State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_135 > GS_135-5

§ 135‑5.  Benefits.

(a)        Service RetirementBenefits. –

(1)        Any member mayretire upon electronic submission or written application to the Board ofTrustees setting forth at what time, as of the first day of a calendar month,not less than one day nor more than 120 days subsequent to the execution of andfiling thereof, he desires to be retired: Provided, that the said member at thetime so specified for his retirement shall have attained the age of 60 yearsand have at least five years of membership service or shall have completed 30years of creditable service.

(2)        Repealed by SessionLaws 1983 (Regular Session, 1984), c. 1019, s. 1.

(3)        Any member who wasin service October 8, 1981, who had attained 60 years of age, may retire uponelectronic submission or written application to the Board of Trustees settingforth at what time, as of the first day of a calendar month, not less than oneday nor more than 120 days subsequent to the execution and filing thereof, hedesires to be retired.

(4)        Any member who is alaw‑enforcement officer, and who attains age 50 and completes 15 or moreyears of creditable service in this capacity or who attains age 55 andcompletes five or more years of creditable service in this capacity, may retireupon electronic submission or written application to the Board of Trusteessetting forth at what time, as of the first day of a calendar month, not lessthan one day nor more than 120 days subsequent to the execution and filingthereof, he desires to be retired; Provided, also, any member who has met theconditions herein required but does not retire, and later becomes a teacher oran employee other than as a law‑enforcement officer shall continue tohave the right to commence retirement.

(5)        Any member who iseligible for and is being paid a benefit under the Disability Income Plan asprovided in G.S. 135‑105 or G.S. 135‑106 shall be deemed a memberin service and may not retire under the provisions of this section. Any memberwho has made electronic submission or written application for long‑termor extended short‑term benefits under the Disability Income Plan asprovided in G.S. 135‑105 or G.S. 135‑106, and who has been rejectedby the Plan's Medical Board for a long‑term or extended short‑termbenefit shall have 90 days from the date of notification of the rejection toconvert his application to an early or service retirement application, providedthat the member meets the eligibility requirements, effective the first day ofthe month following the month in which short‑term disability benefitsended or the first day of the month following the month in which any salarycontinuation as may be provided in G.S. 135‑104 ended, whichever islater.

(a1)      Early ServiceRetirement Benefits. – Any member may retire and receive a reduced retirementallowance upon electronic submission or written application to the Board ofTrustees setting forth at what time, as of the first day of a calendar month,not less than one day nor more than 120 days subsequent to the execution of andfiling thereof, he desires to be retired: Provided, that the said member at thetime so specified for his retirement shall have attained the age of 50 yearsand have at least 20 years of creditable service.

(b)        Service RetirementAllowances of Persons Retiring on or after July 1, 1959, but prior to July 1,1963. – Upon retirement from service on or after July 1, 1959, but prior toJuly 1, 1963, a member shall receive a service retirement allowance which shallconsist of:

(1)        An annuity whichshall be the actuarial equivalent of his accumulated contributions at the timeof his retirement; and

(2)        A pension equal tothe annuity allowable at the age of 65 years or at his retirement age,whichever is the earlier age, computed on the basis of contributions made priorto such earlier age; and

(3)        If he has a priorservice certificate in full force and effect, an additional pension which shallbe equal to the sum of:

a.         The annuity whichwould have been provided at his retirement age by the contributions which hewould have made during such prior service had the System been in operation andhad he contributed thereunder at the rate of six and twenty‑fivehundredths per centum (6.25%) of his compensation; and

b.         The pension whichwould have been provided on account of such contributions at age 65, or at hisretirement age, whichever is the earlier age.

If the member has not lessthan 20 years of creditable service, he shall be entitled to a total retirementallowance of not less than seventy dollars ($70.00) per month; provided thatthe computation shall be made prior to any reduction resulting from theselection of an optional allowance as provided by subsection (g) of thissection.

(b1)      Service RetirementAllowances of Members Retiring on or after July 1, 1963, but prior to July 1,1967. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1963, but prior to July 1, 1967, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday, suchallowance shall be equal to the sum of (i) one percent (1%) of the portion ofhis average final compensation not in excess of forty‑eight hundreddollars ($4,800) plus one and one‑half percent (1½%) of the portion of suchcompensation in excess of forty‑eight hundred dollars ($4,800),multiplied by the number of years of his creditable service rendered prior toJanuary 1, 1966, and (ii) one percent (1%) of the portion of his average finalcompensation not in excess of fifty‑six hundred dollars ($5,600) plus oneand one‑half percent (1½%) of the portion of such compensation in excessof fifty‑six hundred dollars ($5,600), multiplied by the number of yearsof his creditable service rendered after January 1, 1966.

