HomeMy WebLinkAbout05.b. Receive information regarding 2022 Internal Revenue Code (IRC) Limits that apply for Pension Contributions and Pension BenefitsPage 1 of 2
Item 5.b.
F--1-448�411C-S0
February 1, 2022
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE INFORMATION REGARDING 2022 INTERNAL REVENUE CODE
(IRC) LIMITS THATAPPLY FOR PENSION CONTRIBUTIONS AND
PENSION BENEFITS
This memo is to provide an update to the Administration Committee and the Board of Directors related to
the Internal Revenue Code (I RC) limits that apply for pension contributions and pension benefits. As
limits change year to year, below is an update with the new limits for 2022, with the 2021 limits included for
reference.
The limits vary for employees depending upon when they became members of Contra Costa County
Employees' Retirement Association (CCCERA) and are as follows:
Date of CCCERA
IRC Limits for 2021
IRC Limits for 2022
Membership
Not subject to the I RC limits for
Not subject to the I RC limits for
Prior to 12/31 /95
neither their contributions nor
neither their contributions nor
their pension benefits
their pension benefits
On or after 1 /1 /96
Subject to the I RC 401(a) limit
Subject to the I RC 401(a) limit
but before 12/31 /12
which, as indexed for 2021, is
which, as indexed for 2022, is
$290,000
$305,000
Subject to the Public
Subject to the PEPRA limits
On or after 1 /1 /13
Employees' Pension Reform
which, as indexed for 2022,
Act (PEP RA) limits which, as
is $161,969
indexed for 2021, is $153,671
Contributions during employment will cease once the limit has been met, and the final pension benefit after
retirement cannot exceed the limits exclusive of any cost of living adjustments. For example, if a legacy
employee (date of CCCERA membership on or after January 1, 1996 but before December 31, 2012)
earns a salary of $315,000, contributions will not be made on any amount over $305,000 in calendar year
2022, and his or her pension cannot exceed $305,000, irrelevant of the years of service, retirement factor,
or age. Although the limits are different for PEPRA employees, the same concept applies.
Staff will be available at the Administration Committee meeting to answer any questions.
February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 34 of 41
Page 2 of 2
Strategic Plan Tie -In
GOAL TWO: Environmental Stewardship
Strategy 1—Achieve 100% compliance in all regulations
February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 35 of 41