A. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member’s average annual salary and one percent of the remainder of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

B. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member’s average annual salary and one percent of the remainder of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

C. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

D. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of one or more years shall be computed pursuant to Subsection E of this section. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of less than one year shall be computed pursuant to Subsection A of this section if the member’s date of last retirement was on or before June 30, 1967 or pursuant to Subsection B of this section if the member’s date of last retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to Subsection C of this section if the member’s date of last retirement was on or after July 1, 1971 but not later than June 30, 1974.

E. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1974 but not later than June 30, 1987, shall be paid monthly and shall be one-twelfth of a sum equal to:

(1)     one and one-half percent of the member’s average annual salary multiplied by the number of years of service credit for:

(a) prior employment; and

(b) allowed service credit for service performed prior to July 1, 1957, except United States military service credit purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 N.M. Stat. Ann.; plus (2)     two percent of the member’s average annual salary multiplied by the number of years of service credit for:

(a) contributory employment;

(b) allowed service credit for service performed after July 1, 1957; and

(c) United States military service credit for service performed prior to July 1, 1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 N.M. Stat. Ann..

F. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1987 but not later than June 30, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen- hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that this subsection shall not apply to any member who was retired in any of the four quarters ending on June 30, 1987 without having accumulated not less than 1.0 years earned service credit after June 30, 1987.

G. Retirement benefits for a member who retires pursuant to Section 22-11-23 N.M. Stat. Ann. on or after July 1, 1991 shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

(1)     the benefit for a member who retires pursuant to Paragraph (3) of Subsection A of Section 22-11-23 N.M. Stat. Ann. shall be reduced by:

(a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years but after the member attains the age of fifty-five years; and

(b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of fifty-five years;

(2)     the benefit formula provided in this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having accumulated at least one year of earned service credit beginning on or after July 1, 1991; and

(3)     a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

H. Retirement benefits for a member who retires pursuant to Section 22-11-23.1 N.M. Stat. Ann. shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

(1)     the benefit for a member who retires pursuant to Paragraph (3) of Subsection A of Section 22-11-23.1 N.M. Stat. Ann. shall be reduced by:

(a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty-five years but after the member attains the age of sixty years; and

(b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years; and

(2)     a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

I. Retirement benefits for a member who retires pursuant to Section 22-11-23.2 N.M. Stat. Ann. shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

(1)     the benefit for a member retiring pursuant to Paragraph (3) of Subsection A of Section 22-11-23.2 N.M. Stat. Ann. shall be reduced by:

(a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty-five years but after the member attains the age of sixty years; and

(b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years; and

(2)     a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

J. Retirement benefits for a member who retires in accordance with Section 22-11- 23.3 NMSA 1978 shall be paid monthly and:

(1)     in an amount equal to one-twelfth of the sum of the following:

(a) for the first ten years of the member’s service credit, one and thirty-five hundredths percent of the member’s average annual salary multiplied by the member’s years of service credit between one-fourth of a year and ten years;

(b) for that portion of the member’s service credit earned after ten years of service credit and through twenty years of service credit, two and thirty-five hundredths percent of the member’s average annual salary multiplied by the member’s years of service credit between ten and twenty years;

(c) for that portion of the member’s service credit earned after twenty years of service credit and through thirty years of service credit, three and thirty-five hundredths percent of the member’s average annual salary multiplied by the member’s years of service credit between twenty and thirty years; and

(d) for that portion of the member’s service credit earned after thirty years of service credit, two and four-tenths percent of the member’s average annual salary multiplied by the member’s years of service credit over thirty years; or

(2)     if the member retires in accordance with:

(a) Subsection A of Section 22-11-23.3 N.M. Stat. Ann. and is under fifty-eight years of age, in an amount equal to the result determined under Paragraph (1) of this subsection, but reduced to the actuarial equivalent, based on what is at the time of the member’s retirement the most current set of actuarial factors determined by the board, of the benefit the member would receive if the member had retired at fifty-eight years of age;

(b) Subsection C of Section 22-11-23.3 N.M. Stat. Ann. and is sixty years of age or older and under sixty-five, in an amount equal to the result determined under Paragraph (1) of this subsection, but reduced by six-tenths percent for each one-fourth, or portion thereof, year before the member reaches age sixty-five; or

(c) Subsection C of Section 22-11-23.3 N.M. Stat. Ann. and is younger than sixty years of age, in an amount equal to one and eight-tenths percent for each one-fourth, or portion thereof, year before the member reaches sixty years of age.

K. In determining a member’s average annual salary for purposes of this section:

(1)     the data set shall consist of the annual salary of each of the last five years, or any consecutive five years, for which contribution was made by the member, whichever produces a higher result; and

(2)     lump-sum payments made after July 1, 2010 of accrued sick leave or annual leave shall be excluded from the calculation.

L. On and after July 1, 2019, if the member’s average annual salary is greater than sixty thousand dollars ($60,000):

(1)     the salary in a first twelve-month interval that occurs beginning July 1, 2019 or thereafter of the five-year period used to determine the average annual salary shall be adjusted to exclude any increase in salary in excess of thirty percent of the salary in the twelve consecutive months of service credit preceding the five-year period; and

(2)     the salary in each of the four succeeding twelve-month intervals that occur beginning July 1, 2019 or thereafter of the five-year period, as adjusted to exclude any increase in salary in the twelve months preceding each such succeeding twelve-month interval that is in excess of the thirty-percent limitation provided in this subsection, shall be used to determine if the salary in that succeeding twelve-month interval exceeds the thirty-percent limitation and to adjust the salary to exclude any increase in excess of that limitation in determining the average annual salary.

M. On July 1, 2020 and on each July 1 thereafter, the salary threshold for applying the thirty-percent limitation provided for in Subsection L of this section shall be adjusted by applying an adjustment factor equal to the change in the consumer price index between the next preceding calendar year and the preceding calendar year if there is an increase in the consumer price index between the next preceding calendar year and the preceding calendar year.

N. Notwithstanding any provision of the Educational Retirement Act, retirement benefits shall be distributed in accordance with Section 401(a)(9) of the federal Internal Revenue Code of 1986, as amended, and the regulations thereunder, including the minimum incidental death benefit restrictions of Section 401(a)(9)(G) of the Internal Revenue Code of 1986, as amended.