Internal Revenue Code Section 401(a)(17) limits the amount of earnings 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 excludes earnings over $285,000 from April 1, 2020 – March 31, 2021, and earnings over $290,000 from April 1, 2021 – March 31, 2022. The amount is set by federal law and is periodically adjusted for inflation. In addition, for Tier 6 members, reportable salary may not exceed the salary of the Governor of the State of New York, which is set by law.*
*Visit our Tier 6 Earnings Limits page for the Governor’s current salary.