||Maximum Salary Limit for Optional Retirement Plan (ORP) and Voluntary Defined Contribution (VDC) Retirement Tier 6 for the 2018 Calendar Year
||To notify agencies of the 2018 maximum salary limit for members of ORP and VDC in Tier 6.
||In accordance with Section 415 of the Internal Revenue code, which provides for dollar limitations on benefits and contributions under qualified retirement plans, the annual compensation limit under Section 401(a), 404(I), 408 (k) (3) (C), and 408 (k) (6) (D) (ii) will increase to $275,000 for the 2018 plan year, which is the calendar year for ORP and VDC Tier 6 participants.
|Employees who are Tier 6 members of ORP or VDC.
||Institution Paychecks dated January 4, 2018.
Administration Paychecks dated January 10, 2018.
||OSC will update PayServ to reflect the Maximum Salary Limit for 2018 Calendar Year.
PayServ will automatically stop ORP and VDC contributions when an employee’s pensionable earnings reach the $275,000 limit. Contributions will resume in the first paycheck of the following calendar year.
||Questions regarding this bulletin may be directed to Payroll Retirement mailbox.