When calculating retirement benefits, Georgia law and IRS code place certain limitations on salary earned and salary increases received.
Salary Earned Limitations
Effective January 1, 2013, the limitation on the annual benefit under a defined benefit plan is $205,000.00. This limitation is based on a calendar/tax year and not the TRS plan year.
Effective July 1, 2013, for TRS members whose current date of membership is on or after July 1, 1996, the maximum earnable compensation for which TRS contributions can be reported or which will be used to calculate a retirement benefit is $255,000.00. This limitation is based on TRS’ plan year (July 1, 2013 - June 30, 2014) and not a calendar year.
The IRS limits are based on plan year, not a calendar year. The TRS plan year begins July 1st and ends June 30th. The plan year for the Board of Regents ORP begins January 1st of each year.
Salary Increase Limitations
In its annual meeting held May 15, 2013, the Board of Trustees adopted the following maximum salary increases for FY 2014 that can be used by the Teachers Retirement System of Georgia (TRS) to compute a member's highest two-year average salary:
|Employees of Board of Regents||2.50%||(0.00% + 2.50%)|
|All Others||4.34%||(1.84% + 2.50%)|
These percentages are in accordance with Georgia law [O.C.G.A. § 47-3-120(d)] and apply only to TRS members whose current date of membership is on or after July 1, 1984.
The Board of Trustees also adopted the employee and employer contribution rates for FY 2015. Effective July 1, 2014, the contribution rates will be:
If you or your employees have any questions, please contact our office.