CalPERS Increases Compensation Limit for “Classic Members;” Sets Compensation Limits for “New Members”
CalPERS announced an increase in the compensation limit for “classic members” for the 2013 calendar year.
“Classic members” refers to individuals already members of a public retirement system, who do not fall under the definition of “new members.” “New members” include individuals who became members of any public retirement system, include CalPERS, on or after January 1, 2013, who were never a member of any other public retirement system prior to that date. (Government Code section 7522.04(f).)
CalPERS increased the compensation limit from $5,000 to $250,000. Therefore, retirement contributions will only be made for compensation earned up to $250,000 in calendar year 2013.
CalPERS set the compensation limits for “new members” at $113,700 for Social Security participants and $136,440 for Non-Social Security participants. Therefore, for “new members,” retirement contributions will only be made for compensation earned up to these amounts in calendar year 2013.
By Jake White | July 1, 2013