38-746. Compensation limitation;
adjustments
A. Except as provided in subsection E, beginning on July 1, 2002, the annual
compensation of each employee taken into account under ASRS for any fiscal year or for
any other specified twelve consecutive month period shall not exceed two hundred thousand
dollars. In determining benefit accruals under ASRS for fiscal years beginning after
December 31, 2001 and except as provided for in subsection E, the annual compensation
limit under this subsection for fiscal years beginning before January 1, 2002 is two
hundred thousand dollars.
B. If compensation under ASRS is determined on a period of time that contains fewer
than twelve calendar months, the compensation limit for that period of time is equal to
the dollar limit for the calendar year during which the period of time begins, multiplied
by the fraction in which the numerator is the number of full months in that period of
time and the denominator is twelve.
C. For fiscal years beginning before July 1, 1997, the annual compensation limit
prescribed in this section also applies to the combined compensation of a member who is a
member of the group of ten highly compensated employees, as defined in section 414(q) of
the internal revenue code, and who is paid the highest compensation during the fiscal
year and any family member of the member who is either the member's spouse or the
member's lineal descendant and who has not attained the age of nineteen before the close
of the fiscal year. If the maximum compensation is adjusted pursuant to subsection D, the
adjusted limitation shall be prorated among the affected members' compensation determined
pursuant to this section before application of the adjusted limitation to the other
provisions of this article.
D. The board shall adjust the maximum compensation under subsection A at the same
time and in the same manner as adjusted by the United States secretary of the treasury
under section 401(a)(17)(B) of the internal revenue code. The adjustment under this
subsection for a calendar year applies to annual compensation for the fiscal year of ASRS
that begins with or within the calendar year.
E. The dollar limitation prescribed in subsection A does not apply to an eligible
member to the extent that the annual compensation of an eligible member taken into
account by ASRS for any fiscal year or for any other specified twelve consecutive month
period would be reduced below two hundred thirty-five thousand eight hundred forty
dollars. This was the amount of compensation taken into account by ASRS as of July 1,
1993. The board shall adjust this amount as of the effective date of the increase
prescribed by the United States secretary of the treasury. For the purposes of this
subsection, "eligible member" means a person who first became a member of ASRS before
July 1, 1996.
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