
<p>Most SDCERA members can easily estimate their pension using the <a href="https://content.sdcera.org/members/calculator/">benefit calculator</a>. For a relative few, however, compensation limits may apply to your pension.</p>



<h2 class="wp-block-heading"><strong>IRC 401(a)(17) Compensation Limits</strong></h2>



<p>Internal Revenue Code (IRC) 401(a)(17) limits the compensation that can be used to calculate your pension if you:</p>



<ul>
<li>First became an SDCERA Member after June 30, 1996, AND</li>



<li>Are in Tier I, A, or B.</li>
</ul>



<p>For 2025, the limit is $350,000; it is adjusted annually.</p>



<h2 class="wp-block-heading"><strong>CalPEPRA Compensation Limits</strong></h2>



<p>The California Public Employees’ Pension Reform Act of 2013 (PEPRA) limits the compensation that can be used to calculate your pension if you are in SDCERA Tier C or D.</p>



<p>The 2025 limits are:</p>



<ul>
<li>$155,081 for General Tier C and D members</li>



<li>$186,096 for Safety Tier C and D members</li>
</ul>



<p>These limits may be adjusted annually based on changes in the Consumer Price Index for All Urban Consumers.</p>



<h2 class="wp-block-heading">How Limits Affect Your Retirement Contributions</h2>



<p>The compensation limits are based on retirement-eligible earnings that are earned during the calendar year. They reset with every new calendar year. Once the compensation limit is reached, members do not pay contributions on earnings over the compensation limit for the remainder of that calendar year.</p>



<h2 class="wp-block-heading"><strong>IRC 415(b) Benefit Limits</strong></h2>



<p>IRC Section 415(b) limits the annual pension you can get from SDCERA. This cap may reduce your pension. However, the San Diego County Board of Supervisors adopted a supplemental plan (known as the excess benefit plan) that will make up the difference in retirement pay for any retiring Tier I, A, or B member who is impacted.</p>



<p>Tier C and Tier D members are not eligible to participate in the excess benefit plan.</p>



<p>The limits vary based on your age at retirement, the date you became an SDCERA Member, your membership classification, and the retirement option you chose. For example, the dollar limit for 2025 is $280,000 at age 62.</p>



<p>If you receive a pension before you reach age 62, the limit will be adjusted downward (this adjustment doesn&#8217;t apply to those who worked for the County Sheriff&#8217;s Department for 15 years or more). The limit is also reduced if you have less than 10 years of membership in SDCERA.</p>



<p>This table shows 2025 limits based on age.</p>



<h2 class="wp-block-heading"><strong>IRC Maximum Pension Benefit Limits</strong></h2>



<table class="wp-block-advgb-table advgb-table-frontend"><thead><tr><th><strong>Age</strong></th><th><strong>2025 Annual Dollar Limits for Most Members</strong></th><th><strong>Age</strong></th><th><strong>2025 Annual Dollar Limits for Most Members</strong></th></tr></thead><tbody><tr><td>41</td><td>$73,702</td><td>52</td><td>$141,598</td></tr><tr><td>42</td><td>$78,003</td><td>53</td><td>$150,866</td></tr><tr><td>43</td><td>$82,591</td><td>54</td><td>$160,882</td></tr><tr><td>44</td><td>$87,488</td><td>55</td><td>$171,726</td></tr><tr><td>45</td><td>$92,722</td><td>56</td><td>$183,486</td></tr><tr><td>46</td><td>$98,319</td><td>57</td><td>$196,262</td></tr><tr><td>47</td><td>$104,312</td><td>58</td><td>$210,169</td></tr><tr><td>48</td><td>$110,737</td><td>59</td><td>$225,335</td></tr><tr><td>49</td><td>$117,631</td><td>60</td><td>$241,910</td></tr><tr><td>50</td><td>$125,039</td><td>61</td><td>$260,066</td></tr><tr><td>51</td><td>$133,010</td><td>62+</td><td>$280,000</td></tr></tbody></table>



<p>To determine if your pension exceeds the limit, SDCERA only includes benefits provided by employer contributions. The limit doesn&#8217;t apply to the portion of your benefit that comes from your after-tax member contributions.</p>



<p>The dollar limit is adjusted periodically based on the Consumer Price Index. If your retirement benefit is affected by the Section 415(b) limit when you retire, SDCERA will notify you.</p>



<h2 class="wp-block-heading"><strong>How the Excess Benefit Plan Works</strong></h2>



<p>For Tier I, Tier A, and Tier B members affected by the Section 415(b) limit,&nbsp; the excess benefit plan will pay the difference between your SDCERA earned benefit and the maximum amount allowed under your limit. With that difference, you&#8217;ll get a total payment equal to your SDCERA earned benefit.</p>



<p>Again, Tier C and D members are not eligible for the excess benefit plan.</p>