(2)        If the member'sservice retirement date occurs before his sixty‑fifth birthday, hisservice retirement allowance shall be computed as in (1) above, but shall bereduced by five twelfths of one percent (5/12 of 1%) thereof for each month bywhich his retirement date precedes the first day of the month coincident withor next following his sixty‑fifth birthday.

(3)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b2)      Service RetirementAllowance of Members Retiring on or after July 1, 1967, but prior to July 1,1969. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1967, but prior to July 1, 1969, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday, suchallowance shall be equal to one and one‑quarter percent (1¼%) of theportion of his average final compensation not in excess of fifty‑sixhundred dollars ($5,600) plus one and one‑half percent (1½%) of theportion of such compensation in excess of fifty‑six hundred dollars($5,600), multiplied by the number of years of his creditable service.

(2)        If the member'sservice retirement date occurs before his sixty‑fifth birthday, hisservice retirement allowance shall be computed as in (1) above, but shall bereduced by one third of one percent (1/3 of 1%) thereof for each month by whichhis retirement date precedes the first day of the month coincident with or nextfollowing his sixty‑fifth birthday.

(3)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b3)      Service RetirementAllowances of Members Retiring on or after July 1, 1969, but prior to July 1,1973. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1969, but prior to July 1, 1973, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday,regardless of his years of creditable service, or on or after his sixty‑secondbirthday and the completion of 30 years of creditable service, such allowanceshall be equal to one and one‑quarter percent (1¼%) of the portion of hisaverage final compensation not in excess of fifty‑six hundred dollars($5,600) plus one and one‑half percent (1½%) of the portion of suchcompensation in excess of fifty‑six hundred dollars ($5,600), multipliedby the number of years of his creditable service.

(2)        If the member'sservice retirement date occurs before his sixty‑fifth birthday and priorto his completion of 30 or more years of creditable service, his serviceretirement allowance shall be computed as in (1) above, but shall be reduced byone quarter of one percent (¼ of 1%) thereof for each month by which hisretirement date precedes the first day of the month coincident with or nextfollowing his sixty‑fifth birthday.

(3)        If the member'sservice retirement date occurs before his sixty‑second birthday but on orafter his completion of 30 or more years of creditable service, his serviceretirement allowance shall be computed as in (1) above, but shall be reduced byone quarter of one percent (¼ of 1%) thereof for each month by which hisretirement date precedes the first day of the month coincident with or nextfollowing his sixty‑second birthday.

(4)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b4)      Service RetirementAllowances of Members Retiring on or after July 1, 1973, but prior to July 1,1975. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1973, but prior to July 1, 1975, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday,regardless of his years of creditable service, or after the completion of 30years of creditable service, such allowance shall be equal to one and one‑quarterpercent (1¼%) of the portion of his average final compensation not in excess offive thousand six hundred dollars ($5,600) plus one and one‑half percent(1½%) of the portion of such compensation in excess of five thousand sixhundred dollars ($5,600), multiplied by the number of years of his creditableservice.

(2)        If the member'sservice retirement date occurs before his sixty‑fifth birthday and priorto his completion of 30 or more years of creditable service, his serviceretirement allowance shall be computed as in (1) above, but shall be reduced byone quarter of one percent (¼ of 1%) thereof for each month by which hisretirement date precedes the first day of the month coincident with or nextfollowing his sixty‑fifth birthday.

(3)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b5)      Service RetirementAllowance of Members Retiring on or after July 1, 1975, but prior to July 1,1977. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1975, but prior to July 1, 1977, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday,regardless of his years of creditable service, or after the completion of 30years of creditable service, such allowance shall be equal to one and one‑halfpercent (1½%) of his average final compensation, multiplied by the number ofyears of his creditable service.

(2)        If the member'sservice retirement date occurs before his sixty‑fifth birthday and priorto his completion of 30 or more years of creditable service, his retirementallowance shall be computed as in (1) above, but shall be reduced by onequarter of one percent (¼ of 1%) thereof for each month by which his retirementdate precedes the first day of the month coincident with or next following hissixty‑fifth birthday.

