(a) No employee of a participating municipality whose membership in the retirement system is contingent on his or her own election to join under § 45-21-8(c), shall receive prior service credit unless the employee makes application for membership within one year from the effective date of participation of the municipality by which the employee is employed. Any employee who elects not to join this retirement system, as provided in § 45-21-8(b), may thereafter be admitted to membership, but no employee shall receive credit for prior service unless the employee applies for membership within one year from the effective date of participation of the municipality by which the employee is employed.
(b) Any member who becomes an employee after the effective date of participation by a municipality into the system, has the privilege of purchasing credit for prior service with the city or town of which the employee is now employed. This privilege does not become effective until a member has had at least one year of service following his or her latest reentry into membership with the system, and credit is granted only when the member makes a lump sum payment of six percent (6%) of the rate of compensation in effect on the date of reentry, plus regular interest, compounded annually from that date to the date of purchase. The maximum period of service that may be purchased under this section is ten (10) years. Upon granting prior service under the provisions of this section, the board shall bill the applicable city or town for its share of the total liability for the prior service. Effective July 1, 2012, any purchase requested under this paragraph shall be made by a member at full actuarial cost.
History of Section.
P.L. 1951, ch. 2784, § 6; G.L. 1956, § 41-21-9; P.L. 1966, ch. 166, § 1; P.L. 1981, ch. 133, § 2; P.L. 2011, ch. 408, § 11; P.L. 2011, ch. 409, § 11.