The Tier 2 member wage cap for 2021 is $116,740.42. Employers must report member earnings over $116,740.42, 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 2021 wage cap, the employer must:
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Stop withholding member contributions from the member's paycheck.
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Keep reporting the member's wages to IMRF.
It is important for employers to keep 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.
2020 reminder
Remember, the 2020 Tier 2 wage cap is $115,928.92. 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.
More information
Please contact IMRF at 1-800-728-7971 if you have any questions about the Tier 2 wage cap or need to discuss any complex circumstances.