all other employer reporting to SERS. Payroll (contribution) reporting is currently due no later than five business days from the pay date/reporting date. Other reports have their own due dates. The Payment Remittance Form is due prior to, or concurrent with, every employer payment made to SERS with the exception of foundation deductions made directly by the ODE Foundation Program to SERS. You will be penalized $100 per day for each business day you do not submit, complete, or correct contribution reporting information on time. This penalty cannot exceed $1,500 per report.

For employers using the ODE Foundation Program, payment of the penalty may be deducted from the amounts directed to employer contributions.

For all other employers, the penalty should be paid directly using one of the payment remitting options.