Section 579.22 - Application of Pensionable Compensation Cap(a) For the purposes of administering Government Code section 7522.10, CalPERS will cap the pensionable compensation used to determine final compensation as specified in Government Code section 7522.32 in the following manner: (1) For each portion of the final compensation period that is comprised of a full calendar year from January 1 to December 31, the maximum pensionable compensation that may be taken into account for such calendar year will be equal to 100 percent of the applicable pensionable compensation cap for that calendar year. A member's final compensation for such calendar year will be equal to the lesser of the actual pensionable compensation earned by the member during such calendar year or the maximum pensionable compensation for such year.(2) For each portion of the final compensation period that is comprised of less than a full calendar year, the maximum pensionable compensation that may be taken into account for the calendar year in which such final compensation is earned will be equal to the applicable pensionable compensation cap for such calendar year, multiplied by a fraction which is equal to the number of days of the final compensation period falling within that calendar year, divided by the total number of days falling within that calendar year. A member's final compensation for such portion of a calendar year will be equal to the lesser of the actual pensionable compensation earned by the member during such portion of a calendar year or the maximum pensionable compensation for such portion of a year.(b) Member contributions are not required on pensionable compensation paid to members that exceeds the cap articulated in section 7522.10 on a calendar year basis. Notwithstanding anything to the contrary in this Regulation section 579.22, in determining the applicable pensionable compensation cap taken into account with respect to a member for any calendar year or portion of a calendar year that falls within the final compensation period, such cap will not exceed the maximum cap imposed on contributions that were made by, or on behalf of, such member for that calendar year or portion of a calendar year.Cal. Code Regs. Tit. 2, § 579.22
1. New section filed 10-25-2013; operative 10-25-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 43). Note: Authority cited: Sections 7522.02, 20120, 20121, 20122, 20123 and 20124, Government Code. Reference: Sections 7522.04, 7522.10, 7522.32 and 7522.34, Government Code.
1. New section filed 10-25-2013; operative 10-25-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 43).