Compensation Limitation for Benefit Calculation
December 2002—Issue No. 12

Dear Delegate:

For your information, we are providing a copy of the most recent Administrative Bulletin sent in December to all Chief School Administrators, College and University Presidents and School Principals.

The Internal Revenue Code limits the amount of compensation that can be used in computing benefits for System members with a date of membership on or after July 1, 1996. The limit for the 2002-2003 school year is $200,000.

To help avoid unnecessary adjustments later, we ask you to notify us as early as possible (during the above school year) of any STRS member who meets both of the following criteria:

• Date of membership on or after July 1, 1996

AND

• Contract salary and/or salary earned expected to exceed $200,000 for the 2002-2003 school year.

Please call Ms. Geraldine O’Neil at (800) 356-3128, ext. 2857 with your notification or for any questions you have about this bulletin.

You are reminded that these members should also be reported to STRS in the normal manner as part of your semi-annual reports.

The IRS will adjust future limits according to increases in the cost-of-living index. We will automatically notify you of these changes.

A copy of this bulletin is being mailed to your designated contact.