§ 19-20-303 — Inactive Membership -- Dormant Membership Status

19-20-303 . Inactive membership -- dormant membership status. (1) A nonvested or vested member's active membership in the retirement system terminates and the member becomes an inactive member when the member ceases to be employed in a position reportable to the retirement system.
(2) A vested member becomes an inactive member of the teachers' retirement system if the member becomes an active member of another retirement or pension system supported wholly or in part by the money of another government agency, except the federal social security retirement system, and the membership in the other retirement system would allow credit for the same employment service in both retirement systems. However, the member may not be excluded from active membership in the teachers' retirement system solely because the person is receiving or is eligible to receive retirement benefits from another retirement system.
(3) A vested inactive member must be transferred to dormant membership status if, by the member's required minimum distribution beginning date, the member cannot be located for involuntary retirement as described in 19-20-703 (3) or has not taken one of the following actions:
(a) elect to terminate membership by withdrawing from the retirement system and taking a refund of the member's accumulated contributions under 19-20-603 ;
(b) apply to receive retirement benefits under part 8 or part 9 of this chapter; or
(c) return to active membership.
(4) A nonvested inactive member must be transferred to dormant membership status if the member fails to take one of the following actions within 7 years after becoming an inactive member:
(a) elect to terminate membership by withdrawing from the retirement system and taking a refund of the member's accumulated contributions under 19-20-603 ; or
(b) return to active membership.
(5) With respect to a member in dormant membership status:
(a) the retirement system shall no longer attempt to locate or contact the member or send communications or annual statements to the member; and
(b) the retirement system shall transfer the amount in the member's annuity savings account to the pension accumulation account and the amount may not be credited with additional interest while the member is in a dormant membership status.
(6) If a vested inactive member in dormant membership status takes an action described in subsection (3), the member is no longer in dormant membership status and the retirement system shall restore the member's account balance and credit the interest that would have been earned if the member had not been transferred to dormant status.
(7) If a nonvested inactive member in dormant membership status takes an action described in subsection (4), the member is no longer in dormant membership status and the retirement system shall restore the member's account balance and credit the interest that would have been earned if the member had not been transferred to dormant status.
(8) Nothing in this section affects the rights, benefits, obligations, or liabilities provided for under this chapter if a member dies in a dormant membership status.

Legislative History

En. 75-6210 by Sec. 105, Ch. 5, L. 1971; R.C.M. 1947, 75-6210; Sec. 19-4-303, MCA 1991; redes. 19-20-303 by Code Commissioner, 1993; amd. Sec. 259, Ch. 56, L. 2009; amd. Sec. 3, Ch. 276, L. 2019; amd. Sec. 3, Ch. 173, L. 2021; amd. Sec. 4, Ch. 136, L. 2025.