A. “Salary” means the sum of the following calculated on an annual calendar-year basis:
(1) All taxable payments from the township, excluding overtime.
(2) Any pre-tax contributions to a deferred compensation plan under Section 457 or 414(h) of the Internal Revenue Code.
(3) Any payments made pursuant to the Act of June 28, 1935, P.L. 477, as amended, 53 P.S. § 637 and 638, commonly known as the “Heart and Lung Act.”
B. In no event shall a member’s salary used to compute his final average salary exceed the following annual compensation limits:
(1) Two hundred thousand dollars for 1989.
(2) For 1990, 1991, 1992 and 1993, the limit set by the Internal Revenue Service in accordance with Section 401(a)(17) of the Internal Revenue Code.
(3) One hundred fifty thousand dollars for 1994 and 1995.
(4) One hundred sixty thousand dollars for the 1997 Plan Year.
(5) For all plan years after 1997, the limit set by Section 401(a)(17) of the Internal Revenue Code, as adjusted for cost-of-living increases.