38-816

38-816. Redemption of prior service

A. Any present active elected official may elect to redeem any part of the
following prior service or employment by paying into the fund the amounts required under
subsection B of this section if the prior service or employment is not on account with
any other retirement system or plan:

1. Prior service in this state as an elected official with an employer now covered
by the plan before the effective date of participation if the elected official has
received a refund from a prior retirement system or plan on termination of employment
before the elected official's application for redemption of prior service.

2. Prior service in this state as an elected official with an employer now covered
by the plan before the effective date of participation if the elected official was not
covered by a retirement system or plan during the elected official's prior elected
official service.

3. Prior service as an elected official of this state or a city, town or county of
this state if the elected official was not covered by a retirement system or plan during
that service whether or not the city, town or county is an employer now covered by the
plan.

4. Prior employment with the United States government, a state of the United States
or a political subdivision of a state of the United States.

B. Any present active elected official who elects to redeem any part of the prior
service or employment for which the elected official is deemed eligible by the board
under this section shall pay into the plan the amounts previously withdrawn by the
elected official as a refund of the elected official's accumulated contributions, if any,
plus the additional amount, if any, that is computed by the plan's actuary and that is
necessary to equal the increase in the actuarial present value of projected benefits
resulting from the redemption calculated using the actuarial methods and assumptions that
are prescribed by the plan's actuary.

C. On approval by the governing body of an incorporated city or town that executes
a joinder agreement under section 38-815, the city or town may pay into the fund all or
any part of the amount sufficient to provide retirement benefits for elected officials or
former elected officials for the time of service as an elected official of the city or
town before the joinder agreement if no retirement benefits were in effect for elected
officials during the time of service being redeemed under this section.

D. A member electing to redeem service pursuant to this section may pay for service
being redeemed in the form of a lump sum payment to the plan, a trustee-to-trustee
transfer or a direct rollover of an eligible distribution from a plan described in
section 402(c)(8)(B)(iii), (iv), (v) or (vi) of the internal revenue code or a rollover
of an eligible distribution from an individual retirement account or annuity described in
section 408(a) or (b) of the internal revenue code.