8343 - Reduction of annuities on account of social security old-age insurance benefits.

     § 8343.  Reduction of annuities on account of social security                old-age insurance benefits.        (a)  General rule.--A joint coverage member who is eligible     to receive an annuity under section 8307(a) or (b) (relating to     eligibility for annuities) shall be entitled to receive the     annuity provided for in section 8342 (relating to maximum single     life annuity) and section 8348 (relating to supplemental     annuities) which shall be reduced at the time at which the     member would be entitled to receive full social security old-age     insurance benefits whether or not he has applied for such     benefits. The reduction shall be an amount equal to 40% of the     primary insurance amount paid or payable to him and subject to     the following provisions:            (1)  The eligibility of such member for the old-age        insurance benefit and the amount of such benefit upon which        the reduction in his annuity shall be based shall be        determined by the board in accordance with the provisions of        the Federal Social Security Act, 42 U.S.C.A. § 301 et seq.,        in effect on the effective date of retirement, except that in        determining such eligibility and such amount only wages or        compensation for services covered by the system shall be        included.            (2)  The reduction shall not be more than one-half of the        standard single life annuity multiplied by the ratio of the        sum of the three years of highest taxable wages to an amount        equal to three times the final average salary and by the        ratio of the years of credited service after December 31,        1955 to total years of credited service.            (3)  Whenever the amount of the reduction from the        annuity shall have been once determined, it shall remain        fixed for the duration of the annuity except that any        decrease in the old-age insurance benefit under the Federal        Social Security Act, 42 U.S.C.A. § 301 et seq., shall result        in a corresponding decrease in the amount of the reduction        from the annuity.        (b)  Exception.--The reduction provided for in subsection (a)     shall not apply to disability annuities.