Section 56. A veteran, as defined in section one, in sections fifty-six to sixty, inclusive, called a veteran, who is in the service of the commonwealth, or of any county, city, town or district or any housing authority or any redevelopment authority thereof, shall be retired, with the consent of the retiring authority, if incapacitated for active service, at one half of the highest annual rate of compensation, including any bonuses paid in lieu of additional salary or as a temporary wage increase in addition to his regular compensation, and including any allowance for maintenance, payable to him while he was holding the grade held by him at his retirement, and payable from the same source; provided, that he has been in the said service at least ten years, with a further allowance of one per cent of said annual rate of compensation for each additional year of service, but not to exceed sixty-five per cent in any case; and further provided, that he has a total income from all sources, exclusive of such retirement allowance and of any sum received from the government of the United States as a pension for war service, not exceeding one thousand dollars.

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Any allowance for maintenance referred to in this section or in section fifty-seven or fifty-eight, if received otherwise than as a cash payment, shall be in an amount equal to the value thereof as fixed by the personnel administrator if the veteran is in the employ of the commonwealth, by the county personnel board if the veteran is in the employ of a county, and by the retiring authority if the veteran is in the employ of a city, town or district.