Replace the effective date in SECTION 2 with "[EFFECTIVE
UPON PASSAGE]".
Replace the effective date in SECTION 10 with "[EFFECTIVE
UPON PASSAGE]".
increased by one and two-thirds percent (1 2/3%) of the participant's
average annual salary for each completed year of creditable service
more than ten (10) years. However, the annual retirement allowance
computed under this subsection may not exceed seventy-five
percent (75%) of the participant's average annual salary.
(c) The annual retirement allowance shall cease with the last
monthly payment prior to the death of the participant.
date.
(3) The participant's mandatory retirement age.
(4) The date the participant retires because of a disability as
provided by subsection (k).
(h) A participant who retires on the participant's DROP
retirement date or on the date the participant retires because of a
disability as provided by subsection (k) may elect to receive an
annual retirement allowance:
(1) computed under section 10 of this chapter as if the
participant had never entered the DROP; or
(2) consisting of:
(A) the DROP frozen benefit; plus
(B) an additional amount, paid as the participant elects
under subsection (i), determined by multiplying:
(i) the DROP frozen benefit; by
(ii) the number of months the participant was in the
DROP.
(i) The participant shall elect, at the participant's retirement, to
receive the additional amount calculated under subsection (h)(2)(B)
in one (1) of the following ways:
(1) A lump sum paid on:
(A) the participant's DROP retirement date; or
(B) the date the participant retires because of a disability
as provided by subsection (k).
(2) Three (3) equal annual payments:
(A) commencing on:
(i) the participant's DROP retirement date; or
(ii) the date the participant retires because of a disability
as provided by subsection (k); and
(B) thereafter paid on:
(i) the anniversary of the participant's DROP retirement
date; or
(ii) the date the participant retires because of a disability
as provided by subsection (k).
(j) A cost of living increase determined under section 21(c) of
this chapter does not apply to the additional amount calculated
under subsection (h)(2)(B) at the participant's DROP retirement
date or the date the participant retires because of a disability as
provided by subsection (k). No cost of living increase is applied to
a DROP frozen benefit while the participant is in the DROP. After
the participant's DROP retirement date or the date the participant
retires because of a disability as provided by subsection (k), cost of
living increases determined under section 21(c) of this chapter
apply to the participant's annual retirement allowance computed
under this section.
(k) If a participant becomes disabled, in the line of duty or other
than in the line of duty while in the DROP, the participant's annual
retirement allowance is computed as follows:
(1) If the participant retires because of a disability less than
twelve (12) months after the date the participant enters the
DROP, the participant's annual retirement allowance is
calculated as if the participant had never entered the DROP.
(2) If the participant retires because of a disability at least
twelve (12) months after the date the participant enters the
DROP, the participant's annual retirement allowance is
calculated under this section, and the participant's retirement
date is the date the member retires because of a disability
rather than the participant's DROP retirement date.
(l) If, before payment of the participant's annual retirement
allowance begins, the participant dies in the line of duty or other
than in the line of duty, death benefits are payable as follows:
(1) The benefit calculated under subsection (h)(2)(B) is paid
in a lump sum to the participant's surviving spouse. If there
is no surviving spouse, the lump sum must be divided equally
among the participant's surviving children. If there are no
surviving children, the lump sum is paid to the participant's
parents. If there are no surviving parents, the lump sum is
paid to the participant's estate.
(2) A benefit is paid on the DROP frozen benefit under the
terms of the retirement plan created by this chapter.
(m) Except as provided under subsections (k) and (l), the annual
retirement allowance for a participant who exits the DROP for any
reason other than retirement on the participant's DROP
retirement date is calculated as if the participant had never entered
the DROP.".
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