Montana Code 19-3-904. Amount of service retirement benefit
19-3-904. Amount of service retirement benefit. (1) The monthly amount of service retirement benefit payable following retirement to a member hired before July 1, 2011, with:
Terms Used In Montana Code 19-3-904
- Compensation: means remuneration paid out of funds controlled by an employer in payment for the member's services or for time during which the member is excused from work because of a holiday or because the member has taken compensatory leave, sick leave, annual leave, banked holiday time, or a leave of absence before any pretax deductions allowed by state or federal law are made. See Montana Code 19-3-108
- Highest average compensation: means :
(i)for a member hired prior to July 1, 2011, the highest average monthly compensation during any 36 consecutive months of membership service;
(ii)for a member hired on or after July 1, 2011, the highest average monthly compensation during any 60 consecutive months of membership service; or
(iii)in the event a member has not served the minimum specified period of service, the total compensation earned divided by the months of membership service. See Montana Code 19-3-108
(a)less than 25 years of membership service is the greater of one fifty-sixth of the member’s highest average compensation multiplied by the number of years of the member’s total service credit or the benefit calculated under subsection (3); or
(b)25 or more years of membership service is the greater of 2% of the member’s highest average compensation multiplied by the number of years of the member’s total service credit or the benefit calculated under subsection (3).
(2)The monthly amount of service retirement benefit payable following retirement to a member hired on or after July 1, 2011, with:
(a)less than 10 years of membership service is the greater of 1.5% of the member’s highest average compensation multiplied by the number of years of the member’s total service credit or the benefit calculated under subsection (3);
(b)10 or more years but less than 30 years of membership service is the greater of one fifty-sixth of the member’s highest average compensation multiplied by the number of years of the member’s total service credit or the benefit calculated under subsection (3); or
(c)30 or more years of membership service is the greater of 2% of the member’s highest average compensation multiplied by the number of years of the member’s total service credit or the benefit calculated under subsection (3).
(3)A member is entitled to receive the greater of:
(a)the benefit provided pursuant to subsection (1) or (2); or
(b)a monthly benefit that is the actuarial equivalent of the sum of:
(i)double the member’s regular contributions and regular interest; and
(ii)any amounts paid by the member to purchase service credit and membership service as provided by law.