19-2-1005. Compensation limit. (1) A retirement system or plan subject to this chapter may not take into account compensation of a member in excess of the amount permitted in section 401(a)(17) of the Internal Revenue Code, 26 U.S.C. 401(a)(17), as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Internal Revenue Code, 26 U.S.C. 401(a)(17)(B).
(2) (a) Except as provided in subsection (2)(b), for a member hired on or after July 1, 2013, a retirement system or plan subject to this chapter may not include the following amounts of excess earnings in the calculation of a member's highest average compensation or final average compensation:
(i) for the first year included in the calculation, any compensation that is greater than 110% of the compensation paid to the member in the previous year; and
(ii) for each subsequent year included in the calculation, any compensation that is greater than 110% of the compensation included in the calculation for the previous year.
(b) In determining a member's retirement benefit, total excess earnings, if any, must be divided by the member's total months of service credit and added to each month's compensation included in the member's highest average compensation or final average compensation as limited under subsection (2)(a).
History: En. Sec. 39, Ch. 265, L. 1993; amd. Sec. 26, Ch. 471, L. 1999; amd. Sec. 10, Ch. 490, L. 2001; amd. Sec. 8, Ch. 284, L. 2009; amd. Sec. 2, Ch. 386, L. 2013.
Structure Montana Code Annotated
Title 19. Public Retirement Systems
Chapter 2. Public Employees' Retirement General Provisions
19-2-1001. Maximum contribution and benefit limitations
19-2-1002. Termination of plan
19-2-1003. Transfer of dormant, nonvested member-accumulated contributions
19-2-1004. Exemption from taxes and legal process
19-2-1007. Required distributions
19-2-1008. Budget Act superseded
19-2-1010. Retaining qualified plan status -- content of plan document -- board rulemaking authority
19-2-1011. Limitations on eligible rollover distributions
19-2-1013. Compliance with federal restrictions on interest rate crediting
19-2-1014. Compliance with federal laws regarding service in uniformed services
19-2-1015. Probate and nonprobate transfer statutes superseded