A: If a member’s date of continuous membership begins on or after January 1, 1979 and his/her annual rate of regular compensation is $30,000.00 or more, then an additional 2% will be withheld from that portion of regular compensation in excess of $30,000.00.
Example:
Sally establishes continuous membership in October of 1993. Currently, her regular compensation is $50,000.00. Deductions in the amount of $4,000.00 (8% of the $50,000.00) will be taken. In addition, deductions in the amount of $400.00 will be taken which is 2% of $20,000.00 or the amount of her regular compensation over $30,000.00 ($50,000.00 - $30,000.00 = $20,000.00). Therefore, the total amount of retirement contributions on her regular compensation of $50,000.00 will be $4,400.00.