104.040. Members to receive credit for prior service--military service to be considered--purchase of credit for service in the armed forces, cost, interest rate, computation--certain creditable prior
Members to receive credit for prior service--military service to beconsidered--purchase of credit for service in the armed forces,cost, interest rate, computation--certain creditable priorservice, purchase of, effect--nonfederal public employment,purchase of credit for service.
104.040. 1. Any member shall be entitled to creditable prior servicewithin the meaning of sections 104.010 to 104.272 for all service in theUnited States Army, Navy, or other armed services of the United States, orany women's auxiliary thereof in time of active armed warfare, if suchmember was a state employee immediately prior to his or her entry into thearmed services and became an employee of the state within ninety days aftertermination of such service by an honorable discharge or release toinactive status; the requirement of section 104.010 of duties during notless than one thousand hours for status as an "employee" shall not apply topersons who apply for creditable prior service pursuant to the provisionsof this section.
2. Any member of the system who served as an employee prior to theoriginal effective date of sections 104.010 to 104.272, but was not anemployee on that date, shall be entitled to creditable prior service thatsuch member would have been entitled to had such member become a member ofthe retirement system on the date of its inception if such member has, orhereafter attains, one year of continuous membership service.
3. Any employee who completes one continuous year of creditableservice in the system shall receive credit for service with a statedepartment, if such service has not otherwise been credited.
4. Any member who had served in the armed forces of the United Statesprior to becoming a member, or who is otherwise ineligible pursuant tosubsection 1 of this section or other provisions of this chapter, and whobecame a member after his or her discharge under honorable conditions mayelect, prior to retirement, to purchase all of his or her creditable priorservice equivalent to such service in the armed forces, but not to exceedfour years, if the member is not receiving and is not eligible to receiveretirement credits or benefits from any other public or private retirementplan for the service to be purchased, and an affidavit so stating shall befiled by the member with the retirement system. However, if the member iseligible to receive retirement credits in a United States military serviceretirement system, the member shall be permitted to purchase creditableprior service equivalent to his or her service in the armed services, butnot to exceed four years, any other provision of law to the contrarynotwithstanding. The purchase shall be effected by the member's paying tothe retirement system an amount equal to what would have been contributedby the state in his or her behalf had the member been a member for theperiod for which the member is electing to purchase credit and had his orher compensation during such period of membership been the same as theannual salary rate at which the member was initially employed as a member,with the calculations based on the contribution rate in effect on the dateof his or her employment with simple interest calculated from date ofemployment from which the member could first receive creditable service tothe date of election pursuant to this subsection. The payment shall bemade over a period of not longer than two years, measured from the date ofelection, and with simple interest on the unpaid balance. Payments madefor such creditable prior service pursuant to this subsection shall betreated by the retirement system as would contributions made by the stateand shall not be subject to any prohibition on member contributions orrefund provisions in effect at the time of enactment of this subsection.
5. Any uniformed member of the highway patrol who served as acertified police officer prior to becoming a member may elect, prior toretirement, to purchase all of his or her creditable prior serviceequivalent to such service in the police force, but not to exceed fouryears, if he or she is not receiving and is not eligible to receive creditsor benefits from any other public or private retirement plan for theservice to be purchased, and an affidavit so stating shall be filed by themember with the retirement system. The purchase shall be effected by themember's paying to the retirement system an amount equal to what would havebeen contributed by the state in his or her behalf had he or she been amember of the system for the period for which the member is electing topurchase credit and had his compensation during such period been the sameas the annual salary rate at which the member was initially employed as amember, with the calculations based on the contribution rate in effect onthe date of his or her employment with simple interest calculated from thedate of employment from which the member could first receive creditableservice to the date of election pursuant to the provisions of this section.The payment shall be made over a period of not longer than two years,measured from the date of election, and with simple interest on the unpaidbalance. Payments made for such creditable prior service pursuant to theprovisions of this section shall be treated by the retirement system aswould contributions made by the state and shall not be subject to anyprohibition on member contributions or refund provisions in effect at thetime of enactment of this section.
6. Any member of the system under section 104.030 or 104.170 who isan active employee and who served as a nonfederal full-time public employeein this state prior to becoming a member may elect, prior to retirement, topurchase all of his or her creditable prior service equivalent to suchservice, but not to exceed four years, if he or she is not receiving and isnot eligible to receive credits or benefits from any other public plan forthe service to be purchased. The purchase shall be effected by themember's paying to the retirement system an amount equal to what would havebeen contributed by the state in his or her behalf had he or she been amember of the system for the period for which the member is electing topurchase credit and had his compensation during such period been the sameas the annual salary rate at which the member was initially employed as amember, with the calculations based on the contribution rate in effect onthe date of his or her employment with simple interest calculated from thedate of employment from which the member could first receive creditableservice to the date of election pursuant to the provisions of this section.The payment shall be made over a period of not longer than two years,measured from the date of election, and with simple interest on the unpaidbalance. Payments made for such creditable prior service pursuant to theprovisions of this section shall be treated by the retirement system aswould contributions made by the state and shall not be subject to anyprohibition on member contributions or refund provisions in effect at thetime of enactment of this section. All purchase payments under thissubsection must be completed prior to retirement or prior to termination ofemployment. If a member who purchased creditable service under thissubsection dies prior to retirement, the surviving spouse may, upon writtenrequest, receive a refund of the amount contributed for such purchase ofsuch creditable service. The surviving spouse shall not be eligible for arefund under this subsection if he or she is entitled to survivorshipbenefits payable under section 104.140. A member who is entitled to adeferred annuity under section 104.035 shall be ineligible to purchaseservice under this subsection.
(L. 1955 p. 718 § 5, A.L. 1982 H.B. 1720, et al., A.L. 1983 H.B. 713 Revision, A.L. 1984 H.B. 1370, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 H.B. 674, A.L. 1992 S.B. 499, et al., A.L. 1994 H.B. 1149, A.L. 1999 S.B. 308 & 314, A.L. 2003 S.B. 248, et al., A.L. 2007 S.B. 127 merged with S.B. 406)