Rule Rule 105-020-0015
Employee Contributions and Limitations to Retirement

(1) The Department of Administrative Services shall deduct an employees PERS contribution directly from the employees wages, unless in conflict with rule, law or collective bargaining agreement.
(2) The contribution shall not be considered salary for income tax purposes.
(3) The employees reported salary on the W-2 form shall be reduced by the amount of the employees PERS contribution.
(4) A PERS participating members employee contribution ceases when the participating members salary reaches the salary limitation set forth in IRC 401(a)(17). Once a PERS participating members salary reaches the salary limitation, the employees compensation plan converts to a non-participating members compensation plan for the remainder of the tax year. This only applies to participating members who first became a member of PERS after January 1, 1996.
[Publications: Publications referenced are available from the agency.]
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May. 26, 2020