The amount of each monthly allowance paid as specified in NRS 1A.580 to 1A.660, inclusive, must not exceed the deceased member of the Judicial Retirement Plan’s average compensation and must be reduced by the amount of any other benefit received from any source:

1.  If that benefit was provided or purchased by the expenditure of money by this State if the deceased member was a justice of the Supreme Court, judge of the Court of Appeals or district judge, by the county if the deceased member was a justice of the peace or by the city if the deceased member was a municipal judge, except for lump-sum payments under a group insurance program; and

2.  To the extent that the total of the allowance and the other benefit would otherwise exceed the deceased member’s average compensation.