1. (a) Any firefighter or policeman who was employed by the city as a firefighter or policeman prior to the 1978 amendment to this part, which was effective May 1, 1978, and who was also employed on the 6th day of November, 1979, and who has served as a firefighter or policeman for the city for as long as 20 years, may be retired and his or her name placed on the pension roll upon his or her application therefor. Any person so retired shall be paid monthly from the fund as follows: (1) 20 years of service shall receive 50 percent of monthly salary at time of retirement. (2) 21 years of service shall receive 51 percent of monthly salary at time of retirement. (3) 22 years of service shall receive 52 percent of monthly salary at time of retirement. (4) 23 years of service shall receive 53 percent of monthly salary at time of retirement. (5) 24 years of service shall receive 54 percent of monthly salary at time of retirement. (6) 25 years of service shall receive 55 percent of monthly salary at time of retirement. (7) 26 years of service shall receive 56 percent of monthly salary at time of retirement. (8) 27 years of service shall receive 57 percent of monthly salary at time of retirement. (9) 28 years of service shall receive 58 percent of monthly salary at time of retirement. (10) 29 years of service shall receive 59 percent of monthly salary at time of retirement. (11) 30 years of service shall receive 65 percent of monthly salary at time of retirement. (b) Any firefighter or policeman employed after May 1, 1980, who has been in the service for as long as 20 years, and who is not covered by subsection (a), may be retired and his or her name placed on the pension roll upon his or her application therefor. Any person so retired, upon attaining the age of 60 years, shall be paid monthly from the funds as follows:

   1. (1) 20 years of service shall receive 40 percent of his or her average final salary.
   2. (2) 25 years of service shall receive 50 percent of his or her average final salary.
   3. (3) 30 years of service shall receive 60 percent of his or her average final salary.
   4. (4) 35 years of service shall receive 70 percent of his or her average final salary.
   5. (5) 40 years of service shall receive 80 percent of his or her average final salary.
   6. (c) To calculate the member’s average final salary add the highest three years of salary of the last 10 years of service and divide by 3. Under no circumstances shall the surviving spouse, children, or widowed mother of a deceased firefighter or policeman be paid a pension in excess of three hundred dollars ($300) per month. In no event shall any member of the police or fire department be retained in active service after attaining the age of 65 years.
   7. (d) The city shall continue to pay the health and life insurance premiums of those firefighters and policemen who retired prior to the 1978 amendment. The city will not pay the health and life insurance premiums of those firefighters and policemen who retire or who have retired after May 1, 1978.

(Acts 1947, No. 13, p. 7, § 16; Acts 1971, No. 1807, p. 2974, § 1; Acts 1975, No. 438, p. 1049, § 2; Acts 1978, No. 629, p. 891, § 1; Act 80–300, p. 415, § 2.)