22-11-30.  Retirement benefits; reductions.

A. Retirement benefits for a member retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member’s average annual salary and one percent of the remainder of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

B. Retirement benefits for a member retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member’s average annual salary and one percent of the remainder of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

C. Retirement benefits for a member retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit.

D. Retirement benefits for a member retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of one or more years shall be computed pursuant to Subsection E of this section. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of less than one year shall be computed pursuant to Subsection A of this section if the member’s date of last retirement was on or before June 30, 1967 or pursuant to Subsection B of this section if the member’s date of last retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to Subsection C of this section if the member’s date of last retirement was on or after July 1, 1971 but not later than June 30, 1974.

E. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or after July 1, 1974 but not later than June 30, 1987, shall be paid monthly and shall be one-twelfth of a sum equal to:

     (1) one and one-half percent of the member’s average annual salary multiplied by the number of years of service credit for:

          (a) prior employment; and

          (b) allowed service credit for service performed prior to July 1, 1957, except United States military service credit purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978; plus

     (2) two percent of the member’s average annual salary multiplied by the number of years of service credit for:

          (a) contributory employment;

          (b) allowed service credit for service performed after July 1, 1957; and

          (c) United States military service credit for service performed prior to July 1, 1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978.

F. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act [22-11-1 NMSA 1978] on or after July 1, 1987 but not later than June 30, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that this subsection shall not apply to any member who was retired in any of the four quarters ending on June 30, 1987 without having accumulated not less than 1.0 years earned service credit after June 30, 1987.

G. Retirement benefits for a member who retires pursuant to Section 22-11-23 NMSA 1978 on or after July 1, 1991 shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

     (1) the benefit for a member who retires pursuant to Paragraph (3) of Subsection A of Section 22-11-23 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years but after the member attains the age of fifty-five years; and

          (b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of fifty-five years;

     (2) the benefit formula provided in this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having accumulated at least one year earned service credit beginning on or after July 1, 1991; and

     (3) a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

H. Retirement benefits for a member who retires pursuant to Section 22-11-23.1 NMSA 1978 shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

     (1) the benefit for a member who retires pursuant to Paragraph (3) of Subsection A of Section 22-11-23.1 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty-five years but after the member attains the age of sixty years; and

          (b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years; and

     (2) a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

I. Retirement benefits for a member who retires pursuant to Section 22-11-23.2 NMSA 1978 shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member’s average annual salary multiplied by the number of years of the member’s total service credit; provided that:

     (1) the benefit for a member retiring pursuant to Paragraph (3) of Subsection A of Section 22-11-23.2 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty-five years but after the member attains the age of sixty years; and

          (b) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member attaining the age of sixty years; and

     (2) a member shall be subject to the provisions of Paragraph (1) of this subsection as they existed at the beginning of the member’s last cumulated four quarters of earned service credit, regardless of later amendment.

J. A member’s average annual salary, pursuant to this section, shall be computed on the basis of the last five years for which contribution was made or upon the basis of any consecutive five years for which contribution was made by the member, whichever is higher; provided, however, that lump-sum payments made after July 1, 2010 of accrued sick leave or annual leave shall be excluded from the calculation of salary.

K. Unless otherwise required by the provisions of the Internal Revenue Code of 1986 [26 USCS § 1 et seq.], members shall begin receiving retirement benefits by age seventy years and six months, or upon termination of employment, whichever occurs later.