It looks to me that it incentivizes working outside of SF, or NY. $110k for a developer with 5 years experience in Cleveland is just about right, if not on the higher end.
Whaa... I must be doing something wrong, because I'm in Dallas with 14 years of total engineering experience and 8 years of software engineering experience but have yet to break $93k.
You should definitely ask for raise and explore other opportunities etc but bear in mind that stories and discussions about salaries on HN is mostly about high end of S/w industry. For lot of us salaries are quite a bit lower than what is discussed here. Also cracking interviews and showing above ordinary skills to get job at top end firms is beyond capabilities of most of generic software developers.
See, that has been by problem with trying to figure out my true worth. The StackOverflow calculator seems about right to me, but that is a totally unfounded gut feeling. $110k after five years in Cleveland seems like a high-end outlier, but I don't really know. Obviously $250k total comp at Google is a major outlier (for the industry, not necessarily for Google).