Purpose:

The purpose of this bulletin is to notify agencies of the 2024-25 school 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 compensation limit under Section 401(a), 404(I), 408 (k) (3) (C), and 408 (k) (6) (D) (ii) will increase to $345,000 for the 2024-25 school year for TRS Tier 5 plan participants.

In accordance with Chapter 504 of the Laws of 2009, Legislation established a pensionable overtime earnings limit of $15,000. This amount increases each year thereafter by three percent.

Effective Dates:

Effective in Administration paychecks beginning July 3, 2024, and Institution paychecks beginning July 11, 2024.

OSC Actions:

OSC will update PayServ to reflect the Maximum Salary Limit for school year 2024-25.

PayServ will automatically stop TRS contributions when employees’ pensionable earnings reach the $345,000 limit. Contributions will resume the first paycheck of the following school year. 

OSC will update PayServ to reflect the pensionable overtime earnings limit for school Year 2024-25 to $22,688.85 for Tier 5 TRS members.

Questions:

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