Montana Code 19-20-804. Allowance for service retirement — professional retirement option allowance — creditable service limitation
19-20-804. Allowance for service retirement — professional retirement option allowance — creditable service limitation. (1) Upon termination, a tier one or tier two member who qualifies for benefits pursuant to 19-20-801(1) or (2) must receive a retirement allowance equal to one-sixtieth of the member’s average final compensation, as limited by 19-20-715, multiplied by the sum of the number of years of creditable service.
Terms Used In Montana Code 19-20-804
- Average final compensation: means a member's highest average earned compensation, determined pursuant to 19-20-805, on which all required contributions have been made. See Montana Code 19-20-101
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
- Service: means the performance of duties that would entitle the person to active membership in the retirement system under the provisions of 19-20-302. See Montana Code 19-20-101
- Tier two member: means a person who became a member on or after July 1, 2013, or who, after withdrawing the member's account balance, became a member again after July 1, 2013. See Montana Code 19-20-101
(2)(a) Upon termination, a tier two member who qualifies for benefits pursuant to 19-20-801(3) must receive a professional retirement option allowance equal to 1.85% of the member’s final average compensation, as limited by 19-20-715, multiplied by the sum of the member’s years of creditable service.
(b)For the purpose of calculating the professional retirement option, creditable service does not include:
(i)service credited before the member became a tier two member even if the member redeposits the member’s withdrawn contributions pursuant to 19-20-427; or
(ii)service credit transferred under 19-20-409.