IRS Limits
Each year the IRS sets forth the total amount of individual
benefits that SamCERA can pay for that calendar year. These
limits, known as IRS Section 415 limits, affect only a small
number of members who were highly paid and had a long service
period. Additionally, a small category of beneficiaries
receiving survivor benefits may be affected by the limits.
SamCERA will notify you if you are affected by the Section 415
limit. The IRS also caps certain member’s compensation
earnable limit.
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For those members who were hired by the County
BEFORE July 1, 1996. For these members,
contributions were made on the full compensation earnable
(salary), and your full salary was or will be used to calculate
your final compensation. This may cause your pension to be
reduced by the Section 415 limit. In this case, SamCERA will
pay you up to the limit, the rest of your pension will be paid
through a Replacement Benefit Plan established by the
County. Members hired by other SamCERA employers do not
participate in the Replacement Benefit Plan.
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For those members hired on or AFTER July 1,
1996. For these members who earned a salary over
the IRS compensation limit, contributions were not or will not
be made on your full salary, so the full amount was not or will
not be used to calculate your pension and most probably will be
under the Section 415 limit. For those that are still over
limit, they will be placed in the Replacement Benefit
Plan. County employees who are not in Plan 7 can contact
the County’s Human Resources Department for more information
regarding this matter. Plan 7 members cannot participate
in the Replacement Benefit Plan.
Other Benefit Limits
No greater than 100% of Final Average
Compensation. In any circumstance, the maximum
monthly benefit any member can receive cannot exceed 100% of
Final Average Compensation. Plan 7 members should
note that their benefits are independently capped due to the
provisions of the PEPRA plan.
