1.    From and after July 1, 1973, each judge of the supreme or district court serving on that date and each former judge of the supreme or district court, not receiving judicial     retirement salary, may elect to withdraw the judge’s previous contributions made pursuant to this chapter, and thereafter not participate in a judicial retirement program provided for by law. This option ceases to be available and may not be exercised after June 30, 1975. If a judge selects this option, the judge is entitled to receive the combined total of the following sums:

a.    The entire amount of the judge’s previous contributions made pursuant to this chapter, to be calculated to the date of election under this section; plus b.    An amount calculated by applying the vesting schedule set forth in section 54-52-11 to an amount equal to sixty percent of the judge’s individual contributions as calculated in subsection 1, plus earnings thereon as calculated in subsection 3; plus c.    An amount calculated by applying the figure .05625 to the periodic annual or partial annual balances in the individual judge’s account during the judge’s years of service prior to selecting the option provided by this section. The figure applied pursuant to this subdivision must be compounded annually.

2.    The total amounts received pursuant to this section may not be considered taxable income for the purposes of chapter 57-38. Selection of the option provided by this section must be made in writing to the director of the office of management and budget.