§ 51.1-168. Limits on creditable compensation; maximum benefits; mandatorypayment of allowance.
A. Notwithstanding any other provision of law, creditable compensation usedfor computing any benefit or employee contribution under or to the RetirementSystem shall not exceed $200,000 (as adjusted in $5,000 increments from timeto time by the adjustment factor described in I.R.C. § 415 (d) on the basisof a base period of the calendar quarter beginning July 1, 2001). Indetermining average final compensation for periods beginning on or after July1, 2001, the limit on creditable compensation applied to compensationattributable to periods prior to July 1, 2001, shall be $200,000.Notwithstanding the foregoing, compensation for any employee who became amember of the Retirement System (i) prior to the ninetieth day after theopening date of the 1996 Session of the General Assembly, on whose behalfemployee or employer contributions are made into the Retirement System, andfor whom annual compensation is used for computing any benefit, shall notexceed the limit on compensation as adjusted by the Commissioner of theInternal Revenue Service pursuant to the transition provisions applicable toeligible participants under state and local governmental plans under I.R.C. §401 (a) (17) as amended in 1993 and as contained in § 13212 (d) (3) of theOmnibus Budget Reconciliation Act of 1993 (P. L. 103-66).
B. Notwithstanding any other provision of law, the annual benefit under theRetirement System of a member and any related death or other benefit shall,if necessary, be reduced to the extent required by § 415 (b) of the InternalRevenue Code, as adjusted by the Secretary of the Treasury pursuant to § 415(d) of the Internal Revenue Code. Any adjustment pursuant to § 415 (d) of theInternal Revenue Code shall apply to all members including those who havedied, retired, or otherwise terminated service with a nonforfeitable right toa retirement allowance before the effective date of such adjustment. If anemployee participating in the Retirement System is also a participant inanother defined benefit plan sponsored or maintained by an employerparticipating in the Retirement System and subject to the limitations under §415 of the Internal Revenue Code, such employer shall apply the combinedlimit test required by § 415 (b) of the Internal Revenue Code to all suchplans, to the extent required by § 415 of the Internal Revenue Code. Whenevera reduction in annual benefits is required to meet the annual benefit limitrequired by § 415 (b) of the Internal Revenue Code, the annual benefits undersuch employer's other plan or plans will be reduced before benefits under theRetirement System.
C. Any vendor for a defined benefit plan sponsored or maintained by anemployer that participates in the Retirement System shall (i) request andmaintain the records needed, (ii) perform the testing services required toassure compliance with the limitations described in § 415 (b) of the InternalRevenue Code, including testing required where the employer maintains orsponsors another plan that must be tested together with the RetirementSystem, and (iii) advise the employer of any annual benefit that exceeds theapplicable limitation. If there is no vendor for these services, the employershall (a) request and maintain the records needed, (b) perform the testingservices required to assure compliance with the limitations described in §415 (b) of the Internal Revenue Code, including testing required where theemployer maintains or sponsors another plan that must be tested together withthe Retirement System, and (c) reduce any annual benefit that exceeds theapplicable limitation.
D. On and after January 1, 1989, the retirement allowance of a member who hasterminated employment shall begin no later than the later of (i) April 1 ofthe calendar year following the calendar year that the member attains seventyand one-half years of age or (ii) April 1 of the calendar year following thecalendar year in which the member terminates employment. If the member fails,following reasonable notification, to elect a form of payment by suchrequired beginning date, the retirement allowance shall be paid as a singlelife annuity and the spousal acknowledgement otherwise required by §51.1-165.1 shall not be required.
(1990, c. 832; 1995, c. 307; 1998, c. 389; 2000, c. 502; 2002, c. 435; 2005,c. 728.)
§ 51.1-168. Limits on creditable compensation; maximum benefits; mandatorypayment of allowance.
A. Notwithstanding any other provision of law, creditable compensation usedfor computing any benefit or employee contribution under or to the RetirementSystem shall not exceed $200,000 (as adjusted in $5,000 increments from timeto time by the adjustment factor described in I.R.C. § 415 (d) on the basisof a base period of the calendar quarter beginning July 1, 2001). Indetermining average final compensation for periods beginning on or after July1, 2001, the limit on creditable compensation applied to compensationattributable to periods prior to July 1, 2001, shall be $200,000.Notwithstanding the foregoing, compensation for any employee who became amember of the Retirement System (i) prior to the ninetieth day after theopening date of the 1996 Session of the General Assembly, on whose behalfemployee or employer contributions are made into the Retirement System, andfor whom annual compensation is used for computing any benefit, shall notexceed the limit on compensation as adjusted by the Commissioner of theInternal Revenue Service pursuant to the transition provisions applicable toeligible participants under state and local governmental plans under I.R.C. §401 (a) (17) as amended in 1993 and as contained in § 13212 (d) (3) of theOmnibus Budget Reconciliation Act of 1993 (P. L. 103-66).
B. Notwithstanding any other provision of law, the annual benefit under theRetirement System of a member and any related death or other benefit shall,if necessary, be reduced to the extent required by § 415 (b) of the InternalRevenue Code, as adjusted by the Secretary of the Treasury pursuant to § 415(d) of the Internal Revenue Code. Any adjustment pursuant to § 415 (d) of theInternal Revenue Code shall apply to all members including those who havedied, retired, or otherwise terminated service with a nonforfeitable right toa retirement allowance before the effective date of such adjustment. If anemployee participating in the Retirement System is also a participant inanother defined benefit plan sponsored or maintained by an employerparticipating in the Retirement System and subject to the limitations under §415 of the Internal Revenue Code, such employer shall apply the combinedlimit test required by § 415 (b) of the Internal Revenue Code to all suchplans, to the extent required by § 415 of the Internal Revenue Code. Whenevera reduction in annual benefits is required to meet the annual benefit limitrequired by § 415 (b) of the Internal Revenue Code, the annual benefits undersuch employer's other plan or plans will be reduced before benefits under theRetirement System.
