(1) AN ALLOWANCE TO THE EXTENT THAT IT EXCEEDS THE DOLLAR
LIMIT ON AN ANNUAL BENEFIT ESTABLISHED FROM TIME TO TIME UNDER § 415(B)
OF THE INTERNAL REVENUE CODE AND THE REGULATIONS ADOPTED THEREUNDER;
AND

(2) THE CONTRIBUTIONS AND OTHER ADDITIONS TO ANY DEFINED
CONTRIBUTION PLAN MAINTAINED BY THE BOARD OF TRUSTEES TO THE EXTENT
THAT THEY EXCEED THE LIMIT ON ANNUAL ADDITIONS ESTABLISHED FROM TIME
TO TIME UNDER § 415(C) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS
ADOPTED THEREUNDER.

(C) (1) THE DOLLAR LIMIT ON AN ANNUAL BENEFIT IS THE AMOUNT SET
FORTH IN § 415(B) OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY THE
COMMISSIONER OF INTERNAL REVENUE UNDER § 415(D) OF THE INTERNAL REVENUE
CODE AS OF JANUARY 1 OF EACH CALENDAR YEAR.

(2) THE DOLLAR LIMIT FOR A CALENDAR YEAR APPLIES TO A STATE
SYSTEM'S FISCAL YEAR ENDING WITHIN THAT CALENDAR YEAR

(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, THE
AGENCY SHALL PAY A PARTICIPANT WHOSE ALLOWANCE WAS REDUCED UNDER
SUBSECTION (B) OF THIS SECTION ANY POST RETIREMENT ADJUSTMENT IF PAYMENT
OF THE POSTRETIREMENT ADJUSTMENT DOES NOT EXCEED THE DOLLAR LIMIT ON
BENEFITS.

(2) THE POSTRETIREMENT ADJUSTMENT MAY NOT EXCEED A
PARTICIPANT'S BASIC ALLOWANCE AS INCREASED BY ANY POSTRETIREMENT
ADJUSTMENTS ALLOWABLE UNDER THE APPLICABLE STATE SYSTEM.

(E) IF AN INDIVIDUAL PARTICIPATES IN ANY OTHER RETIREMENT OR
PENSION SYSTEM THAT MUST BE AGGREGATED WITH THE STATE SYSTEM
ADMINISTERED BY THE BOARD OF TRUSTEES, THE INDIVIDUAL'S ANNUAL BENEFIT
ACCRUAL OR ANNUAL ADDITION SHALL FIRST BE REDUCED BY THE OTHER
RETIREMENT OR PENSION SYSTEM TO THE EXTENT NECESSARY TO COMPLY WITH
THE REQUIREMENTS OF § 415 OF THE INTERNAL REVENUE CODE AND THE
REGULATIONS ADOPTED THEREUNDER BEFORE ANY REDUCTION IS MADE BY THE
BOARD OF TRUSTEES.

(E) (F) (1) THIS SUBSECTION DOES NOT APPLY TO AN INDIVIDUAL WHO IS
A MEMBER OF A STATE SYSTEM ON OR BEFORE JUNE 30, 1999.

(2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE AGENCY
MAY NOT ALLOW A MEMBER TO PURCHASE PRIOR SERVICE CREDIT OTHER THAN IN
ACCORDANCE WITH THE LIMITATIONS AND CONDITIONS SET FORTH IN § 415(N) OF
THE INTERNAL REVENUE CODE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1999.