Administrative Bulletin No. 2000-12

Subject:  Compensation Limitation for Benefit Calculation

To:  Chief School Administrators                       Date:  December 2000
       College and University Presidents
       School Contacts

The Internal Revenue Code limits the amount of compensation which can be used in computing benefits for those who become members of STRS on or after July 1, 1996. For the 2001-2002 school year, this limit is unchanged at $170,000.

To help avoid unnecessary adjustments later, we ask you to notify us as early as possible during the above school year of any STRS member who meets both of the following criteria:

•  Date of membership on or after July 1, 1996 

                                           And

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

Please call Ms. Geraldine O'Neil at 1-800-356-3128, ext. 2857 with your notification or any questions you may have about this bulletin.

You are reminded that these members should also be reported to STRS in the normal manner as part of your semi-annual reports.

The IRS will adjust future limits according to increases in the cost-of-living index. We will automatically notify you of these changes.

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

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