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HomeGovernment CodeDiv. 4Pt. 3Ch. 3Art. 8§ 31671 Retirement Benefit Compensation Limits

§ 31671 Retirement Benefit Compensation Limits

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 31671 Retirement Benefit Compensation Limits

Key Takeaways

  • •There's a limit on how much of your salary can be used to calculate your retirement benefits if you joined the system after July 1, 1996.
  • •This limit is the same as the one set by the federal government for retirement plans, and it can change over time.
  • •If your salary is higher than the limit, only the amount up to the limit is used to calculate your retirement benefits.
  • •The limit can be different for different years, depending on when you earned the money.

Example

If you started working for the government in 1997 and your salary is $300,000 a year, only a part of that salary (the limit set by the government) will be used to calculate your retirement money.

The law says that even if you earn a lot, only a certain amount of your salary can be counted when figuring out your retirement benefits. This is to follow federal rules and keep things fair.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 31671 Retirement Benefit Compensation Limits

(a) The amount of compensation that is taken into account in computing benefits payable to any person who first becomes a member of the retirement system on or after July 1, 1996, or January 1, 1996, for systems operating on a calendar basis, shall not exceed the limitations in Section 401(a)(17) of Title 26 of the United States Code upon public retirement systems, as that section may be amended from time to time and as that limit may be adjusted by the Commissioner of Internal Revenue for increases in cost of living. The determination of compensation for each 12-month period shall be subject to the annual compensation limit in effect for the calendar year in which the 12-month period begins. In a determination of average annual compensation over more than one 12-month period, the amount of compensation taken into account for each 12-month period shall be subject to the applicable annual compensation limit. (b) The compensation limitations specified in Section 7522.10 shall also apply to a member who is subject to the provisions of the California Public Employees’ Pension Reform Act of 2013 for all or any portion of his or her membership in the county retirement system. (Amended by Stats. 2014, Ch. 740, Sec. 10. (AB 2473) Effective January 1, 2015.)

Last verified: January 22, 2026

Key Terms

retirementcompensationcommissionbenefitsterminationemployeeportsalary

Related Statutes

  • § 31680.16 Retired County Board Service
  • § 31461.3 Reciprocal Retirement Compensation
  • § 31479 Public Service Definition
  • § 31515.5 Public Salary Benefit Disclosure
  • § 31554 Court Employee Pension Membership

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 31671.
View Official Source