1. (a) Notwithstanding any other provisions of this chapter, the benefit provided with respect to any member for any plan year shall not exceed an annual benefit computed in accordance with the limitations prescribed by this section. Specifically, the maximum annual benefit payable in any plan year to a member may not exceed the lesser of:

   1. (1) the applicable dollar amount established in Internal Revenue Code §415(b)(1)(A), as adjusted pursuant to Internal Revenue Code §415(d); or
   2. (2) 100% of the member's annual compensation averaged over the three consecutive plan years (or the actual number of plan years for a member whose total service credit is for less than three consecutive plan years) during which the member had the greatest aggregate annual compensation from the employer. However, this subsection (2) shall not apply to plan years beginning after December 31, 1994.
2. (b) Benefits provided to a member under this plan and under any other defined benefit plan or plans maintained by the employer shall be aggregated for purposes of determining whether the limitations in subsection (a) of this section are met. If the aggregate benefits otherwise payable to any member from this plan and any other defined benefit plan or plans maintained by the employer would otherwise exceed the limitations of subsection (a) of this section, reductions in benefits are required to be made to the other plan to the extent necessary to enable each plan or plans to satisfy those limitations.

Source Note:The provisions of this §29.51 adopted to be effective April 20, 1988, 13 TexReg 1672; amended to be effective September 1, 1992, 17 TexReg 5121; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective March 12, 2003, 28 TexReg 2105.