For ERS Tier 3 and 4 Members
(Articles 14 and 15)
Internal Revenue Code Section 401(a)(17) limits the amount of salary that qualified pension plans, including the New York State and Local Retirement System, may use in calculating benefits. It affects members who join on or after April 1, 1996, and currently excludes earnings over $245,000 (effective April 1, 2011) in the State’s fiscal year (April 1st – March 31st). The amount is set by federal law and is periodically adjusted for inflation.