Sec. 16. (a) This section does not apply to a participant who becomes permanently disabled, as described in section 17 of this chapter.
(b) A participant who:
(1) applies for a retirement benefit; and
(2) is at least:
(A) sixty-five (65) years of age; or
(B) fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85);
is entitled to an annual retirement benefit as calculated in subsection (c).
(c) Except as provided in subsections (d), (e), and (f), the amount of the annual retirement benefit to which a participant described in subsection (b) is entitled equals the product of:
(1) the highest annual salary that was paid to the participant before separation from service; multiplied by
(2) the percentage prescribed in the following table: