§ 45-21-9 - Prior service credit of members joining by election – Purchase of credit for prior service. - Rhode Island Statutes

SECTION 45-21-9

   § 45-21-9  Prior service credit of membersjoining by election – Purchase of credit for prior service. – (a) No employee of a participating municipality whose membership in theretirement system is contingent on his or her own election to join under §45-21-8(c), shall receive prior service credit unless the employee makesapplication for membership within one year from the effective date ofparticipation of the municipality by which the employee is employed. Anyemployee who elects not to join this retirement system, as provided in §45-21-8(b), may thereafter be admitted to membership, but no employee shallreceive credit for prior service unless the employee applies for membershipwithin one year from the effective date of participation of the municipality bywhich the employee is employed.

   (b) Any member who becomes an employee after the effectivedate of participation by a municipality into the system, has the privilege ofpurchasing credit for prior service with the city or town of which the employeeis now employed. This privilege does not become effective until a member hashad at least one year of service following his or her latest reentry intomembership with the system, and credit is granted only when the member makes alump sum payment of six percent (6%) of the rate of compensation in effect onthe date of reentry, plus regular interest, compounded annually from that dateto the date of purchase. The maximum period of service that may be purchasedunder this section is ten (10) years. Upon granting prior service under theprovisions of this section, the board shall bill the applicable city or townfor its share of the total liability for the prior service.