What are the two sources of contribution to state retirement systems for public school employees and how does the definition of annual salary make a difference in the amount of the contribution?
What will be an ideal response?
ANS:
One contribution is provided by the employer or the public school district. The other source of contribution is provided by the employee. The contribution is a fixed percentage of an employee's annual salary, but annual salary is defined in different ways across states. In some instances, and employee's salary is restricted to only the base amount as found on the salary schedule. Other state retirement systems use a gross salary that includes the base amount as well as any supplemental income received by the employee during the work year.
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