Code of Maine Rules
94 - INDEPENDENT AGENCIES
411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS)
Chapter 412 - LIMITATIONS ON COMPENSATION
Section 411-412-2 - COMPLIANCE WITH CODE SECTION 401(a)(17) FOR THE LIMITATIONS ON COMPENSATION

Universal Citation: 94 ME Code Rules ยง 411-412-2

Current through 2024-38, September 18, 2024

1. Effective with respect to plan years beginning on and after July 1, 1996, and before July 1, 2002, the annual compensation of a member that exceeds $150,000 (as adjusted for cost-of-living increases under Code Section 401(a)(17)(B)) shall be disregarded for purposes of computing employee and employer contributions to or benefits due from the retirement program for any plan year. Effective only for the plan year beginning July 1, 1996, in determining the compensation of an employee eligible for consideration under this provision, the rules of Code Section 414(g)(6) shall apply, except that in applying such rules, the term "family" shall include only the spouse of the member and any lineal descendants of the employee who have not attained age 19 before the close of the year.

2. Effective with respect to plan years beginning on and after July 1, 2002, the annual compensation of a member that exceeds $200,000 (as adjusted for cost-of-living increases under Code Section 401(a)(17)(B)) may not be taken into account in determining benefits or contributions due for any plan year.

A. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

B. If the determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12.

C. If the compensation for any prior determination period is taken into account in determining a member's contributions or benefits for the current plan year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period.

3. Pursuant to section 13212(d)(3)(a) of the Omnibus Budget Reconciliation Act of 1993 (OBRA '93), and the regulations issued under that section, eligible members are not subject to the limits of Code Section 401(a)(17), and the maximum compensation used in computing employee and employer contributions to or benefits due from the retirement program for eligible members shall be the maximum amount allowed by the retirement program to be so used on July 1, 1993. The limits referenced in subsections (1) and (2) above apply only to plan years beginning on and after July 1, 1996, and only to individuals who first become members in plan years beginning on and after July 1, 1996.

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