Annual contribution limits
The Internal Revenue Service (IRS) limits the annual earnable compensation and contribution amounts under qualified retirement plans, and TRSL notifies employers of these limits each year.
Because these limitations are on a calendar year basis and salary and contributions are reported on a fiscal year basis, TRSL also notifies (by email) employers of members who are approaching or exceeding the compensation limit (before December).
You will be advised on the necessary steps to take when compensation limits have been exceeded.
The contribution limit for participants who joined the Optional Retirement Plan (ORP) includes both employer and employee contributions transferred to the participant's account.
If a participant exceeds the limit for the calendar year, employers must cease reporting of that participant on the monthly salary/contribution file.
- Employers are responsible for submitting an unfunded liability request for any participant that has exceeded the contributions limit, which will be refunded by TRSL.
- The participant's carrier is responsible for refunding the employee and employer portion of the overpayment.
Refer to Index 4.0 for detailed information on contribution reporting.
