Section 881.309 - Superannuation retirementRetirement for superannuation shall be as follows:
(1) Any contributor who has reached superannuation retirement age may retire for superannuation by filing with the board a written statement, duly attested, setting forth on what date he desires to be retired. Said application shall make the superannuation retirement allowance effective on the date so specified, if such application was filed in the office of the board or deposited in the United States mail, addressed to the board, before the date specified in the application and before the death of the contributor, but the date so specified in the application shall not be more than ninety days after the date of filing, or the date the application was deposited in the mail.(2) On retirement for superannuation, a contributor shall be entitled to a retirement allowance throughout his life, which shall consist of (i) a member's annuity of equivalent actuarial value to his accumulated deductions, and the balance in the member's excess investment account, and (ii) a municipal annuity which shall be equal to, for current service, one one-hundredth of his final salary for each year of service while a member, and, in addition thereto for prior service in the case of an original member, one one-hundredth of his prior salary for each year of prior service.(3) The superannuation retirement allowance provided in this section or the withdrawal allowance provided in section 311, as the case may be, payable to a joint coverage member after the age at which social security old age insurance benefits become payable shall be reduced by an amount equal to forty per cent of the primary insurance amount of social security paid or payable to him. Such reduction shall be subject to the following provisions: (i) the reduction in benefits in accordance with this clause (3) shall not be applied in the case of an annuitant until age sixty-five, unless such annuitant shall have elected to receive social security benefits prior to age sixty-five,(ii) the eligibility of such member for the old age insurance benefit (primary insurance amount) and the amount of such old age insurance benefit upon which the reduction in his allowance shall be based, shall be determined by the board in accordance with the provisions of the Federal Social Security Act, in effect on the effective date of superannuation retirement, or withdrawal, of the member, except that in determining such eligibility and such amount only wages or compensation for service covered by the system shall be included,(iii) the reduction in benefits in accordance with this clause (3) shall apply only to that portion of benefits based on wages as defined in the Federal Insurance Contribution Act, (iv) the reduction of benefits in accordance with this clause (3) shall be limited to the municipal annuity calculated in accordance with clause (2) of this section,(v) the total sum including social security old age insurance benefits to be received upon superannuation retirement or withdrawal by a joint coverage member shall not be less than the allowance that he would be paid as a single coverage member,(vi) whenever the amount of the reduction from the superannuation retirement allowance or the withdrawal allowance shall have been once determined, it shall remain fixed for the duration of the allowance, except that any decrease in the old age insurance benefit under the Federal Social Security Act shall result in a corresponding decrease in the amount of the reduction in the allowance,(vii) the reduction provided for in this clause (3) shall not apply to disability allowances payable under section 313 of this act.(4) In no event shall the municipal annuity at the time of retirement exceed fifty per cent of the contributor's final salary.(5) Other provisions of this act notwithstanding, any member of a police force who was a member of a pension fund created under the provisions of the act of May 29, 1956 (P.L. 1804, No. 600), and who was entitled to retire at the age of fifty-five or sixty years after twenty years of total service, or at the age of fifty or fifty-five after twenty-five years of service, and to receive the pension provided by that act, shall have the same entitlement under the system created pursuant to this act. The municipal annuity, computed under subclause (ii) of clause (3) above, shall be increased as needed, in addition to the member's annuity, in order to pay any increased retirement allowance resulting from the provisions of the act.1974, No. 1, P.L. 34, No. 15, § 309, effective in 90 days. Amended 1980, May 17, P.L. 135, No. 50, § 9, effective in 60 days.