§88-83.5  Benefit limitations.  (a) 
Notwithstanding any other law to the contrary, the benefits payable to all
employees who first become members on or after January 1, 1990, shall be
subject to the limitations set forth in Section 415 of the Internal Revenue
Code of 1986, as amended, applicable to governmental plans.  The dollar limit
in Section 415(b)(1)(A) of the Internal Revenue Code of 1986, as amended, shall
be adjusted automatically under Section 415(d) of the Internal Revenue Code of
1986, as amended, effective January 1 of each year, as published in the
Internal Revenue Bulletin.  The automatic adjustment shall apply to members,
former employees, retirants, and beneficiaries.



(b)  Notwithstanding any other law to the
contrary, the benefits payable to all employees who first became members before
January 1, 1990, shall be subject to the greater of the following limitations
as provided in section 415(b)(10) of the Internal Revenue Code of 1986, as
amended:



(1)  The limitations set forth in section 415 of the
Internal Revenue Code of 1986, as amended; or



(2)  The benefit of the member without regard to any
benefit increases pursuant to an amendment adopted after October 14, 1987.



(c)  The system shall establish a benefit
restoration plan for the payment of retirement benefits as permitted under
Section 415(m) of the Internal Revenue Code of 1986, as amended, as follows:



(1)  All retirants and beneficiaries of the system
whose pension has been limited by Section 415 of the Internal Revenue Code
shall receive a monthly benefit from the plan established pursuant to this
subsection that is equal to the difference between the retirement benefit
otherwise payable and the retirement benefit payable because of Section 415 of
the Internal Revenue Code of 1986, as amended;



(2)  Participation in the plan shall be determined for
each plan year and shall cease whenever the retirement benefit is not limited
by Section 415 of the Internal Revenue Code of 1986, as amended;



(3)  The plan shall be funded on a plan-year-to-plan-year
basis and shall not be used to pay any benefits payable in future years.  Upon
the recommendation of the system's actuary, the required contribution amount
shall be determined by the board and deposited in a separate fund from an
allocation of employer contribution amounts pursuant to this chapter;



(4)  The board shall administer the plan and may make
modifications to the benefits payable as may be necessary to maintain the
qualified status of the plan under Section 415(m) of the Internal Revenue Code
of 1986, as amended. [L 1990, c 104, §1; am L 2000, c 215, §2; am L 2008, c 41,
§5]