Special 20- and 25-Year Plans

For PFRS Tier 2, 3, 5 and 6 Members, (Sections 384, 384-d and 384-e)

IRS Pension Limitation

Internal Revenue Code Section 401(a)(17) limits the amount of earnings that qualified pension plans, including PFRS, may use to calculate benefits. It affects members who first join on or after April 1, 1996, and currently excludes earnings over $270,000 (effective April 1, 2017) in the State’s fiscal year (April 1 – March 31). The amount is set by federal law, and is periodically adjusted for inflation.