WILLIAM DONALD SCHAEFER, Governor

Ch. 6

"Member" § 20-101
"Member contribution" § 20-101
"Regular interest" § 20-101
"Retirement" § 20-101

25-306. SAME — PURCHASE OF SERVICE CREDIT BY PAYMENT OF FULL COST.

(A)     IN GENERAL.

A MEMBER MAY PURCHASE SERVICE CREDIT AS PROVIDED IN THIS SECTION
FOR PERIODS OF EMPLOYMENT DESCRIBED IN SUBSECTION (C) FOR WHICH THE
MEMBER IS NOT OTHERWISE ENTITLED TO SERVICE CREDIT.

(B)     PAYMENT FOR SERVICE CREDIT.

(1)      A MEMBER WHO PURCHASES SERVICE CREDIT UNDER THIS SECTION
SHALL:

(I)       COMPLETE A CLAIM FOR THE SERVICE CREDIT AND FILE IT
WITH THE BOARD OF TRUSTEES ON THE FORM THAT THE BOARD OF TRUSTEES
PROVIDES; AND

(II)     PAY TO THE BOARD OF TRUSTEES AN AMOUNT EQUAL TO THE
ANNUITY RESERVE AND PENSION RESERVE REQUIRED TO FUND THE ADDITIONAL
ALLOWANCE.

(2)      THE MEMBER SHALL PAY FOR SERVICE CREDIT PURCHASED UNDER
THIS SECTION:

(I)       IN A SINGLE PAYMENT AT RETIREMENT; OR

(II)     THROUGH A PAYROLL DEDUCTION OF NOT LESS THAN 2% OF
EARNABLE COMPENSATION, WITH THE APPROPRIATE FINAL ADJUSTMENT MADE AT
RETIREMENT.

(C)     TYPES OF SERVICE CREDIT.

A MEMBER MAY PURCHASE SERVICE CREDIT FOR A PERIOD OF EMPLOYMENT:

(1)      NOT EXCEEDING 10 YEARS FOR OUT-OF-STATE PUBLIC SCHOOL
TEACHING SERVICE OR NONPUBLIC SCHOOL TEACHING SERVICE;

(2)      NOT EXCEEDING 10 YEARS FOR FEDERAL SERVICE OR
OUT-OF-STATE SERVICE WITH A POLITICAL SUBDIVISION; OR

(3)      AS AN EMPLOYEE OF A POLITICAL SUBDIVISION OF THIS STATE IF
THE EMPLOYEE IS NOT RECEIVING RETIREMENT BENEFITS FROM A POLITICAL
SUBDIVISION OF THE STATE FOR THE SAME PERIOD OF EMPLOYMENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 7-305.

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