The Tier 2 member wage cap for 2020 is $115,928.92. Employers must report member earnings over $115,928.92, but should not withhold any IMRF contributions for wages above this cap.
The wage cap period is based on the calendar year, regardless of your
employer's fiscal year. If a member reaches the 2020 wage cap, the employer must:
- Keep reporting the member's wages to IMRF.
- Stop withholding member contributions from the member's paycheck.
- Stop withholding member voluntary additional contributions.
Employers must continue reporting a member's wages to IMRF, even in excess of the Tier 2 wage cap, so that the member continues to earn service credit.
As a reminder, the 2019 Tier 2 wage cap is $114,951.83. Please be mindful of this wage cap during November and December payroll to ensure your employer follows the required steps for withholding member contributions and reporting wages above this amount.
Please contact IMRF at
1-800-728-7971
(employer-only number) if you have any questions about the Tier 2 wage cap or need to discuss any complex circumstances.
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