Notwithstanding any other provision of this Article, the annual retirement allowance
to which any member may be entitled shall not exceed the limits on benefits set forth
in Section 415(b) of the Internal Revenue Code and any regulations issued by the U.S.
Department of the Treasury thereunder, and in calculating such limits a member's compensation
shall include any differential wage payments for military service as defined under
Section 3401(h)(2) of the Internal Revenue Code and paid on or after January 1, 2009.
Notwithstanding any provision of the Internal Revenue Code to the contrary, the limitations
imposed by this Section apply only to retirement allowances granted under this Article,
and not to any retirement allowance provided to any employee under any other Article
of this Chapter. Such limits shall be applied annually for the 12-month period commencing
each July 1 and ending the following June 30. A benefit payable other than in the
form of an annuity shall not exceed the amount which, when converted to an actuarial
equivalent annual benefit, does not exceed the limits on benefits set forth in Section
415(b) of the Internal Revenue Code. Effective June 30, 2000, the mortality tables
prescribed by the Uruguay Round Agreement Acts (GATT), as set forth in Internal Revenue
Service Revenue Ruling 2001-62 (superseding and modifying Revenue Ruling 95-29), or
as further updated or modified by the Internal Revenue Service, shall be used in determining
the actuarial equivalent amount of such benefit. (27-90-3, § 6; 21-96-3; 8-03-3; 01-11-3;
4-16-3.)