Purpose

To notify agencies of the 2017 maximum salary limit for members of TIAA (Plan Type 7Z) in Tier 6.

Background

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 $270,000 for the 2017 plan year, which is the calendar year for TIAA Tier 6 participants.

Affected Employees

Employees who are members of TIAA in Tier 6

Effective Date

Institution and Administration Paychecks for the calendar year 2017

Eligibility Criteria

Members of TIAA, Retirement Plan 7Z in the following benefit plans: T6S030, T6S035, T6S045, T6S060, T6S575, T6C030, T6C035, T6C045, T6C060, and T6C575.

OSC Actions

OSC will update PayServ to reflect the Maximum Salary Limit for 2017 Calendar Year.

PayServ will automatically stop Tier 6 employees enrolled with TIAA ORP when their pensionable earnings reach the $270,000 limit.  Contributions will resume in the first paycheck of the following calendar year.

Questions

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