State Agencies Bulletin No. 1846

Subject

Maximum Salary Contribution Limit for Tier 6 members of the following New York State and Local Retirement Systems:

• New York City Teachers Retirement System (NYCTRS)

• New York City Board of Education Retirement System (NYCBERS)

• New York City Employee Retirement System (NYCERS)

• New York State Teachers Retirement System (NYSTRS)

Date Issued

August 14, 2020

Purpose

The purpose of this bulletin is to notify agencies of the 2020 maximum salary limit for Tier 6 members of NYCTRS (7S), NYCBERS (7T), NYCERS (7U), and NYSTRS (7X).

Background

In accordance with Senate Resolution No. 958 of Bill No. C00243, approved on April 1, 2020, 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 $225,000 for the 2020 plan year.

Affected Employees

Employees who are Tier 6 members of NYCTRS, NYCBERS, NYCERS, or NYSTRS are affected.

Effective Dates

Effective immediately.

OSC Actions

OSC will update PayServ to reflect the Maximum Salary Limit for the 2020 plan year.

PayServ will automatically stop NYCTRS, NYCBERS, NYCERS, and NYSTRS contributions when an employee’s pensionable earnings reach the $225,000 limit. Contributions will resume in the first paycheck of the following plan year.

Questions

Questions regarding this bulletin may be directed to the Payroll Retirement mailbox.