[§88-84.5]  Federal limitson annual compensation for ordinary death benefit.  [Section retroactiveto July 1, 1996.  L 2005, c 58, §33.]  (a)  Commencing July 1, 1996,compensation used to determine the benefit payable undersection 88-84(a)(1) shall be subject to the annual limit set forth insection 401(a)(17) of the Internal Revenue Code of 1986, as amended;provided that there shall be paid to the beneficiary of any member:

(1)  Who dies while in service or on authorized leavewithout pay after June 30, 2004, and before July 1, 2006; and

(2)  Whose compensation earned during the yearimmediately preceding the member's death exceeds the annual limit set forth insection 401(a)(17) of the Internal Revenue Code of 1986, as amended,

a nontax-qualified benefit equal to the differencebetween the benefit that would have been payable under section 88-84(a)(1)without applying the limit under section 401(a)(17) of the InternalRevenue Code of 1986, as amended, to compensation earned prior to July 1,2005, and the benefit that is payable under section 88-84(a)(1) applyingthe limit under section 401(a)(17) of the Internal Revenue Code of 1986,as amended, to the compensation earned during the year immediately precedingthe member's death.

(b)  The nontax-qualified benefit provided bysubsection (a) shall be administered by the board of trustees; providedthat:

(1)  State members shall be paid by the respectivedepartment or agency that employs the member pursuant to assessments made andreceived by the system; and

(2)  County members shall be paid by the respectivecounties pursuant to assessments made and received by the system.

(c)  Section 88-91 shall apply to thenontax-qualified benefit. [L 2005, c 58, §1]