Some highly paid members may have their annual creditable compensation limited in accordance with Section 401(a)(17) of the Internal Revenue Code. These limits affect individuals who joined TRS for the first time on or after September 1, 1996. The annual limit is subject to indexing each plan year, based on federal regulations. Amounts excluded from creditable compensation under this law are not subject to member contributions and will not be used in calculating benefits.
The cap is based on the TRS plan year of September through August and not the member's contract/work agreement year. Once the member's reported salary beginning with the September posting reaches the salary cap for that year, do not report eligible salary in excess of the salary cap until the following September which is the beginning of the next plan year. Reporting Employers must continue to report Total Gross Compensation and days and hours worked each month for these employees after they have reached the salary cap.
Historical IRS Salary Cap Fiscal Year 2007-Present
| Fiscal Year | Salary Cap Amount |
|---|---|
| FY25 | 345,000 |
| FY24 | 330,000 |
| FY23 | 305,000 |
| FY22 | 290,000 |
| FY21 | 285,000 |
| FY20 | 280,000 |
| FY19 | 275,000 |
| FY18 | 270,000 |
| FY17 | 265,000 |
| FY16 | 265,000 |
| FY15 | 260,000 |
| FY14 | 255,000 |
| FY13 | 250,000 |
| FY12 | 245,000 |
| FY11 | 245,000 |
| FY10 | 245,000 |
| FY09 | 230,000 |
| FY08 | 225,000 |
| FY07 | 220,000 |