Federal and State laws place annual limits on the compensation that can be used to determine pension-eligible compensation for SCERS members. The limits are different for Legacy and PEPRA members. This notice is to inform you of the annual compensation limits for 2026:

• Legacy members: In accordance with Government Code section 31671 of the County Employees’ Retirement Law (CERL), the 2026 Annual Compensation Limit as set forth by the IRS under section 401(a)(17) is $350,000.
• PEPRA members: In accordance with Government Code section 7522.10 of the County Employees’ Retirement Law (CERL), the 2026 Annual PEPRA Compensation Limit as set forth by the California Actuarial Advisory Panel is:
  • $159,733 for employees enrolled in Social Security
  • $191,679 for employees not enrolled in Social Security

It is expected that SCERS’ Participating Employers monitor employee compensation in accordance with the limits specified above and limit the pensionable compensation accordingly.