Defined Benefit plan limits
The MSRS pension retirement plans are qualified plans under IRS Code 401(a). As such, IRS limits under Section 401(a) and 415 apply. The 415 limits were designed to place caps on how much salary and contributions can be deferred in a retirement plan. The contribution limits are governed specifically by IRS 401(a)(17).
The maximum salaries for which contributions can be submitted to MSRS are as follows:
Hired July 1, 1993 or after: Contributions are accepted on salary up to $290,000 for calendar year 2021. Salary limit may be adjusted annually by the IRS.
Hired before July 1, 1993: Contributions are accepted on salary up to $430,000 for 2021. This amount is adjusted by inflation.
If in any calendar year, a member of a MSRS pension retirement plan can make contributions up to the allowable limit described in MS Section 356.611.
When an employee reaches the maximum salary subject to retirement contributions, MSRS staff notifies the agency to discontinue the deductions for contributions until the first pay period of the next calendar year. If the employee has contributed on more than the allowable salary in any year, excess contributions are refunded to the employee and employer as deductions taken in error.
Defined Contribution plan limits
The maximum amount that may be contributed to a defined contribution plan is governed by 415(c)(1)(a). The maximum amount is $58,000 for 2021.