PERAC Memo #5 - 2024: 2024 Limits under Section 23 of Chapter 131 of the Acts of 2010
2024 Limits under Section 23 of Chapter 131 of the Acts of 2010
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This memo establishes the 2024 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011, under Section 23 of Chapter 131 of the Acts of 2010. Because the federal IRC § 401(a)(17) limit for 2024 is $345,000, the cap on regular compensation for these newer members is 64% of that figure, or $220,800. Boards must use $220,800 as the maximum pensionable compensation for any post-2010 member when calculating contributions and retirement allowances this year.
Full Text
Memorandum Memorandum PERAC Memo #05: 2024 Limits under Section 23 of Chapter 131 of the Acts of 2010 Date: 01/09/2024 Referenced Sources: PERAC Website PERAC Memo #05, 2024
To All Retirement Boards: TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2024 Limits under Section 23 of Chapter 131 of the Acts of 2010
DATE: January 9, 2024
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 2024, the general compensation limit found in U.S.C. 401(a)(17) is $345,000, as outlined in PERAC Memorandum #4/2024. Thus the 2024 limit on regular compensation under G.L. 32 for persons who became members after January 1, 2011 is $220,800.
Please contact John Boorack if you have any questions.