Retirement Monitor, Volume III, January 28, 2004

Federal and State laws limit the amount of compensation subject to contributions to a retirement plan. This dollar figure is adjusted each year.  This month, the Retirement Systems Division announced those limits for calendar year 2004:

-$305,000.00 is the annual limit for an employee hired on and before Jan. 1, 1996

-$205,000.00 is the annual limit for an employee hired on and after Jan. 1, 1996

These limits apply to all members of the Teachers’ and State Employees’ Retirement System, the Local Governmental Employees’ Retirement System and the Consolidated Judicial Retirement System. 

Human resources, payroll and benefits professionals are encouraged to notify the Retirement System’s Member Services Section if they have employees whose earnings will exceed the limits above during calendar year 2004.  Member Services can be contacted on the new phone line dedicated to employers at 919-807-3100. 

Click here to view the memorandum on 2004 Compensation Limits