(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:
(a)If the service credit to be purchased is for noncovered employment with
an employer affiliated 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)
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(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:
(a) If the service credit to be purchased is for noncovered employment with
an employer affiliated 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.
(b) The member must provide documentation of the dates of employment
and a record of salary received.
(c) The member must provide certification from any retirement program
covering such employment 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.
(b) Members who first became members on or after January 1, 1999, may
purchase no more 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.
(c) Members who initiate a purchase on or after November 1, 2003, may not
purchase service 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.
(d) 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.
(3) The cost to purchase service credit for noncovered employment shall be
determined by the board and shall be sufficient to pay the actuarial liability
associated with the purchase.
(4) (Deleted by amendment, L. 95, p. 263, � 5, effective July 1, 1995.)
(5) Repealed.
(6) Service credit purchased pursuant to the provisions of this section for
periods of nonmembership 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.
(7) 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).