PERAC Memo #3 - 2023: 202 3 Limits under Section 23 of Chapter 131 of the Acts of 2010

PERAC MEMO # 3 / 2023 M E M O R A N D U M TO: All Retirement Boards FROM: John W. Parsons, Esq., Executive Director RE: 202 3 Limits under Section 23 of Chapter 131 of the Acts of 2010 DATE: January 10, 202 3 Pursuant to Section 23 of Chapter 131 of the Acts of 2010, “regular compensation for any person who becomes a member of a retirement system after January 1, 2011 shall not include salary, wages or other compensation in whatever form in any calendar year in excess of 64 per cent (64%) of the annual limitation that may be imposed under federal law on the amount of compensation that may be taken into account when calculating benefits under plans described in 26 U.S.C. 401(a) including, but not limited to, the applicable limits for any calendar year under 26 U.S.C. 401(a)(17).” For 20 23, the general compensation limit found in U.S.C. 401(a)(17) is $330,000, as outlined in PERAC Memorandum #2/20 23. Thus the 2023 limit on regular compensation under G.L. 32 for persons who became members after January 1, 2011 is $211, 200.
Please contact John Boorack if you have any questions. JWP /jfb p:\actuaria\general\reg comp limit 2023.docx PERAC Auditor SUZANNE M. BUMP | KATHLEEN M. FALLON | KATE FITZPATRICK | JAMES J. GUIDO | RICHARD MACKINNON, JR. | JENNIFER F. SULLIVAN, ESQ. JOHN W. PARSONS, ESQ., Executive Director FIVE MIDDLESEX AVENUE, SUITE 304 | SOMERVILLE, MA 02145 PH 617 666 4446 | FAX 617 628 4002 | TTY 617 591 8917 | WWW.MASS.GOV/PERAC COMMONWEALTH OF MASSACHUSETTS | PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION PHILIP Y. BROWN, ESQ., Chair