49-13-402 - Service retirement plans -- Calculation of retirement allowance -- Social Security limitations.
49-13-402. Service retirement plans -- Calculation of retirement allowance -- SocialSecurity limitations.
(1) (a) Except as provided under Section 49-13-701, retirees of this system may choosefrom the six retirement options described in this section.
(b) Options Two, Three, Four, Five, and Six are modifications of the Option Onecalculation.
(2) The Option One benefit is an allowance calculated as follows:
(a) If the retiree is at least 65 years of age or has accrued at least 30 years of servicecredit, the allowance is an amount equal to 2% of the retiree's final average monthly salarymultiplied by the number of years of service credit accrued.
(b) If the retiree is less than 65 years of age, the allowance shall be reduced 3% for eachyear of retirement from age 60 to age 65, plus a full actuarial reduction for each year ofretirement prior to age 60, unless the member has 30 or more years of accrued credit, in whichevent no reduction is made to the allowance.
(c) (i) Years of service include any fractions of years of service to which the retiree maybe entitled.
(ii) At the time of retirement, if a retiree's combined years of actual, not purchased,service credit is within 1/10 of one year of the total years of service credit required for retirement,the retiree shall be considered to have the total years of service credit required for retirement.
(d) An Option One allowance is only payable to the member during the member'slifetime.
(3) The allowance payable under Options Two, Three, Four, Five, and Six is calculatedby reducing an Option One benefit based on actuarial computations to provide the following:
(a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,and, if the retiree receives less in annuity payments than the amount of the retiree's membercontributions, the remaining balance of the retiree's member contributions shall be paid inaccordance with Sections 49-11-609 and 49-11-610.
(b) Option Three is a reduced allowance paid to and throughout the lifetime of theretiree, and, upon the death of the retiree, the same reduced allowance paid to and throughout thelifetime of the retiree's lawful spouse at the time of retirement.
(c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to andthroughout the lifetime of the retiree's lawful spouse at the time of retirement.
(d) Option Five is a modification of Option Three so that if the lawful spouse at the timeof retirement predeceases the retiree, an allowance equivalent to the amount payable at the timeof initial retirement under Option One shall be paid to the retiree for the remainder of the retiree'slife, beginning on the last day of the month following the month in which the lawful spouse dies.
(e) Option Six is a modification of Option Four so that if the lawful spouse at the time ofretirement predeceases the retiree, an allowance equivalent to the amount payable at the time ofinitial retirement under Option One shall be paid to the retiree for the remainder of the retiree'slife, beginning on the last day of the month following the month in which the lawful spouse dies.
(4) (a) (i) The final average salary is limited in the computation of that part of anallowance based on service rendered prior to July 1, 1967, during a period when the retireereceived employer contributions on a portion of compensation from an educational institutiontoward the payment of the premium required on a retirement annuity contract with the Teachers'
Insurance and Annuity Association of America or with any other public or private system,organization, or company to $4,800.
(ii) This limitation is not applicable to retirees who elected to continue in the PublicEmployees' Contributory Retirement System by July 1, 1967.
(b) Periods of employment which are exempt from this system as permitted underSubsection 49-13-203(1)(b) may be purchased by the member for the purpose of retirement onlyif all benefits from the Teachers' Insurance and Annuity Association of America or any otherpublic or private system or organization based on this period of employment are forfeited.
(5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,the retirement is canceled and the death shall be considered as that of a member beforeretirement.
(b) Any payments made to the retiree shall be deducted from the amounts due to thebeneficiary.
(6) If a retiree retires under either Option Five or Six and subsequently divorces, theretiree may elect to convert the benefit to an Option One benefit at the time of divorce, if there isno court order filed in the matter.
Amended by Chapter 130, 2007 General Session