Administrative Bulletin No. 2001-10

Subject:  Compensation Limitation for Benefit Calculation

To:  Chief School Administrators                        Date:  December 2001
       College and University Presidents

The Internal Revenue Code limits the amount of compensation that can be used to compute benefits for those joining STRS on or after July 1, 1996. For the 2001-2002 school year the limit of $170,000 remains unchanged from the 2000-2001 school year.

To help avoid unnecessary adjustments, please notify the System as soon as possible during this school year of any STRS member who meets both of the following criteria:

• Has a date of membership in STRS on or after July 1, 1996

                                                       AND

• Has a contract salary and/or salary earned expected to exceed $170,000 for the 2001-2002 school year

Please call Ms. Geraldine O’Neil at (800) 356-3128, ext. 2857 with your notification, or if you have any questions about this bulletin.

You are reminded that these members should also be reported to STRS on your semi-annual reports.

The IRS will adjust future limits based on increases in the cost-of-living index. We will notify you annually of these changes.

A copy of this bulletin is being mailed to your STRS designated contact.

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