Benefit formula for reduced service retirement.

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(1) (a) For a member who is a state trooper, who is eligible to retire on and after July 1, 1998, but on or before January 1, 2011, and who retires upon reaching fifty years of age or older but before reaching sixty years of age, a reduced service retirement benefit shall be the option 1 benefit for service retirement, as calculated according to the formula set forth in section 24-51-603, reduced by three percent for each year and a proportional percentage for each fraction of a year from the effective date of reduced service retirement to the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1).

(b) For a member who is not a state trooper, who is eligible to retire on and after July 1, 1998, but on or before January 1, 2011, and who retires upon reaching fifty-five years of age or older but before reaching sixty years of age, a reduced service retirement benefit shall be the option 1 benefit for service retirement, as calculated according to the formula set forth in section 24-51-603, reduced by:

  1. Three percent for each year and a proportional percentage for each fraction of a yearfrom the effective date of reduced service retirement to the date the member would have reached sixty years of age, or the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1), if earlier than sixty years of age; and

  2. Four percent for each year and a proportional percentage for each fraction of a yearfrom the date the member reaches sixty years of age to the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1), if on such date the member would have been older than sixty years of age.

(c) For a member who is not a state trooper, who is eligible to retire on and after July 1, 1998, but on or before January 1, 2011, and who retires upon reaching sixty years of age or older but before reaching sixty-five years of age, a reduced service retirement benefit shall be the option 1 benefit for service retirement, as calculated according to the formula set forth in section 24-51-603, reduced by four percent for each year and a proportional percentage for each fraction of a year from the effective date of reduced service retirement to the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1).

  1. Repealed.

  2. Notwithstanding the provisions of subsection (1) of this section, on and after July 1,1993, for a member who is not a state trooper, who is eligible for a reduced service retirement benefit as of January 1, 2011, and who retires upon reaching fifty years of age or older but before reaching fifty-five years of age, a reduced service retirement benefit shall be the option 1 benefit for service retirement, as calculated according to the formula set forth in section 24-51-603, reduced by:

  1. Six percent for each year and a proportional percentage for each fraction of a yearfrom the effective date of reduced service retirement to the date the member would have reached fifty-five years of age, or the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1) if earlier than fifty-five years of age; and

  2. Three percent for each year and a proportional percentage for each fraction of a yearfrom the date the member reaches fifty-five years of age to the date the member would have become eligible for a service retirement pursuant to the provisions of section 24-51-602 (1), if on such date the member would have been older than fifty-five years of age.

(4) For a member, DPS member, or inactive member who is not eligible for a retirement benefit as of January 1, 2011, the following provisions shall apply:

  1. For a member or inactive member who retires prior to reaching eligibility for a fullservice retirement benefit pursuant to section 24-51-602, a reduced service retirement benefit shall be the option 1 benefit for service retirement, as calculated according to the formula set forth in section 24-51-603, reduced by an actuarially determined percentage to ensure that, as of the effective date of retirement, the benefit is the actuarial equivalent of the service retirement benefit.

  2. For a DPS member who retires prior to reaching eligibility for retirement pursuant tosection 24-51-1713 or 24-51-602, whichever is applicable, a retirement with an actuarial reduction shall be the option A benefit as calculated according to the formula set forth in section 24-51-1715 (1)(a)(I) or 24-51-603, whichever is applicable, reduced by an actuarially determined percentage to ensure that the benefit, as of the effective date of retirement, is the actuarial equivalent of the retirement benefit without an actuarial reduction.

Source: L. 87: Entire article R&RE, p. 1061, § 1, effective July 1; (1) amended and (2) repealed, pp. 1098, 1100, §§ 7, 11, effective July 1. L. 88: (1) amended, p. 970, § 4, effective July 1. L. 93: (3) added, p. 477, § 2, effective July 1. L. 98: (1) and (3)(b) amended, p. 915, § 3, effective July 1. L. 2006: (1)(b) amended, p. 1183, § 14, effective May 25. L. 2010: (1) and IP(3) amended and (4) added, (SB 10-001), ch. 2, p. 16, § 15, effective January 1, 2011.

Editor's note: The provisions of this section are similar to provisions of several former sections as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.


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