(3)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b6)      Service RetirementAllowance of Members Retiring on or after July 1, 1977, but prior to July 1,1980. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1977, but prior to July 1, 1980, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday,regardless of his years of creditable service, or after the completion of 30years of creditable service, such allowance shall be equal to one and fifty‑fiveone hundredths percent (1.55%) of his average final compensation, multiplied bythe number of years of his creditable service.

(2a)      If the member'sservice retirement date occurs after his sixtieth and before his sixty‑fifthbirthday and prior to his completion of 30 or more years of creditable service,his retirement allowance shall be computed as in (1) above, but shall bereduced by one quarter of one percent (¼ of 1%) thereof for each month by whichhis retirement date precedes the first day of the month coincident with or nextfollowing his sixty‑fifth birthday.

(2b)      If the member'sservice retirement date occurs before his sixtieth birthday and prior to hiscompletion of 30 or more years of creditable service, his service retirementallowance shall be the actuarial equivalent of the allowance payable at the ageof 60 years as computed in (2a) above.

(3)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b7)      Service RetirementAllowance of Members Retiring on or after July 1, 1980, but prior to July 1,1985. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1980, but prior to July 1, 1985, a member shall receive aservice retirement allowance computed as follows:

(1)        If the member'sservice retirement date occurs on or after his sixty‑fifth birthday orafter the completion of 30 years of creditable service, such allowance shall beequal to one and fifty‑seven hundredths percent (1.57%) of his averagefinal compensation, multiplied by the number of years of his creditableservice.

(2)        If the member'sservice retirement date occurs after his sixtieth and before his sixty‑fifthbirthday and prior to his completion of 30 or more years of creditable service,his retirement allowance shall be computed as in (1) above but shall be reducedby one‑quarter of one percent (¼ of 1%) thereof for each month by whichhis retirement date precedes the first day of the month coincident with or nextfollowing his sixty‑fifth birthday.

(3)        If the member'sservice retirement date occurs before his sixtieth birthday and prior to hiscompletion of 30 or more years of creditable service, his service retirementallowance shall be the actuarial equivalent of the allowance payable at the ageof 60 years as computed in (2) above.

(4)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b8)      Service RetirementAllowance of Law‑Enforcement Officers Retiring on or after January 1,1985 [on or after January 1, 1985, but prior to July 1, 1985]. – Uponretirement from service, in accordance with subsection (a) of this section, onor after January 1, 1985 [on or after January 1, 1985, but prior to July 1,1985], a member who is a law‑enforcement officer or an eligible formerlaw‑enforcement officer shall receive a service retirement allowancecomputed as follows:

(1)        If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law‑enforcement officer, or afterthe completion of 30 years of creditable service, the allowance shall be equalto one and fifty‑seven one hundredths percent (1.57%) of his averagefinal compensation, multiplied by the number of years of his creditableservice.

(2)        If the member'sservice retirement date occurs after his 50th and before his 55th birthday with15 or more years of creditable service as a law‑enforcement officer andprior to his completion of 30 years of creditable service, his retirementallowance shall be computed as in (1) above, but shall be reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following his 55thbirthday.

(b9)      Service RetirementAllowance of Members Retiring on or after July 1, 1985, but before July 1,1988. – Upon retirement from service, in accordance with subsection (a) above,on or after July 1, 1985, but before July 1, 1988, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw‑enforcement officer or an eligible former law‑enforcementofficer shall receive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law‑enforcement officer, or afterthe completion of 30 years of creditable service, the allowance shall be equalto one and fifty‑eight one hundredths percent (1.58%) of his averagefinal compensation, multiplied by the number of years of his creditableservice.

b.         If the member'sservice retirement date occurs after his 50th and before his 55th birthday with15 or more years of creditable service as a law‑enforcement officer andprior to his completion of 30 years of creditable service, his retirementallowance shall be computed as in a. above, but shall be reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following his 55thbirthday.

(2)        A member who is nota law‑enforcement officer or an eligible former law‑enforcementofficer shall receive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday or after thecompletion of 30 years of creditable service or on or after his 60th birthdayupon the completion of 25 years of creditable service, such allowance shall beequal to one and fifty‑eight hundredths percent (1.58%) of his averagefinal compensation, multiplied by the number of years of his creditableservice.

b.         If the member'sservice retirement date occurs after his 60th and before his 65th birthday andprior to his completion of 25 or more years of creditable service, hisretirement allowance shall be computed as in a. above but shall be reduced byone‑quarter of one percent (¼ of 1%) thereof for each month by which hisretirement date precedes the first day of the month coincident with or nextfollowing his 65th birthday.

c.         If the member'sservice retirement date occurs before his 60th birthday and prior to hiscompletion of 30 or more years of creditable service, his service retirementallowance shall be the actuarial equivalent of the allowance payable at the ageof 60 years as computed in b. above.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b10)    Service RetirementAllowance of Members Retiring on or after July 1, 1988, but before July 1,1989. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1988, but before July 1, 1989, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and sixty hundredths percent (1.60%) of his average final compensation,multiplied by the number of years of his creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(1)b.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30 yearsof creditable service or on or after his 60th birthday upon the completion of25 years of creditable service, such allowance shall be equal to one and sixtyhundredths percent (1.60%) of his average final compensation, multiplied by thenumber of years of his creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(2)b, c and d.

(b11)    Service RetirementAllowance of Members Retiring on or after July 1, 1989, but before July 1,1990. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1989, but before July 1, 1990, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and sixty‑three hundredths percent (1.63%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(1)b.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and sixty‑three hundredths percent (1.63%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(2)b, c and d.

(b12)    Service RetirementAllowance of Members Retiring on or after July 1, 1990, but before July 1,1992. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1990, but before July 1, 1992, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and sixty‑four hundredths percent (1.64%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(1)b.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and sixty‑four hundredths percent (1.64%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(2)b, c and d.

(b13)    Service RetirementAllowance of Members Retiring on or after July 1, 1992, but before July 1,1993. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1992, but before July 1, 1993, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and seventy hundredths percent (1.70%) of his average final compensation,multiplied by the number of years of his creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(1)b.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and seventy hundredths percent (1.70%) of his average final compensation,multiplied by the number of years of creditable service.

b.         This allowance shallalso be governed by the provisions of G.S. 135‑5(b9)(2)b., c., and d.

(b14)    Service RetirementAllowance of Members Retiring on or after July 1, 1993, but before July 1,1994. – Upon retirement from service in accordance with subsection (a) above,on or after July 1, 1993, but before July 1, 1994, a member shall receive thefollowing service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and seventy‑one hundredths percent (1.71%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs after his 50th and before his 55th birthday with15 or more years of creditable service as a law enforcement officer and priorto the completion of 30 years of creditable service, the allowance shall becomputed as in G.S. 135‑5(b14)(1)a., but shall be reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which the retirement dateprecedes the first day of the month coincident with or next following his 55thbirthday.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and seventy‑one hundredths percent (1.71%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th birthday and before his 65thbirthday and prior to the completion of 25 years or more of creditable service,the retirement allowance shall be computed as in G.S. 135‑5(b14)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following his 65th birthday.

c.         If the member'sservice retirement date occurs before his 60th birthday and prior to thecompletion of 30 or more years of creditable service, the service retirementallowance shall be the actuarial equivalent of the allowance payable at the ageof 60 years as computed in G.S. 135‑5(b14)(2)b.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(b).

(b15)    Service RetirementAllowance of Members Retiring on or after July 1, 1994, but before July 1,1995. – Upon retirement from service in accordance with subsection (a) or (a1)above, on or after July 1, 1994, but before July 1, 1995, a member shallreceive the following service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and seventy‑three hundredths percent (1.73%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs on or after his 50th birthday and before his55th birthday with 15 or more years of creditable service as a law enforcementofficer and prior to the completion of 30 years of creditable service, hisretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance payable under G.S. 135‑5(b15)(1)a. reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following the monththe member would have attained his 55th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b15)(1)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and seventy‑three hundredths percent (1.73%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th and before his 65th birthday andprior to his completion of 25 years or more of creditable service, hisretirement allowance shall be computed as in G.S. 135‑5(b15)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following his 65th birthday.

c.         If the member'searly service retirement date occurs on or after his 50th birthday and beforehis 60th birthday and after completion of 20 years of creditable service butprior to the completion of 30 years of creditable service, his early serviceretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance as computed under G.S. 135‑5(b15)(2)a. but reduced bythe sum of five‑twelfths of one percent (5/12 of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following the month the member would have attained his60th birthday, plus one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his 60th birthday precedes the first day of the month coincidentwith or next following his 65th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b15)(2)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement; or

3.         If the member'screditable service commenced prior to July 1, 1994, the service retirementallowance provided by G.S. 135‑5(b14)(2)c.

d.         Notwithstanding the foregoingprovisions, any member whose creditable service commenced prior to July 1,1963, shall not receive less than the benefit provided by G.S. 135‑5(b).

(b16)    Service RetirementAllowance of Members Retiring on or After July 1, 1995, but Before July 1,1997. – Upon retirement from service in accordance with subsection (a) or (a1)above, on or after July 1, 1995, but before July 1, 1997, a member shallreceive the following service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and seventy‑five hundredths percent (1.75%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs on or after his 50th birthday and before his55th birthday with 15 or more years of creditable service as a law enforcementofficer and prior to the completion of 30 years of creditable service, hisretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance payable under G.S. 135‑5(b16)(1)a. reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following the monththe member would have attained his 55th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b16)(1)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of creditable service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and seventy‑five hundredths percent (1.75%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th and before his 65th birthday andprior to his completion of 25 years or more of creditable service, hisretirement allowance shall be computed as in G.S. 135‑5(b16)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the month coincidentwith or next following his 65th birthday.

c.         If the member'searly service retirement date occurs on or after his 50th birthday and beforehis 60th birthday and after completion of 20 years of creditable service butprior to the completion of 30 years of creditable service, his early serviceretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance as computed under G.S. 135‑5(b16)(2)a. but reducedby the sum of five‑twelfths of one percent (5/12 of 1%) thereof for each monthby which his retirement date precedes the first day of the month coincidentwith or next following the month the member would have attained his 60thbirthday, plus one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his 60th birthday precedes the first day of the month coincidentwith or next following his 65th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b16)(2)a. reduced byfive percent (5%) times the difference between 30 years and his creditable serviceat retirement; or

3.         If the member'screditable service commenced prior to July 1, 1994, the service retirementallowance equal to the actuarial equivalent of the allowance payable at the ageof 60 years as computed in G.S. 135‑5(b16)(2)b.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall not receive less than the benefit provided by G.S. 135‑5(b).

(b17)    Service RetirementAllowance of Members Retiring on or After July 1, 1997, but Before July 1,2000. – Upon retirement from service in accordance with subsection (a) or (a1)above, on or after July 1, 1997, but before July 1, 2000, a member shallreceive the following service retirement allowance.

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and eighty hundredths percent (1.80%) of his average final compensation,multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs on or after his 50th birthday and before his55th birthday with 15 or more years of creditable service as a law enforcementofficer and prior to the completion of 30 years of creditable service, hisretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance payable under G.S. 135‑5(b17)(1)a, reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following the monththe member would have attained his 55th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b17)(1)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of membership service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and eighty hundredths percent (1.80%) of his average final compensation,multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th birthday and before his 65thbirthday and prior to his completion of 25 years or more of creditable service,his retirement allowance shall be computed as in G.S. 135‑5(b17)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following his 65th birthday.

c.         If the member'searly service retirement date occurs on or after his 50th birthday and beforehis 60th birthday and after completion of 20 years of creditable service butprior to the completion of 30 years of creditable service, his early serviceretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance as computed under G.S. 135‑5(b17)(2)a. but reducedby the sum of five‑twelfths of one percent (5/12 of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following the month the member would have attained his60th birthday, plus one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his 60th birthday precedes the first day of the month coincidentwith or next following his 65th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b17)(2)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement; or

3.         If the member'screditable service commenced prior to July 1, 1994, the service retirementallowance equal to the actuarial equivalent of the allowance payable at the ageof 60 years as computed in G.S. 135‑5(b17)(2)b.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall not receive less than the benefit provided by G.S. 135‑5(b).

(b18)    Service RetirementAllowance of Members Retiring on or After July 1, 2000, but Before July 1,2002. – Upon retirement from service in accordance with subsection (a) or (a1)above, on or after July 1, 2000, but before July 1, 2002, a member shallreceive the following service retirement allowance.

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and eighty‑one hundredths percent (1.81%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs on or after his 50th birthday and before his55th birthday with 15 or more years of creditable service as a law enforcementofficer and prior to the completion of 30 years of creditable service, hisretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance payable under G.S. 135‑5(b18)(1)a. reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following the monththe member would have attained his 55th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b18)(1)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of membership service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and eighty‑one hundredths percent (1.81%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th birthday and before his 65thbirthday and prior to his completion of 25 years or more of creditable service,his retirement allowance shall be computed as in G.S. 135‑5(b18)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following his 65th birthday.

c.         If the member'searly service retirement date occurs on or after his 50th birthday and beforehis 60th birthday and after completion of 20 years of creditable service butprior to the completion of 30 years of creditable service, his early serviceretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance as computed under G.S. 135‑5(b18)(2)a. but reducedby the sum of five‑twelfths of one percent (5/12 of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following the month the member would have attained his60th birthday, plus one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his 60th birthday precedes the first day of the month coincidentwith or next following his 65th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b18)(2)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement; or

3.         If the member'screditable service commenced prior to July 1, 1994, the service retirementallowance equal to the actuarial equivalent of the allowance payable at the ageof 60 years as computed in G.S. 135‑5(b18)(2)b.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall not receive less than the benefit provided by G.S. 135‑5(b).

(b19)    Service RetirementAllowance of Members Retiring on or After July 1, 2002. – Upon retirement fromservice in accordance with subsection (a) or (a1) above, on or after July 1,2002, a member shall receive the following service retirement allowance:

(1)        A member who is alaw enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 55th birthday, and completion offive years of creditable service as a law enforcement officer, or after thecompletion of 30 years of creditable service, the allowance shall be equal toone and eighty‑two hundredths percent (1.82%) of his average finalcompensation, multiplied by the number of years of his creditable service.

b.         If the member'sservice retirement date occurs on or after his 50th birthday and before his55th birthday with 15 or more years of creditable service as a law enforcementofficer and prior to the completion of 30 years of creditable service, hisretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance payable under G.S. 135‑5(b19)(1)a. reduced by one‑thirdof one percent (1/3 of 1%) thereof for each month by which his retirement dateprecedes the first day of the month coincident with or next following the monththe member would have attained his 55th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b19)(1)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement.

(2)        A member who is nota law enforcement officer or an eligible former law enforcement officer shallreceive a service retirement allowance computed as follows:

a.         If the member'sservice retirement date occurs on or after his 65th birthday upon thecompletion of five years of membership service or after the completion of 30years of creditable service or on or after his 60th birthday upon thecompletion of 25 years of creditable service, the allowance shall be equal toone and eighty‑two hundredths percent (1.82%) of his average finalcompensation, multiplied by the number of years of creditable service.

b.         If the member'sservice retirement date occurs after his 60th birthday and before his 65thbirthday and prior to his completion of 25 years or more of creditable service,his retirement allowance shall be computed as in G.S. 135‑5(b19)(2)a. butshall be reduced by one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following his 65th birthday.

c.         If the member'searly service retirement date occurs on or after his 50th birthday and beforehis 60th birthday and after completion of 20 years of creditable service butprior to the completion of 30 years of creditable service, his early serviceretirement allowance shall be equal to the greater of:

1.         The serviceretirement allowance as computed under G.S. 135‑5(b19)(2)a. but reducedby the sum of five‑twelfths of one percent (5/12 of 1%) thereof for eachmonth by which his retirement date precedes the first day of the monthcoincident with or next following the month the member would have attained his60th birthday, plus one‑quarter of one percent (¼ of 1%) thereof for eachmonth by which his 60th birthday precedes the first day of the month coincidentwith or next following his 65th birthday; or

2.         The serviceretirement allowance as computed under G.S. 135‑5(b19)(2)a. reduced byfive percent (5%) times the difference between 30 years and his creditableservice at retirement; or

3.         If the member'screditable service commenced prior to July 1, 1994, the service retirementallowance equal to the actuarial equivalent of the allowance payable at the ageof 60 years as computed in G.S. 135‑5(b19)(2)b.

d.         Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall not receive less than the benefit provided by G.S. 135‑5(b).

