Purpose:

The purpose of this bulletin is to notify agencies of the maximum salary limit for Tier 5 members of PFRS and ERS for fiscal year 2024.

Affected Employees:

Employees who are Tier 5 members of PFRS, Plan Type 85, or ERS, Plan Type 87, are affected.

Background:

In accordance with Section 415 of the Internal Revenue code, which provides dollar limitations for benefits and contributions under qualified retirement plans, the annual compensation limit under Section 401(a)(17), 404(I), 408(k)(3)(C), and 408(k)(6)(D)(ii) will increase to $345,000 for fiscal year 2024.

Effective Dates:

Effective beginning Institution paychecks dated April 4, 2024, and Administration paychecks dated April 10, 2024.

OSC Actions:

OSC will update PayServ to reflect the Maximum Salary Limit for fiscal year 2024.

PayServ will automatically stop PFRS and ERS contributions once employees’ pensionable earnings reach the $345,000 limit. Contributions will resume the first paycheck of the following fiscal year.

Questions:

Questions regarding this bulletin may be directed to the Payroll Retirement mailbox.