C. Any vendor for a defined benefit plan sponsored or maintained by anemployer that participates in the Retirement System shall (i) request andmaintain the records needed, (ii) perform the testing services required toassure compliance with the limitations described in § 415 (b) of the InternalRevenue Code, including testing required where the employer maintains orsponsors another plan that must be tested together with the RetirementSystem, and (iii) advise the employer of any annual benefit that exceeds theapplicable limitation. If there is no vendor for these services, the employershall (a) request and maintain the records needed, (b) perform the testingservices required to assure compliance with the limitations described in §415 (b) of the Internal Revenue Code, including testing required where theemployer maintains or sponsors another plan that must be tested together withthe Retirement System, and (c) reduce any annual benefit that exceeds theapplicable limitation.
D. On and after January 1, 1989, the retirement allowance of a member who hasterminated employment shall begin no later than the later of (i) April 1 ofthe calendar year following the calendar year that the member attains seventyand one-half years of age or (ii) April 1 of the calendar year following thecalendar year in which the member terminates employment. If the member fails,following reasonable notification, to elect a form of payment by suchrequired beginning date, the retirement allowance shall be paid as a singlelife annuity and the spousal acknowledgement otherwise required by §51.1-165.1 shall not be required.
(1990, c. 832; 1995, c. 307; 1998, c. 389; 2000, c. 502; 2002, c. 435; 2005,c. 728.)
§ 51.1-168. Limits on creditable compensation; maximum benefits; mandatorypayment of allowance.
A. Notwithstanding any other provision of law, creditable compensation usedfor computing any benefit or employee contribution under or to the RetirementSystem shall not exceed $200,000 (as adjusted in $5,000 increments from timeto time by the adjustment factor described in I.R.C. § 415 (d) on the basisof a base period of the calendar quarter beginning July 1, 2001). Indetermining average final compensation for periods beginning on or after July1, 2001, the limit on creditable compensation applied to compensationattributable to periods prior to July 1, 2001, shall be $200,000.Notwithstanding the foregoing, compensation for any employee who became amember of the Retirement System (i) prior to the ninetieth day after theopening date of the 1996 Session of the General Assembly, on whose behalfemployee or employer contributions are made into the Retirement System, andfor whom annual compensation is used for computing any benefit, shall notexceed the limit on compensation as adjusted by the Commissioner of theInternal Revenue Service pursuant to the transition provisions applicable toeligible participants under state and local governmental plans under I.R.C. §401 (a) (17) as amended in 1993 and as contained in § 13212 (d) (3) of theOmnibus Budget Reconciliation Act of 1993 (P. L. 103-66).
B. Notwithstanding any other provision of law, the annual benefit under theRetirement System of a member and any related death or other benefit shall,if necessary, be reduced to the extent required by § 415 (b) of the InternalRevenue Code, as adjusted by the Secretary of the Treasury pursuant to § 415(d) of the Internal Revenue Code. Any adjustment pursuant to § 415 (d) of theInternal Revenue Code shall apply to all members including those who havedied, retired, or otherwise terminated service with a nonforfeitable right toa retirement allowance before the effective date of such adjustment. If anemployee participating in the Retirement System is also a participant inanother defined benefit plan sponsored or maintained by an employerparticipating in the Retirement System and subject to the limitations under §415 of the Internal Revenue Code, such employer shall apply the combinedlimit test required by § 415 (b) of the Internal Revenue Code to all suchplans, to the extent required by § 415 of the Internal Revenue Code. Whenevera reduction in annual benefits is required to meet the annual benefit limitrequired by § 415 (b) of the Internal Revenue Code, the annual benefits undersuch employer's other plan or plans will be reduced before benefits under theRetirement System.
C. Any vendor for a defined benefit plan sponsored or maintained by anemployer that participates in the Retirement System shall (i) request andmaintain the records needed, (ii) perform the testing services required toassure compliance with the limitations described in § 415 (b) of the InternalRevenue Code, including testing required where the employer maintains orsponsors another plan that must be tested together with the RetirementSystem, and (iii) advise the employer of any annual benefit that exceeds theapplicable limitation. If there is no vendor for these services, the employershall (a) request and maintain the records needed, (b) perform the testingservices required to assure compliance with the limitations described in §415 (b) of the Internal Revenue Code, including testing required where theemployer maintains or sponsors another plan that must be tested together withthe Retirement System, and (c) reduce any annual benefit that exceeds theapplicable limitation.
D. On and after January 1, 1989, the retirement allowance of a member who hasterminated employment shall begin no later than the later of (i) April 1 ofthe calendar year following the calendar year that the member attains seventyand one-half years of age or (ii) April 1 of the calendar year following thecalendar year in which the member terminates employment. If the member fails,following reasonable notification, to elect a form of payment by suchrequired beginning date, the retirement allowance shall be paid as a singlelife annuity and the spousal acknowledgement otherwise required by §51.1-165.1 shall not be required.
(1990, c. 832; 1995, c. 307; 1998, c. 389; 2000, c. 502; 2002, c. 435; 2005,c. 728.)
