Montana § 19-6-101 - Definitions

§ 19-6-101. Definitions

Definitions. Unless the context requires otherwise, the following definitions apply in this chapter: (1) (a) "Compensation" means remuneration paid from funds controlled by an employer in payment for the member's services or for time during which the member is excused from work because the member has taken compensatory leave, sick leave, annual leave, or a leave of absence before any pretax deductions allowed by state or federal law are made. (b) Compensation does not include: (i) per diems, maintenance, allowances, and expenses; or (ii) bonuses provided after July 1, 2013, that are one-time or temporary payments in addition to and not considered part of base pay. (2) "Dependent child" means an unmarried child of a deceased retired member, who is: (a) under 18 years of age; or (b) under 24 years of age and attending an accredited secondary or postsecondary educational institution as a full-time student in anticipation of receiving a certificate or degree. (3) (a) "Highest average compensation" means a member's highest average monthly compensation during any 36 consecutive months of membership service or, in the event a member has not served at least 36 months, the total compensation earned divided by the number of months of service. (b) Lump-sum payments for compensatory leave, sick leave, and annual leave paid to the member upon termination of employment may be used in the calculation of a retirement benefit only to the extent that they are used to replace, on a month-for-month basis, the normal compensation for a month or months included in the calculation of the highest average compensation. A lump-sum payment may not be added to a single month's compensation. (c) Excess earnings limits must be applied to the calculation of the highest average compensation pursuant to 19-2-1005 (2). (4) "Surviving spouse" means the spouse married to a retired member at the time of the retired member's death. (5) "Survivor" means a surviving spouse or dependent child of a member.