Could my contributions
be affected by when my membership
service began and by the amount
of my regular compensation?
If your membership began on or after January 1, 1979 and if your annual rate of regular compensation is $30,000 or more, the treasurer of the governmental unit for which you work will withhold two percent of that portion of your rate of regular compensation which is in excess of $30,000. This two percent withholding is in addition to the 7, 8, 9, or 12 percent that is already being deducted from your total regular compensation. (Teachers participating in the "Retirement Plus" program are not subject to this additional withholding.) This additional withholding will be made each pay period from that amount of your compensation that is in excess of an annual rate of $30,000 even before your total compensation for the year exceeds $30,000.
For example, if you became a member in 1981 and your rate of regular compensation is $40,000:
Deductions in the amount of 7% of $40,000 equaling $2,800 will be taken; and
• Deductions in the amount of 2% of $10,000 ($40,000 minus $30,000) equaling $200 will also be taken.
• Your annual contributions will be $3,000, which will be taken from your rate of regular compensation on a weekly, biweekly, or monthly basis (as determined by your pay period).