PERAC Memo #6 - 2020: 2020 Limits under Section 23 of Chapter 131 of the Acts of 2010
2020 Limits under Section 23 of Chapter 131 of the Acts of 2010
View original on mass.gov →Summary
Sets the 2020 cap on regular compensation for members who joined a retirement system after January 1, 2011 at $182,400 — 64% of the $285,000 federal 401(a)(17) limit per PERAC Memo #5/2020. This limit derives from Section 23 of Chapter 131 of the Acts of 2010 and governs what portion of salary may be used when calculating retirement allowances under G.L. c. 32.
Full Text
Memorandum Memorandum #06: 2020 Limits under Section 23 of Chapter 131 of the Acts of 2010 Date: 01/06/2020 Referenced Sources: PERAC Website PERAC Memo #06, 2020
Skip table of contents Table of Contents To All Retirement Boards: Commission Members Downloads Contact To All Retirement Boards: M E M O R A N D U M
TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2020 Limits under Section 23 of Chapter 131 of the Acts of 2010
DATE: January 13, 2020
Pursuant to Section 23 of Chapter 131 of the Acts of 2010, “regular compensation for any person who becomes a member of a retirement system after January 1, 2011 shall not include salary, wages or other compensation in whatever form in any calendar year in excess of 64 per cent (64%) of the annual limitation that may be imposed under federal law on the amount of compensation that may be taken into account when calculating benefits under plans described in 26 U.S.C. 401(a) including, but not limited to, the applicable limits for any calendar year under 26 U.S.C. 401(a)(17).”
For 2020, the general compensation limit found in U.S.C. 401(a)(17) is $285,000, as outlined in PERAC Memorandum #5/2020. Thus the 2020 limit on regular compensation under G.L. 32 for persons who became members after January 1, 2011 is $182,400.
Please contact John Boorack if you have any questions.