Memorandum

Memorandum #03: 2019 Limits under Chapter 46 of the Acts of 2002

Date: 01/08/2019
Referenced Sources: PERAC Website

PERAC Memo #03, 2019

Table of Contents

All Retirement Board Members

M E M O R A N D U M

TO:                  All Retirement Boards

FROM:           John W. Parsons, Esq., Executive Director

RE:                  2019 Limits under Chapter 46 of the Acts of 2002 

DATE:            January 7, 2019

Prior PERAC Memos (# 27/2002, # 45/2002, and #17/2003) briefly outlined Chapter 46 of the Acts of 2002.  This law brought the Massachusetts Retirement Law into compliance with Federal Limitations on the compensation used to calculate retirement allowances and the dollar amounts of retirement allowances.  This provision generally affects only the highest paid employees and will not apply to most retirement system members.

The regulations regarding Section 401(a)(17) (compensation limit) and Section 415 (benefit limit) of the Internal Revenue Code are quite complex and can vary under individual circumstances.  The general compensation limit for 2019 is $280,000.  The general benefit limit for 2019 is $225,000 per year for a member retiring at age 65 although this limit is generally reduced for retirement prior to age 62. These limitations are indexed each year.

Please contact John Boorack if you have any questions.

Commission Members

Philip Y Brown, Esq., Chairman
Auditor 
Suzanne M. Bump
Kathleen M. Fallon
Kate Fitzpatrick
James M. Machado
Robert B. McCarthy
Jennifer F. Sullivan

Downloads for #03: 2019 Limits under Chapter 46 of the Acts of 2002

Referenced Sources:
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