(a) The minimum retirement benefit payable under Section 45-37A-51.220 shall be four hundred dollars ($400) per month. The maximum normal retirement benefit payable under Section 45-37A-51.220 shall be 75 percent of final average salary, exclusive of sick leave bonus. Notwithstanding the foregoing and to the extent applicable to governmental plans as defined in § 414(d), Internal Revenue Code, in no event may the normal retirement benefit exceed the annual dollar limits imposed by § 415(b), Internal Revenue Code, excluding contributions under § 414(h)(2), Internal Revenue Code. Further, no post severance compensation shall be included for any benefit hereunder. Post severance compensation means amounts paid by the later of: (1) Two and one-half months after an employee's severance from employment with the employer, or (2) the end of the limitation year that includes the date of severance from employment with the employer; and those amounts would have been included in the definition of compensation if they were paid prior to the employee's severance from employment. However the payment shall be for (1) unused accrued bona fide sick, vacation, or other leave, but only if the employee would have been able to use the leave if the employee had continued in employment; or (2) received by an employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the employee at the same time if the employee had continued in employment with the employer and only to the extent that the payment is includible in the employee's gross income. Notwithstanding the foregoing, in all events no benefit payments shall exceed limits imposed on governmental plans by applicable law.
(b) Notwithstanding anything to the contrary contained in subsection (a), all participants who first become participants on or after July 1, 2017, shall be entitled to the minimum retirement benefit payable under Section 45-37A-51.220 in the amount of four hundred dollars ($400) per month. The maximum normal retirement benefit payable under Section 45-37A-51.220 shall be 67.5 percent of final average salary, exclusive of sick leave bonus. Notwithstanding the foregoing and to the extent applicable to governmental plans as defined in § 414(d), Internal Revenue Code, in no event shall the normal retirement benefit exceed the annual dollar limits imposed by § 415(b), Internal Revenue Code, excluding contributions under § 414(h)(2), Internal Revenue Code. No post severance compensation shall be included for any benefit under this section. Post severance compensation means amounts paid by the later of: (1) Two and one-half months after an employee's severance from employment with the employer, or (2) the end of the limitation year that includes the date of severance from employment with the employer; and those amounts would have been included in the definition of compensation if they were paid prior to the employee's severance from employment. However, the payment shall be for: (1) Unused accrued bona fide sick, vacation, or other leave, but only if the employee would have been able to use the leave if the employee had continued in employment; or (2) received by an employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the employee at the same time if the employee had continued in employment with the employer and only to the extent that the payment is includible in the employee's gross income. Notwithstanding the foregoing, in all events no benefit payments shall exceed limits imposed on governmental plans by applicable law.
Last modified: May 3, 2021