(c)        DisabilityRetirement Benefits of Members Leaving Service Prior to January 1, 1988. – Theprovisions of this subsection shall not be applicable to members in service onor after January 1, 1988. Upon the application of a member or of his employer,any member who has had five or more years of creditable service may be retiredby the Board of Trustees, on the first day of any calendar month, not less thanone day nor more than 120 days next following the date of filing suchapplication, on a disability retirement allowance: Provided, that the medicalboard, after a medical examination of such member, shall certify that suchmember is mentally or physically incapacitated for the further performance ofduty, that such incapacity was incurred at the time of active employment andhas been continuous thereafter, that such incapacity is likely to be permanent,and that such member should be retired; Provided further the medical boardshall determine if the member is able to engage in gainful employment and, ifso, the member may still be retired and the disability retirement allowance asa result thereof shall be reduced as in subsection (e) below. Provided further,that the medical board shall not certify any member as disabled who:

(1)        Applies fordisability retirement based upon a mental or physical incapacity which existedwhen the member first established membership in the system; or

(2)        Is in receipt of anypayments on account of the same disability which existed when the member firstestablished membership in the system.

The Board of Trustees shallrequire each employee upon enrolling in the retirement system to provideinformation on the membership application concerning any mental or physicalincapacities existing at the time the member enrolls.

Supplemental disabilitybenefits heretofore provided are hereby made a permanent part of disability benefitsafter age 65, and shall not be discontinued at age 65.

Notwithstanding therequirement of five or more years of creditable service to the contrary, amember who is a law‑enforcement officer and who has had one year or moreof creditable service and becomes incapacitated for duty as the natural andproximate result of an accident occurring while in the actual performance ofduty, and meets all other requirements for disability retirement benefits, maybe retired by the Board of Trustees on a disability retirement allowance.

Notwithstanding the foregoingto the contrary, any beneficiary who commenced retirement with an early orservice retirement benefit has the right, within three years of his retirement,to convert to an allowance with disability retirement benefits withoutmodification of any election of optional allowance previously made; provided,the beneficiary presents clear and convincing evidence that the beneficiarywould have met all applicable requirements for disability retirement benefitswhile still in service as a member. The allowance on account of disabilityretirement benefits to the beneficiary shall be retroactive to the effectivedate of early or service retirement.

Notwithstanding the foregoing,the surviving designated beneficiary of a deceased member who met all otherrequirements for disability retirement benefits, except whose death occurredbefore the first day of the calendar month in which the member's disabilityretirement allowance was to be due and payable, may elect to receive thereduced retirement allowance provided by a one hundred percent (100%) joint andsurvivor payment option in lieu of a return of accumulated contributions,provided the following conditions apply:

(1)        The member haddesignated as the principal beneficiary, to receive a return of accumulatedcontributions at the time of his death, one and only one person, and

(2)        The member had notinstructed the Board of Trustees in writing that he did not wish the provisionof this subsection to apply.

(d)        Allowance onDisability Retirement of Persons Retiring on or after July 1, 1959, but priorto July 1, 1963. – Upon retirement for disability, in accordance withsubsection (c) above, on or after July 1, 1959, but prior to July 1, 1963, amember shall receive a service retirement allowance if he has attained the ageof 60 years, otherwise he shall receive a disability retirement allowance whichshall consist of:

(1)        An annuity whichshall be the actuarial equivalent of his accumulated contributions at the timeof retirement;

(2)        A pension equal toseventy‑five per centum (75%) of the pension that would have been payableupon service retirement at the age of 65 years had the member continued inservice to the age of 65 years without further change in compensation.

If the member has not lessthan 20 years of creditable service, he shall be entitled to a total retirementallowance of not less than seventy dollars ($70.00) per month; provided, thatthe computation shall be made prior to any reduction resulting from an optionalallowance as provided by subsection (g) of this section.

(d1)      Allowance onDisability Retirement of Persons Retiring on or after July 1, 1963, but priorto July 1, 1969. – Upon retirement for disability, in accordance withsubsection (c) above, on or after July 1, 1963, but prior to July 1, 1969, amember shall receive a service retirement allowance if he has attained the ageof 60 years, otherwise he shall receive a disability retirement allowance whichshall be computed as follows:

(1)        Such allowance shallbe equal to the service retirement allowance which would have been payable hadhe continued in service without further change in compensation, to the age of60 years, minus the actuarial equivalent to the contributions he would havemade during such continued service.

(2)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(d).

