§ 24-51-603 — Benefit formula for service retirement

(1) (a) Except as
otherwise provided in subsection (2) of this section, effective July 1, 1997, the option
1 benefit or option A benefit, whichever is applicable, for service retirement for
members shall be calculated by multiplying the highest average salary by two and
one-half percent times each year and fraction of a year of service credit. The
following formula shall be used for this calculation:

Highest Average Salary x (.025 x Years and Fraction of a Year).

(b) (Deleted by amendment, L. 92, p. 1134, � 4, effective July 1, 1992.)

(2) (a) (Deleted by amendment, L. 97, p. 773, � 11, effective July 1, 1997.)

(b) Except as otherwise provided in paragraph (c) of this subsection (2), on
and after July 1, 1999, members of the judicial division who were members of that
division on or before July 1, 1973, shall be eligible to receive an option 1 benefit upon
retiring, which shall be calculated by multiplying the highest average salary by four
percent times each year and fraction of a year for the first ten years of service
credit, and by one and two-thirds percent times each year and fraction of a year in
excess of ten years up to sixteen years of service credit, and by one and one-half
percent times each year and fraction of a year in excess of sixteen years up to
twenty years of service credit, and by two and one-half percent times each year and
fraction of a year in excess of twenty years of service credit. The following formula
shall be used for this calculation:

Highest Average Salary x [(.04 x Years and Fraction of a Year through 10 Years) +
(.0166 x Years and Fraction of a Year over 10 and up to 16 Years) + (.015 x Years and
Fraction of a Year over 16 and up to 20 Years) + (.025 x Years and a Fraction of a
Year over 20 Years)].

(c) For any member of the judicial division who retires on or after July 1, 1999,
and who is eligible to receive a benefit under this subsection (2), the association
shall calculate the member's option 1 benefit under either subsection (1) of this
section or this subsection (2), whichever results in the greater benefit.

(d) On July 1, 1999, for any member of the judicial division whose benefit
became effective prior to July 1, 1999, and who is eligible to receive a benefit under
this subsection (2), the association shall calculate the member's option 1 base
benefit prospectively for benefit payments payable on or after July 1, 1999, under
either subsection (1) of this section or this subsection (2), whichever results in the
greater benefit. The association shall provide benefits to all such benefit recipients
based upon such recalculated base benefits effective July 1, 1999.

(3) (a) Regardless of total years of service credit, the option 1 benefit or
option A benefit, whichever is applicable, calculated pursuant to the provisions of
this part 6 shall not exceed an amount equal to one hundred percent of the highest
average salary, nor shall the option 1 benefit or option A benefit, whichever is
applicable, exceed the maximum permitted under federal income tax law.

(b) (Deleted by amendment, L. 97, p. 773, � 11, effective July 1, 1997.)

(c) Except as provided in subsection (2) of this section, on July 1, 1997, for
benefit recipients whose benefits became effective prior to July 1, 1997, the
association shall recalculate each recipient's option 1 base benefit as set forth in
subsection (1) of this section, prospectively for benefit payments payable on or
after July 1, 1997. The association shall provide benefits to all such benefit
recipients based upon such recalculated base benefits effective July 1, 1997.

Legislative History

Source: L. 87: Entire article R&RE, p. 1060, � 1, effective July 1; (1) and (2) amended, p. 1098, � 6, effective July 1. L. 88: (1) amended and (2) and (3) R&RE, p. 969, 970, �� 2, 3, effective July 1. L. 89: (1) amended, p. 1070, � 3, effective July 1. L. 92: (1) and (3) amended, p. 1134, � 4, effective July 1. L. 95: (3) amended, p. 265, � 9, effective July 1. L. 97: Entire section amended, p. 773, � 11, effective July 1. L. 99: (2)(b), (2)(c), and (2)(d) amended, p. 341, � 5, effective July 1. L. 2010: IP(1)(a) and (3)(a) amended, (SB 10-001), ch. 2, p. 15, � 13, effective January 1, 2011.