Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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History of Pensionable Salary Limits



Introduction
State-administered Pension Funds Covered
Pensionable Salary Limits by Year

Introduction

Under Chapter 113, P.L. 1997, the amount of compensation (salary) used to determine member contributions and benefits, for the State-administered pension systems listed below, may not exceed the compensation limitation of section 401(a)(17) of the federal Internal Revenue Code. This compensation (salary) limitation is adjusted annually, based upon cost of living increases.

In other words, under the provisions of the Internal Revenue Code, Section 401(a)(17), for the "qualified" defined benefit plans listed below [401(a)(2)], the current federal ceiling on pensionable salary ($265,000 in 2015) applies to the base salaries of members of these pension plans. Salary earned by a member in excess of this amount is not pensionable; that is, it may not be used in determining member contributions and benefits.

The chart below shows the pensionable salary limits in effect from 1998 to the present.

State-administered Retirement Sytems to Which the Limits Apply

The pensionable salary limits apply for members of the following State-administered pension funds:

  • Teachers' Pension and Annuity Fund
  • Judicial Retirement System
  • Public Employees' Retirement System
  • Police and Firemen's Pension Fund
  • State Police Retirement System

Pensionable Salary Limits from 1998 to the Present

The chart below shows the pensionable salary limits in effect for each year, beginning with the year 1998.

Pensionable Salary Limits under Chapter 113, P.L. 1997
Year
Salary Limit
1998
$160,000
1999
$160,000
2000
$170,000
2001
$170,000
2002
$200,000
2003
$200,000
2004
$205,000
2005
$210,000
2006
$220,000
2007
$225,000
2008
$230,000
2009
$245,000
2010
$245,000
2011
$245,000
2012 $250,000
2013 $255,000
2014 $260,000
2015 $265,000

 

 

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Last Updated: November 17, 2014