(d2)      Allowance onDisability Retirement of Persons Retiring on or after July 1, 1969, but priorto July 1, 1971. – Upon retirement for disability, in accordance withsubsection (c) above, on or after July 1, 1969, but prior to July 1, 1971, amember shall receive a service retirement allowance if he has attained the ageof 60 years, otherwise he shall receive a disability retirement allowance whichshall be computed as follows:

(1)        Such allowance shallbe equal to the service retirement allowance which would have been payable hadhe continued in service without further change in compensation to the age of 65years, minus the actuarial equivalent of the contributions he would have madeduring such continued service.

(2)        Notwithstanding theforegoing provisions, any member whose creditable service commenced prior toJuly 1, 1963, shall receive not less than the benefit provided by G.S. 135‑5(d).

(d3)      Allowance onDisability Retirement of Persons Retiring on or after July 1, 1971, but priorto July 1, 1982. – Upon retirement for disability, in accordance with subsection(c) of this section on or after July 1, 1971, but prior to July 1, 1982, amember shall receive a service retirement allowance if he has attained the ageof 65 years; otherwise he shall receive a disability retirement allowance whichshall be computed as follows:

(1)        Such allowance shallbe equal to a service retirement allowance calculated on the basis of themember's average final compensation prior to his disability retirement and thecreditable service he would have had at the age of 65 years if he had continuedin service.

(2)        Notwithstanding theforegoing provisions,

a.         Any member whosecreditable service commenced prior to July 1, 1971, shall receive not less thanthe benefit provided by G.S. 135‑5(d2);

b.         The amount ofdisability allowance payable from the reserve funds of the Retirement System toany member retiring on or after July 1, 1974, who is eligible for and inreceipt of a disability benefit under the Social Security Act shall be seventypercent (70%) of the amount calculated under a above, and the balance shall beprovided by the employer from time to time during each year in such amounts asmay be required to cover such payments as current disbursements; and

c.         The amount ofdisability allowance payable to any member retiring on or after July 1, 1974,who is not eligible for and in receipt of a disability benefit under the SocialSecurity Act shall not be payable from the reserve funds of the RetirementSystem but shall be provided by the employer from time to time during each yearin such amounts as may be required to cover such payments as currentdisbursements.

(d4)      Allowance onDisability Retirement of Persons Retiring on or after July 1, 1982, Who LeftService prior to January 1, 1988. – Upon retirement for disability, in accordancewith subsection (c) of this section on or after July 1, 1982, a member who leftservice prior to January 1, 1988 shall receive a service retirement allowanceif he has qualified for an unreduced service retirement allowance; otherwisethe allowance shall be equal to a service retirement allowance calculated onthe member's average final compensation prior to his disability retirement andthe creditable service he would have had had he continued in service until theearliest date on which he would have qualified for an unreduced serviceretirement allowance.

(e)        Reexamination ofBeneficiaries Retired for Disability. – The provisions of this subsection shallbe applicable to members retired on a disability retirement allowance and shallnot be applicable to members in service on or after January 1, 1988. Once eachyear during the first five years following retirement of a member on adisability retirement allowance, and once in every three‑year periodthereafter, the Board of Trustees may, and upon his application shall, requireany disability beneficiary who has not yet attained the age of 60 years toundergo a medical examination, such examination to be made at the place ofresidence of said beneficiary or other place mutually agreed upon, by aphysician or physicians designated by the Board of Trustees. Should anydisability beneficiary who has not yet attained the age of 60 years refuse tosubmit to at least one medical examination in any such year by a physician orphysicians designated by the Board of Trustees, his allowance may bediscontinued until his withdrawal of such refusal, and should his refusalcontinue for one year all his rights in and to his pension may be revoked bythe Board of Trustees.

(1)        The Board ofTrustees shall determine whether a disability beneficiary is engaged in or isable to engage in a gainful occupation paying more than the difference, ashereinafter indexed, between his disability retirement allowance and the grosscompensation earned as an employee during the 12 consecutive months of servicein the final 48 months prior to retirement producing the highest grosscompensation excluding any compensation received on account of termination. Ifthe disability beneficiary is earning or is able to earn more than thedifference, the portion of his disability retirement allowance not provided byhis contributions shall be reduced to an amount which, together with theportion of the disability retirement allowance provided by his contributionsand the amount earnable by him shall equal the amount of his gross compensationprior to retirement. This difference shall be increased on January 1 each yearby the ratio of the Consumer Price Index to the Index  one year earlier,calculated to