Purpose

The purpose of this bulletin is to notify agencies of the 2020 maximum salary limit for members of ORP in Tiers 1 through 5.

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 $285,000 for the 2020 calendar year.

Affected Employees

Employee who are members of ORP in Tiers 1-5 are affected.

Effective Date(s)

Institution Paychecks dated January 2, 2020

Administration Paychecks dated January 8, 2020

OSC Actions

OSC will update PayServ to reflect the Maximum Salary Limit for 2020 Calendar Year.

PayServ will automatically stop ORP contributions when an employee’s pensionable earnings reach the $285,000 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.