We are providing informational items for the 2025 calendar year related to the CIRS Plans:
2025 IRS Compensation Limits
- The IRS sets annual limits on the salary that can be used by qualified pension plans such as the CIRS Pension Plan. These limits are applied on a plan year basis (July 1 – June 30). The CIRS Pension Plan already takes these limits into account for all required purposes (benefit amounts, employer contributions, etc.). However, you as the employer, must be aware of these limits as they apply to the employee contributions for Tier II Members under the CIRS Pension Plan. The July 1, 2024 to June 30, 2025 compensation limit is $345,000 which means that the maximum Tier II employee pension contribution is $10,350 for the 2024-2025 Plan Year. These amounts will increase to $350,000 and $10,500 for the 2025-2026 Plan Year.
2025 IRS Pre-Tax Contribution Limits
- The IRS sets annual limits on the amount of pre-tax contributions employees can make to a 401(k) plan. These limits are applicable on a calendar year basis (January 1 – December 31). The 2025 limit for regular 401(k) pre-tax deferrals is $23,500.
- NEW Effective 1/1/2025, the law has changed in how catchup limits are structured. Instead of one flat dollar amount applicable to everyone over age 50, the law now allows for those ages 60-63 to contribute a higher amount.
- The 2025 catchup limits are:
- Ages 50-59 by 12/31/2025 – $7,500
- Ages 60-63 by 12/31/2025 – $11,250
- Ages 64+ by 12/31/2025 – $7,500
2025 Employee Contribution Catch-up Form
- Employee contribution elections (pre and post-tax) to the CIRS 401(k) Savings Plan must be made by Members through Voya. However, if Members wish to elect catch-up contributions, they must complete the attached Catch-up Form and submit to you (the employer). Catch-up contributions are additional pre-tax contributions that Members who will be age 50 or older by the last day of the calendar year can make in addition to the IRS regular pre-tax contributions.
If you have any questions regarding the CIRS Plans, please feel free to call CIRS at 212-674-0101 and ask to speak to a Member Services Representative.