§88-84.5 - Federal limits on annual compensation for ordinary death benefit.

[§88-84.5] Federal limits
on annual compensation for ordinary death benefit. [Section retroactive
to July 1, 1996. L 2005, c 58, §33.] (a) Commencing July 1, 1996,
compensation used to determine the benefit payable under
section 88-84(a)(1) shall be subject to the annual limit set forth in
section 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 leave
without pay after June 30, 2004, and before July 1, 2006; and

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

a nontax-qualified benefit equal to the difference
between the benefit that would have been payable under section 88-84(a)(1)
without applying the limit under section 401(a)(17) of the Internal
Revenue 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) applying
the limit under section 401(a)(17) of the Internal Revenue Code of 1986,
as amended, to the compensation earned during the year immediately preceding
the member's death.

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

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

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