86.256. Annual benefit not to exceed certain amount--annual additions not to exceed certain amount--combined plan limitation not to be exceeded--incorporation by reference of Internal Revenue Code.
Annual benefit not to exceed certain amount--annual additions notto exceed certain amount--combined plan limitation not to beexceeded--incorporation by reference of Internal Revenue Code.
86.256. 1. In no event shall a member's annual benefit paid underthe plan established pursuant to sections 86.200 to 86.366 exceed theamount specified in Section 415(b)(1)(A) of the Internal Revenue Code, asadjusted for any applicable increases in the cost of living, as in effecton the last day of the plan year, including any increases after themember's termination of employment.
2. Effective for limitation years beginning after December 31, 2001,in no event shall the annual additions to the plan established pursuant tosections 86.200 to 86.366, on behalf of the member, including the member'sown mandatory contributions, exceed the lesser of:
(1) One hundred percent of the member's compensation, as defined forpurposes of Section 415(c)(3) of the Internal Revenue Code, for thelimitation year; or
(2) Forty thousand dollars, as adjusted for increases in the cost ofliving under Section 415(d) of the Internal Revenue Code.
3. Effective for limitation years beginning prior to January 1, 2000,in no event shall the combined plan limitation of Section 415(e) of theInternal Revenue Code be exceeded; provided that, if necessary to avoidexceeding such limitation, the member's annual benefit under the planestablished pursuant to sections 86.200 to 86.366 shall be reduced to theextent necessary to satisfy such limitations.
4. For purposes of this section, Section 415 of the Internal RevenueCode, including the special rules under Section 415(b) applicable togovernmental plans and qualified participants employed by a police or firedepartment, is incorporated in this section by reference.
(L. 1995 H.B. 260, et al. § 4, A.L. 1997 H.B. 331, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290, A.L. 2002 H.B. 1455)Effective 7-11-02