(1) Service credit may be purchased for any period of previous employment with any public or private employer in the United States, its territories, or any foreign country subject to the following conditions:
If the service credit to be purchased is for noncovered employment with an employeraffiliated with the association, the member must have one year of earned service credit with the association at the time of the purchase. If the service credit to be purchased is for previous employment with a nonaffiliated employer, the member must have one year of earned service credit with the association at the time of the purchase; except that, if the previous employment for which the service credit is to be purchased is nonqualified service, as defined in section 415 (n)(3)(C) of the federal "Internal Revenue Code of 1986", as amended, and the member first became a member of the association on or after January 1, 1999, the member must have five years of earned service credit with the association at the time of the purchase.
The member must provide documentation of the dates of employment and a record ofsalary received.
The member must provide certification from any retirement program covering suchemployment that the service credit to be purchased has not vested with that program, except to the extent otherwise required by federal law.
(2) (a) Except as otherwise provided in paragraph (b) of this subsection (2), one year of service credit may be purchased for each year of noncovered employment determined pursuant to the provisions of section 24-51-501 (2) to (4) applicable to earned service credit.
Members who first became members on or after January 1, 1999, may purchase nomore than five years of service credit for noncovered employment that is nonqualified service, as defined in section 415 (n)(3)(C) of the federal "Internal Revenue Code of 1986", as amended.
Members who initiate a purchase on or after November 1, 2003, may not purchaseservice credit that would cause the total years of noncovered service purchased during their membership to exceed ten years. This limit shall not apply to members who provide all required documentation of previous service to the association by October 31, 2003, together with application to purchase the service if the purchase is successfully completed pursuant to the service credit purchase agreement resulting from said application.
Members employed by a public entity affiliated with the association pursuant to section 24-51-309 may purchase service credit for years employed by the entity without limit, if the purchase is completed before the member terminates employment with the entity, and any such purchase for years employed by the entity in excess of ten years is completed or installment payments initiated within three years after the date the employer affiliates with the association or November 1, 2006, whichever is later.
The cost to purchase service credit for noncovered employment shall be determinedby the board and shall be sufficient to pay the actuarial liability associated with the purchase.
(Deleted by amendment, L. 95, p. 263, § 5, effective July 1, 1995.)
Repealed.
Service credit purchased pursuant to the provisions of this section for periods ofnonmembership shall not be credited toward the earned service credit requirement for disability retirement benefits as provided for in part 7 of this article or the earned service credit requirement for survivor benefit coverage as provided for in part 9 of this article.
A portion of the amount paid by a member to purchase service credit related to noncovered employment shall be transferred to the health care trust fund on the effective date of the member's retirement or, in case of death prior to retirement, on the effective date of the survivor benefit. The amount transferred shall be one and two one-hundredths percent of the member's highest average salary at the time of the purchase, with interest at the rate specified in section 24-51-101 (28)(a).
Source: L. 87: Entire article R&RE, p. 1057, § 1, effective July 1. L. 89: (1) R&RE and (2) and (3) amended, p. 1072, §§ 1, 2, effective April 19. L. 92: (4) and (5) amended, p. 1108, § 1, effective May 14; (4) amended and (5) repealed, p. 1134, §§ 2, 3, effective July 1. L. 95: (1)(b), (1)(c), (2), and (4) amended, p. 263, § 5, effective July 1. L. 97: (1)(b) amended, p. 65, § 7, effective July 1. L. 99: (1)(a) amended, p. 6, § 1 , effective February 19. L. 2003: IP(1) amended and (2)(c), (2)(d), and (7) added, p. 2608, §§ 4, 5, effective November 1. L. 2006: (3) and (7) amended, p. 1181, § 12, effective May 25.
Editor's note: (1) This section is similar to former §§ 24-51-1202 and 24-51-1203 as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.
(2) Amendments to subsections (4) and (5) by House Bill 92-1205 and House Bill 921335 were harmonized.