Montana Code 19-20-902. Allowance for disability retirement
19-20-902. Allowance for disability retirement. (1) Upon retirement for disability, a member must receive a disability retirement allowance equal to the greater of:
Terms Used In Montana Code 19-20-902
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Earned compensation: means , except as limited by subsections (12)(b) and (12)(c) or by 19-20-715, remuneration paid for the service of a member out of funds controlled by an employer before any pretax deductions allowed under the Internal Revenue Code are deducted. 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
- Termination pay: means any form of bona fide vacation leave, sick leave, severance pay, amounts provided under a window or early retirement incentive plan, or other payments contingent on the employee terminating employment. See Montana Code 19-20-101
(a)one-sixtieth of the member’s average final compensation multiplied by the sum of the number of years of creditable service, including service transferred under 19-20-409; or
(b)one-fourth of the member’s average final compensation.
(2)The earned compensation in the year of termination that is included in the calculation of average final compensation of a member who is awarded a disability retirement allowance prior to the completion of a full year is the compensation, pay, or salary that the member would have received under the member’s contract had the member completed the full year. Any termination pay received by the member is limited to the amount actually paid and is not the amount that the member would have earned had the member completed the full year.