2010 Pennsylvania Code
Title 24 - EDUCATION
Chapter 83 - Membership, Contributions and Benefits
8325.1 - Annual compensation limit under IRC § 401(a)(17).

     § 8325.1.  Annual compensation limit under IRC § 401(a)(17).
        (a)  General rule.--In addition to other applicable
     limitations set forth in this part, and notwithstanding any
     provision of this part to the contrary, the annual compensation
     of each noneligible member taken into account for benefit
     purposes under this subchapter shall not exceed the limitation
     under IRC § 401(a)(17). On and after July 1, 1996, any reference
     in this part to the limitation under IRC § 401(a)(17) shall mean
     the Omnibus Budget Reconciliation Act of 1993 (OBRA '93) (Public
     Law 103-66, 107 Stat. 312) annual compensation limit set forth
     in this subsection. The OBRA '93 annual compensation limit is
     $150,000, as adjusted by the commissioner for increases in the
     cost of living in accordance with IRC § 401(a)(17)(B). The cost-
     of-living adjustment in effect for a calendar year applies to
     any determination period which is a period, not exceeding 12
     months, over which compensation is determined, beginning in such
     calendar year. If a determination period consists of fewer than
     12 months, the OBRA '93 compensation limit will be multiplied by
     a fraction, the numerator of which is the number of months in
     the determination period and the denominator of which is 12.
        (b)  Grandfather exception.--The limitation under IRC §
     401(a)(17) shall not apply to an individual who first became a
     member of the system prior to July 1, 1996, to the extent that
     the application of such limitation to such member would reduce
     the amount of compensation that is allowed to be taken into
     account for benefit purposes under this subchapter below the
     amount that was allowed to be taken into account under this
     subchapter as in effect on July 1, 1993.
     (Dec. 20, 1995, P.L.689, No.77, eff. July 1, 1996)

        1995 Amendment.  Act 77 added section 8325.1.
        Cross References.  Section 8325.1 is referred to in section
     8102 of this title.