WILLIAM DONALD SCHAEFER, Governor Ch. 373

employment prior to July 1, 1975, may join the Teachers'
Retirement System if any such employee elects to do so within one
year of July 1, 1976. Clerical employees who enter a contract of
employment after July 1, 1975, shall participate in the Teachers'
Retirement System. However, any eligible professional employee
who joined the Teachers' Retirement System in the period July 1,
1975, to June 30, 1976, without exercising his option as provided
in this subsection, shall be permitted to withdraw his
accumulated contribution in the Teachers' Retirement System. In
the event a professional employee or clerical employee elects not
to become a member of the Teachers' Retirement System and
subsequently becomes a member, [he shall not be permitted to] THE
PROFESSIONAL OR CLERICAL EMPLOYEE MAY purchase credit for service
performed prior to his membership in said system.

(C) (1) IF A PROFESSIONAL OR CLERICAL EMPLOYEE WHO
SUBSEQUENTLY ELECTS TO BECOME A MEMBER, PURCHASES PURCHASE CREDIT
FOR SERVICE PERFORMED BEFORE MEMBERSHIP AS AUTHORIZED IN
SUBSECTION (B) OF THIS SECTION, THE PROFESSIONAL OR CLERICAL
EMPLOYEE SHALL PAY THE TEACHERS' RETIREMENT SYSTEM FOR THE CREDIT
PURCHASED AN AMOUNT EQUAL TO THE SUM OF:

(I)  THE CONTRIBUTIONS THE EMPLOYEE WOULD HAVE
BEEN REQUIRED TO MAKE DURING THE SERVICE PERFORMED BEFORE THE
EMPLOYEE'S ENTRANCE INTO THE TEACHERS' RETIREMENT SYSTEM; AND

(II)  INTEREST AT THE AVERAGE RATE OF INTEREST
COMPOUNDED ANNUALLY FOR THE 5 YEARS PRECEDING THE YEAR OF
PAYMENT.

(2)  THE RATE OF INTEREST FOR ANY 1 YEAR SHALL BE
COMPUTED AS THE SUM OF THE INVESTMENT INCOME AND THE REALIZED
GAINS AND LOSSES DIVIDED BY THE BOOK VALUE OF THE TOTAL
INVESTMENTS.

(3)  A PROFESSIONAL OR CLERICAL EMPLOYEE WHO ELECTS TO
PURCHASE CREDIT FOR SERVICE PERFORMED BEFORE MEMBERSHIP AS
AUTHORIZED IN SUBSECTION (B) OF THIS SECTION MUST DO SO PRIOR TO
JULY 1, 1989.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 17, 1988.

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