Wage Caps for Tier 2
Each year the Reportable Wage Cap will be updated and shown in the table below.
For the Year |
Regular |
SLEP |
Voluntary Additional |
2011 |
$106,800.00 |
$106,800.00 |
$106,800.00 |
2012 |
$108,882.60 |
$108,882.60 |
$108,882.60 |
2013 |
$109,971.43 |
$109,971.43 |
$109,971.43 |
2014 |
$110,631.26 |
$110,631.26 |
$110,631.26 |
2015 |
$111,571.63 |
$111,571.63 |
$111,571.63 |
2016 |
$111,571.63 |
$111,571.63 |
$111,571.63 |
2017 |
$112,408.42 |
$112,408.42 |
$112,408.42 |
2018 |
$113,644.91 |
$113,644.91 |
$113,644.91 |
2019 |
$114,951.83 |
$114,951.83 |
$114,951.83 |
2020 |
$115,928.92 |
$115,928.92 |
$115,928.92 |
2021 |
$116,740.42 |
$116,740.42 |
$116,740.42 |
2022 |
$119,892.41 |
$119,892.41 |
$119,892.41 |
2023 |
$123,489.18 |
$123,489.18 |
$123,489.18 |
2024 |
$125,773.73 |
$125,773.78 |
$125,773.73 |
Under Tier 2, a member’s wages are capped at $125,773.73 (in 2024). The member does not pay any contributions on wages above the cap. The wage cap is also applied when IMRF calculates member’s benefits.
The wage cap could automatically increase each year by the lesser of 3% or one-half of the increase in the Consumer Price Index (urban) (CPI-U) for the preceding 12 months as of September. If the CPI-U decreases or is zero, no increase is paid.
Under SLEP Tier 2, overtime wages are not reported.
Wage limits under 401(a) (17)
IMRF earnings do not include any compensation in excess of $345,000 (in 2024). However, this limit does not apply to members who began participation before 1996.