(1) Additional service purchased for members eligible for the retirement incentive program under 19-2-706 , MCA, is limited to 3 years or restrictions otherwise in place in 19-3-513 , MCA. The number of months of active duty military service or service from other public retirement systems purchased by a member after January 1, 1990, will reduce the amount of additional service for which the member is eligible to a combined total of no more than 60 months.
(2) Members must apply for additional service under the retirement incentive program on forms provided by the board prior to their voluntary termination from covered employment during the window period.
(3) Members involuntarily terminated must apply for additional service under the retirement incentive program on forms provided by the board on or after May 14, 1993, but prior to January 1, 1994. Members applying under 19-2-706 , MCA, must apply after January 1, 1995, on forms provided by the board.
(4) The board will review the applications to determine the number of years of additional service an employer may purchase for the member. The board will also determine the number of years of additional service which a member is eligible to purchase on their own behalf. The board may request any additional information it deems necessary from the employer or the member to complete this review.
(5) After review, the board will send the application to the employer to certify the following data:
(a) termination date;
(b) reason for termination (voluntary, reduction in force, or other) ;
(c) whether the member has taken advantage of other benefits provided as an alternative to this program; and
(d) whether the position was eliminated or reclassified.
(6) After receiving certification, the board will formally review and approve the request.
(7) The board will base the cost on the member's final 12 months of service, ending with the last full month of service. When calculating the cost for a member working part-time but whose final average salary will be based on full-time service, the final 12-month salary will be proportionally adjusted. The cost for purchasing the service will be billed to the member's former employer after approval of the application and the additional service will be utilized when computing the member's retirement benefit.
(8) A cost statement to purchase the additional service will be sent to the employer after the member terminates. The employer may pay the amount in full within one month of billing, or may select an installment plan. Under an installment plan, the maximum period is 10 years, and employers may make annual or monthly payments. Installment plans will include interest at an effective annual rate of 8%, compounded monthly. The board will provide early payoff or pay down figures at the request of employers. Prepayments will not relieve the employer of the obligation to make the next installment payment unless the amount owing is paid in full.