Purpose:

The purpose of this bulletin is to notify agencies of the 2023 plan year maximum salary limit and pensionable overtime earnings limit for Tier 5 TRS members.

Affected Employees:

Tier 5 members of TRS Plan Type 86 are affected.

Background:

In accordance with Section 415 of the Internal Revenue code, providing 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 $330,000 for the 2023 calendar year for TRS Tier 5 plan participants.

In accordance with Chapter 504 of the Laws of 2009, Legislation established an annual, pensionable overtime earnings limit of $15,000 effective January 1, 2010. This amount increases each calendar year thereafter by three percent.

Effective Dates:

Effective in Administration paychecks dated July 5, 2023, and Institution paychecks dated July 13, 2023.

OSC Actions:

OSC will update PayServ to reflect the Maximum Salary Limit for calendar year 2023.

PayServ will automatically stop TRS contributions when employees’ pensionable earnings reach the $330,000 limit. Contributions will resume the first paycheck of the following calendar year.

OSC will update PayServ to reflect the pensionable overtime earnings limit for Plan Year 2023 to $22,028.01 for Tier 5 TRS members.

Questions:

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