79-933.08 Purchase of service credit within twelve months of retirement; agreement authorized. - Nebraska Statutes

79-933.08. Purchase of service credit within twelve months of retirement; agreement authorized.(1) An employer and a school employee who has completed at least five years of creditable service plus eligibility and vesting credit may by agreement made in contemplation of retirement, to be effective within twelve months of the agreement, purchase service credit for such employee for not to exceed five years of creditable service. Such an agreement may be executed up to twelve months prior to the employee's retirement date. The agreement shall specify whether the school employee shall pay for the service credits, whether the employer shall pay for the service credits, or whether both the employee and employer shall share the cost of the service credits. Such service credits shall be purchased for an amount equal to the actuarial cost to the retirement system for allowing such additional service credit to the employee.(2) Payment for such service credits shall be completed prior to the employee's termination of employment date and may be made through direct payment, installment payments, or an irrevocable deduction authorization. If payments are made on an installment basis, interest shall be charged at the rate of regular interest.(3) Compensation for the period of service purchased shall not be included in determining the member's final average compensation.(4) The retirement board shall credit funds collected pursuant to this section to the Contingent Account pending the employee's retirement. If the employee does not retire within twelve months after the signing of the agreement made pursuant to this section, such funds shall be refunded, excluding interest earned, and the employee shall not be given credit for the service credit attempted to be purchased. SourceLaws 1997, LB 724, § 1; Laws 1999, LB 703, § 14.