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Salary Increases Over 6 Percent

Public Act 94-0004, signed into law in June 2005, requires employer contributions for salary increases in excess of 6 percent. When a member retires, the employer is required to pay TRS contributions equal to the actuarial value of a pension benefit that results from any salary increase over 6 percent that is used in a retiring member’s final average salary calculation.

Read Chapter 8, Excess Costs to learn more about employer costs for salary increases in excess of the 6 percent thresholds.

To estimate an excess salary, use the Excess Salary Increase Calculator.