Purpose

To notify agencies of the 2019 maximum salary limit for members of ORP and VDC 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 $280,000 for the 2019 plan year, which is the calendar year for ORP and VDC Tier 6 participants.

Affected Employees

Employees who are Tier 6 members of ORP or VDC

Effective Date(s)

Institution Paychecks dated January 3, 2019

Administration Paychecks dated January 9, 2019

OSC Actions

OSC will update PayServ to reflect the Maximum Salary Limit for the 2019 Calendar Year.

PayServ will automatically stop ORP and VDC contributions when an employee’s pensionable earnings reach the $280,000 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.