This text of Indiana § 5-10.2-4-5 (Early retirement percent reduction) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
The retirement benefit (rb) payable on and
after July 1, 1975, for a member who retired on and after January 1,
1956, before age sixty-five (65) is the sum of the pension (P), as
specified in section 4 of this chapter and computed on the basis of the
total creditable service and the average of the annual compensation at
retirement, multiplied by a percent (p), plus the annuity (A), if any,
purchasable by all or part of the amount credited to the member in the
annuity savings account. This sum is obtained by the following STEPS:
STEP ONE: From seven hundred eighty (780) months, which
equals sixty-five (65) years, subtract the age of the member at the
member's retirement date expressed in whole months (retirement
age in months) and obtain a remainder (X).
STEP TWO:
(A)If the remainder (X) i
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The retirement benefit (rb) payable on and
after July 1, 1975, for a member who retired on and after January 1,
1956, before age sixty-five (65) is the sum of the pension (P), as
specified in section 4 of this chapter and computed on the basis of the
total creditable service and the average of the annual compensation at
retirement, multiplied by a percent (p), plus the annuity (A), if any,
purchasable by all or part of the amount credited to the member in the
annuity savings account. This sum is obtained by the following STEPS:
STEP ONE: From seven hundred eighty (780) months, which
equals sixty-five (65) years, subtract the age of the member at the
member's retirement date expressed in whole months (retirement
age in months) and obtain a remainder (X).
STEP TWO:
(A) If the remainder (X) is less than or equal to sixty (60), then
multiply the remainder (X) times one-tenth percent (0.1%) and
obtain a product (Y).
(B) If the remainder (X) is greater than sixty (60), then multiply
five-twelfths percent (5/12%) times the difference obtained by
subtracting sixty (60) from the remainder (X) and obtain a
product. Add to this six percent (6%) and obtain a sum (Y).
STEP THREE: From one hundred percent (100%) subtract the
appropriate (Y) and obtain the percent (p).
STEP FOUR: The early retirement benefit equals (p) times (P)
plus the annuity (A).
Expressed mathematically:
If "<" means "less than or equal to" and if ">" means "greater
than"; then:
(I) 780 - (retire age in months) = X;
(II) if X < 60, (X) times (0.1%) = Y; or
if X > 60, (5/12%) times (X-60) + 6% = Y
(III) 100% - Y = p
(IV) rb = pP + A
As added by Acts 1977, P.L.53, SEC.2. Amended by
P.L.35-1985, SEC.15; P.L.40-2017, SEC.11.