Section 5018 - Actuarial Assumptions

Section 5018.6 - Compliance with IRC §415

 In connection with the System's compliance with section 415 of the Internal Revenue Code which limits contributions to or benefits paid by the System, 

    (a) the interest rate and mortality tables used in determining the application of the defined benefit limitations of IRC §415(b) shall be the interest rate and mortality tables prescribed by the Secretary of the Treasury of the United States pursuant to IRC §415(b)(2)(E)(v)p;

    (b) the combined plan fraction rule of former subsection (e) of IRC §415 governing the implementation of the defined benefit and defined contribution limitations of said section in cases where a member of the System concurrently participates in a defined contribution plan maintained by an employer participating in the System shall not apply;

    (c) the limitation of section 415(b)(1)(B) providing that a member's benefit may not exceed 100% of the member's average compensation for the member's high 3 years shall not apply;

    (d) the limitations in IRC §§415(b)(2)(C) and 415(b)(5) on the amount of benefits which may be paid by the System with respect to any member shall not apply to any benefit payable to the member as a result of the member becoming disabled by reason of sickness or personal injuries or payable to a beneficiary, survivor or estate of the member by reason of the death of a member;

    (e) the rules of IRC §415(n) relating to the application of the IRC §415 limitations on benefits paid by and contributions to the System in 147b circumstances where a member has purchased or seeks to purchase service credit as permitted under law, which rules, among other things, permit the System to apply the defined benefit limitation of IRC §415(b) to the member's entire benefit without regard to member contributions to purchase service credit, shall apply.

(Statutory authority: Education Law §§501 [subd. 9(b), (c)], 508 [subd. 4], 517)