Section 23588 - Pension allowance(a) The amount of the monthly pension shall be calculated by multiplying the amount determined in paragraph (1) by the fraction determined in paragraph (2) and if applicable, by adding a service increment in accordance with paragraph (3) and where applicable by applying the reduction determined in paragraph (4). (1) If the average monthly earnings of an employee who became a member prior to January 1, 1975 are less than $450, 60% of such earnings but not less than $130 per month; if the average monthly earnings of an employee who became a member prior to January 1, 1975 are $450 or more; then 55% of the first $650 of such earnings plus 30% of the excess of such earnings but not less than $270 per month; if the employee became a member on or after January 1, 1975, 50% of the member's average monthly earnings.(2) The ratio that the member's years of credited service (years and completed months to two decimals) up to a maximum of 20 is to 20.(3) A service increment which shall be 1% of the member's average monthly earnings for each full year of credited service in excess of 20 and rendered prior to age 65. Such increment shall be limited to a maximum of $100 per month.(4) If the member has no credited service prior to January 1, 1975, his pension shall be reduced upon his attainment of age 65 by an amount equal to 50% of the primary insurance amount paid or payable to him and subject to the following provisions: (i) The eligibility of such member for the old-age insurance benefit and the amount of such benefit upon which the reduction in his pension shall be based shall be determined by the board in accordance with the provisions of the Federal Social Security Act, 42 U.S.C.A. §§ 301 et seq., in effect at the date his pension payments begin, except that in determining such eligibility and such amount only wages or compensation for services covered by this fund shall be included.(ii) Whenever the amount of the reduction from the pension shall have been once determined, it shall remain fixed for the duration of the pension except that any decrease in the old-age insurance benefit under the Federal Social Security Act, 42 U.S.C.A. §§ 301 et seq., shall result in a corresponding decrease in the amount of the reduction from the pension.(iii) The reduction shall not be more than one-half of the pension to which the member is otherwise entitled under the provisions of this act.(b) The amount of any monthly pension of a member who terminates service prior to age 60 shall be either of the following as the member may elect at the time of termination of service: (1) a deferred pension, commencing on attainment of age 60, computed under the provisions of subsection (a) based only on credited service and average monthly earnings to the date of early retirement; or(2) a reduced pension commencing prior to age 60, equal to the deferred pension to which the member would have been eligible had he so elected, reduced 1/2 % for each month that the commencement of the pension precedes the month of the member's attainment of age 60.(c) The amount of any monthly pension for a 25-year retirement (as described in section 7(a) and (e)) shall be determined in accordance with subsection (a) and payable immediately upon retirement without reduction on that portion of the member's average monthly earnings up to $650. The amount of the pension determined in accordance with subsection (a), attributable to the member's average monthly earnings in excess of $650 shall be reduced 1/2 % for each month that the commencement of the pension precedes the month of the member's attainment of age 60.(d) The amount of any monthly pension for a disability retirement shall be determined in accordance with subsection (a) based upon his average monthly earnings at the date of disability and determined as though the member had attained age 60 and completed the greater of his actual credited service or 20 years of service.(e) The amount of any pension granted pursuant to section 7(d) shall be either of the following as the member may elect in his application for pension:(1) a deferred pension, after attainment of age 60, computed under the provisions of subsection (a) but based on credited service and average monthly earnings to the date of termination; or(2) an early pension, commencing prior to age 60 but after attainment of age 50, determined in accordance with the provisions of paragraph 1, reduced 1/2 % for each month that the commencement of the regular pension precedes the month of the member's attainment of age 60. 1975, Aug. 1, P.L. 169, No. 87, § 8, effective Jan. 1, 1975.