A quick google search shows that there are, by the most wild estimate, 600 people on the planet, at most, who are over the age of 110. More like 150 to 300.
Raising the age to 130 just means there's an extra 20 years of potential pension fraud or incorrect payments.
Why would someone who is not a programmer set up such an arbitrary limit?
Probably because it's not arbitrary; most people don't live to be 110, and everybody knows you're supposed to perform sanity checking. According to a quick google search (the height of scholarly rigor,) there's maybe 300 people in the world who are older than 110 years. The most wild estimate is 600.
On the other hand, fraud is a real thing, not to mention straight up human error; somebody dies, they don't get taken out of the system, so the money keeps going out.
I doubt very highly it's a 'two digit year' storage issue.
More likely, it's perfectly correct and reasonable boundary checking; an age should never be less than 0, and never more than, what? How many people are actually older than 110? She is an extreme outlier, and proof positive that the boundary checking is working.
You'll note that Slashdot dropped the, "News for Nerds, Stuff that Matters," moniker a long time ago.
"If it's not loud, it doesn't work!" -- Blank Reg, from "Max Headroom"