(1) A member who receives additional service under 19-2-706 or 19-3-908 , MCA, may again be employed within the same jurisdiction. However, the member may only work for less than 960 hours in a position covered by the public employees' retirement system or 600 hours in a position covered by another Title 19, MCA, retirement system during any calendar year. A retired member must terminate employment and receive at least one monthly retirement benefit before returning to active service. An inactive member may return to active service within the same jurisdiction after a five-day break in service.

(2) A member who receives the incentive, and returns to employment within the same jurisdiction, must notify the board within one week of employment. Service performed under an independent contract that fails the tests set out in ARM 2.43.302 is employment subject to the 600-hour or the 960-hour limitation and reporting requirements.

(3) Employers must report to the board the following information:

(a) a member who took advantage of the provisions of 19-2-706 or 19-3-908 , MCA, and who returns to work within the same jurisdiction;

(b) current hours worked and amounts paid to the member; and

(c) each member's active service or employment after retirement with an independent contractor or as an independent contractor.

(4) When a member works for 960 or more hours in a position covered by the public employees' retirement system or for 600 or more hours for another Title 19, MCA, retirement system, for the same jurisdiction, the member forfeits the additional service. The board will give employers a credit for the amount they paid for the service minus the total retirement benefits paid to the member. If the employer is paying on an installment contract, the amount due will be the total benefits paid from retirement to forfeiture. The board will charge interest at an effective annual rate of 8%, compounded monthly, for any outstanding balance.