Important Changes Affecting You As STRS Delegates
Issue No. 4, January 1999
Compensation Limitation for Benefit Calculation

For your information, we are providing you a copy of our most recent Administrative Bulletin which was sent in January to all chief school administrators, college and university presidents and school district contacts.

The Internal Revenue Code limits the amount of compensation which can be used in computing benefits for those who become members of TRS on or after July 1, 1996. For the 2000-2001 school year, this limit is $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 TRS 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 2000-2001 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 TRS 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.