161.220(10), 26 C.F.R.
NECESSITY, FUNCTION, AND CONFORMITY:
161.310(1) requires the
board of trustees to promulgate administrative regulations for the
administration of the funds of the retirement system and for the transaction of
161.716 requires the board of trustees to
promulgate administrative regulations as are necessary to remove any conflicts
with federal laws and to protect the interests of the members and survivors of
members of the retirement system. This administrative regulation establishes
the increase in compensation limit as provided by
Section 1. Definition. "Annual compensation"
is defined by
Increase in Limit. The annual
compensation of each member taken into account in determining benefit accruals
in any plan year beginning after December 31, 2001, shall not exceed $200,000.
(1) For purposes of determining benefit
accruals in a plan year beginning after December 31, 2001, compensation for any
prior determination period shall be limited as provided in Section 3 of this
the determination period consists of fewer than twelve (12) months, the annual
compensation limit shall be an amount equal to the otherwise applicable annual
compensation limit multiplied by a fraction, the numerator of which shall be
the number of months in the short determination period, and the denominator of
which shall be twelve (12).
the compensation for any prior determination period is taken into account in
determining a plan member's contributions or benefits for the current plan
year, the compensation for the prior determination period shall be subject to
the applicable annual compensation limit in effect for that prior
limit on annual compensation in Section 2 of this administrative regulation
shall be adjusted for cost-of-living increases in accordance with
(2) The cost-of-living adjustment in effect
for a calendar year shall apply to annual compensation for the determination
period that begins with or within the calendar year.
In determining benefit accruals in
plan years beginning after December 31, 2001, the annual compensation limit in
Section 2 of this administrative regulation shall be:
(1) $150,000 for any determination period
beginning in 1996 or earlier for members who became participants on or after
July 1, 1996;
(2) $160,000 for any
determination period beginning in 1997, 1998, or 1999 for members who became
participants on or after July 1, 1996;
(3) $170,000 for any determination period
beginning in 2000 or 2001 for members who became participants on or after July
1, 1996; or
Effective only for
the 1996 plan year, In determining the compensation of an employee eligible for
consideration pursuant to this provision,
except that the term, "family", shall include only the spouse of the member and
any lineal descendant of the employee who has not attained age nineteen (19)
before the close of the year.
The annual compensation on which contributions are reported
shall not exceed the maximum annual compensation limit as established in
Sections 2 through 4 of this administrative regulation.
(1) The retirement system shall notify
employers of the maximum annual compensation limit.
(2) Each employer shall report contributions
on all annual compensation up to the maximum annual limit.
(3) Once an employee's annual compensation
has reached the maximum annual limit, the employer shall continue to report the
employee's creditable compensation but shall not report any further employer or
employee contributions on the employee's annual compensation.
(4) If excess contributions are erroneously
reported, the retirement system shall refund the excess contributions to the
employer for distribution to the employee after making payroll deductions in
accordance with federal and state law.
Section 6. A member who became a participant
prior to July 1, 1996, shall be an eligible participant for purposes of 26