Montana Code 19-20-904. Adjustment of allowance
19-20-904. Adjustment of allowance. (1) (a) Except as provided by subsection (1)(b), if a retiree receiving a disability retirement allowance is engaged in or is able to engage in a gainful occupation paying more than the difference between the retiree’s retirement allowance and the retiree’s average final compensation or the difference between the median average final compensation of those members retired during the preceding fiscal year and the retiree’s retirement allowance, whichever is greater, the retirement allowance must be reduced to an amount that, together with the amount earnable by the retiree, is equal to the retiree’s average final compensation or the median average final compensation of those members retired during the preceding fiscal year, whichever is greater.
Terms Used In Montana Code 19-20-904
- Average final compensation: means a member's highest average earned compensation, determined pursuant to 19-20-805, on which all required contributions have been made. See Montana Code 19-20-101
- board: means the retirement system's governing board provided for in 2-15-1010. See Montana Code 19-20-101
- Employer: means :
(a)the state of Montana;
(b)a public school district, as provided in 20-6-101 and 20-6-701;
(c)the office of public instruction;
(d)the board of public education;
(e)an education cooperative;
(f)the Montana school for the deaf and blind, as described in 20-8-101;
(g)the Montana youth challenge program, as defined in 10-1-101;
(h)a correctional facility, as defined in 41-5-103;
(i)the Montana university system;
(j)a community college; or
(k)any other agency, political subdivision, or instrumentality of the state that employs a person who is designated a member of the retirement system pursuant to 19-20-302. See Montana Code 19-20-101
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
- retiree: means a person who is considered in retired member status under the provisions of 19-20-810. See Montana Code 19-20-101
- retirement benefit: means a monthly payment due to a retired member who has qualified for service or disability retirement or due to a joint annuitant or beneficiary. See Montana Code 19-20-101
- Service: means the performance of duties that would entitle the person to active membership in the retirement system under the provisions of 19-20-302. See Montana Code 19-20-101
(b)If a disabled retiree is reemployed with the same employer within 30 days from the member‘s effective date of retirement or if the retired member is guaranteed reemployment with the same employer, the member must be considered to have continued in the status of an active member and not to have separated from service. Any retirement allowance payments received by the member must be repaid to the system, together with interest, at the actuarially assumed rate, and the retirement benefit must be terminated.
(2)If the disabled retiree’s earning capacity is changed later, the retirement allowance may be further modified, but the new allowance may not exceed the retirement allowance originally granted or an amount that, when added to the amount earnable by the retiree, equals the retiree’s average final compensation.
(3)The board may, in its discretion, require a recipient of a disability retirement allowance to annually submit an earning statement and any documentation necessary to support the earnings of the recipient.