Purpose
The purpose of this bulletin is to notify agencies of the 2021 maximum salary limit for members of ORP and VDC in Tier 6.
Affected Employees
Employees who are Tier 6 members of ORP or VDC are affected.
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 $290,000 for the 2021 plan year, which is the calendar year for ORP and VDC Tier 6 participants.
Effective Dates
Effective as of Administration checks dated January 6, 2021 and Institution checks dated January 14, 2021.
OSC Actions
OSC will update PayServ to reflect the Maximum Salary Limit for the 2021 Calendar Year.
PayServ will automatically stop ORP and VDC contributions when an employee’s pensionable earnings reach the $290,000 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.