379.3 Internal Revenue Code 415 and cost-of-living adjustments.

(a) The defined benefit payable to a member of the Retirement System shall not exceed the applicable limits under Internal Revenue Code section 415(b), as periodically adjusted by the Secretary of the Treasury pursuant to Internal Revenue Code section 415(d). The limitation year is the [calendar] fiscal year. This limit shall apply to a member who has had a severance from employment or, if earlier, an annuity starting date. Benefits that are subject to Internal Revenue Code section 415(b) shall comply with the foregoing limit in each year during which payments are made. The foregoing limit shall be adjusted pursuant to the requirements of Code sections 415(b)(2)(C) and (D) relating to the commencement of benefits at a date prior to age 62 or after age 65, subject to other applicable rules under Internal Revenue Code section 415. No adjustment shall be required to a benefit subject to an automatic benefit increase feature described in Treasury Regulation section 1.415(b)-1(c)(5). To the extent that Internal Revenue Code section 415 and the Treasury Regulations thereunder require that an interest rate under Internal Revenue Code section 417(e) apply, the applicable lookback month shall be the calendar month preceding the current month and the applicable stability period is one calendar month.

This is a consensus rulemaking proposed for the sole purpose conforming the language of the regulation to the language of Section 620(5) of the Retirement and Social Security Law. This amendment relates to the definition of a limitation year and it has been determined that no person is likely to object to the adoption of the rule as written.