(A) As used in this section:

1. (1) "Retirement allowance" means any of the following as appropriate:

   1. (a) An allowance calculated under section 145.33 or 145.332 of the Revised Code prior to any reduction for early retirement or election under section 145.46 of the Revised Code of a plan of payment and exclusive of any amounts payable under divisions (I)(2)(b) and (c) or (I)(3)(b) and (c) of section 145.332 of the Revised Code;
   2. (b) An allowance calculated under division (A) of section 145.45 of the Revised Code;
   3. (c) An allowance calculated under division (B)(1)(a) of section 145.331 of the Revised Code.
2. (2) "CBBC" means the contribution based benefit cap, a limit established by the public employees retirement board on the retirement allowance a member may receive.

(C) Prior to paying a retirement allowance, the public employees retirement system shall make the following calculations:

1. (1) Determine an amount equal to the value of the member's accumulated contributions, exclusive of contributions payable under divisions (I)(2)(b) and (c) or (I)(3)(b) and (c) of section 145.332 of the Revised Code but including any contributions made under section 145.483 of the Revised Code that represent member contributions, any contributions used to fund a benefit under section 145.36 of the Revised Code, with interest compounded at a rate approved by the board, and a portion of any amounts paid by an employer under sections 145.297 or 145.298 of the Revised Code, as determined by an actuary appointed by the board;
2. (2) Determine the amount of a single life annuity that is the actuarial equivalent of the amount determined under division (C)(1) of this section, adjusted for age of the member at the time of retirement or, when appropriate, the age at the time of the member's death;
3. (3) Multiply the annuity amount determined under division (C)(2) of this section by the CBBC factor.