38-907

38-907. Credit for military service

A. A member of the plan may receive credited service for periods of active military
service performed before employment with the member's current employer if:

1. The member was honorably separated from the military service.

2. The period of military service for which the member receives credited service
does not exceed forty-eight months.

3. The period of military service for which the member receives credited service is
not on account with any other retirement system, except as provided by 10 United States
Code section 12736.

4. The member pays the cost to purchase the prior active military service. The cost
is the amount necessary to equal the increase in the actuarial present value of projected
benefits resulting from the additional credited service.

5. The amount of benefits purchased pursuant to this subsection is subject to
limits established by section 415 of the internal revenue code.

B. An active member of the plan who volunteers or is ordered to perform military
service may receive credited service for not more than sixty months of military service
as provided by the uniformed services employment and reemployment rights act (38 United
States Code part III, chapter 43). The member's employer shall make employer
contributions and the member shall make the member contributions pursuant to subsection C
of this section if the member meets the following requirements:

1. Was an active member of the plan on the day before the member began military
service.

2. Entered into and served in the armed forces of the United States or is a member
of the national guard.

3. Complies with the notice and return to work provisions of 38 United States Code
section 4312.

C. Contributions made pursuant to subsection B of this section shall be for the
period of time beginning on the date the member began military service and ending on the
later of one of the following dates:

1. The date the member is separated from military service.

2. The date the member is released from service related hospitalization or two
years after initiation of service related hospitalization, whichever date is earlier.

3. The date the member dies as a result of or during military service.

D. Notwithstanding any other law, on payment of the contributions made pursuant to
subsection B of this section, the member shall be credited with service for retirement
purposes for the period of military service of not more than sixty months. The member
shall submit a copy of the military discharge certificate (DD-256A) and a copy of the
military service record (DD-214) or its equivalent with the member's application when
applying for credited service corresponding to the period of military service.

E. The employer and the member shall make contributions pursuant to subsection B of
this section as follows:

1. Contributions shall be based on the compensation that the member would have
received but for the period that the member was ordered into active military service.

2. If the employer cannot reasonably determine the member's rate of compensation
for the period that the member was ordered into military service, contributions shall be
based on the member's average rate of compensation during the twelve-month period
immediately preceding the period of military service.

3. If a member has been employed less than twelve months before being ordered into
military service, contributions shall be based on the member's compensation being earned
immediately preceding the period of military service.

4. The member has up to three times the length of military service, not to exceed
sixty months, to make the member contributions. Once the member has made the member
contributions or on receipt of the member's death certificate, the employer shall make
the employer contributions in a lump sum. Death benefits shall be calculated as
prescribed by law.

5. If the member's employer pays military differential wage pay to members serving
in the military, contributions shall be paid to the plan pursuant to section 38-891 for
any military differential wage pay paid to the member while performing military service.

F. In computing the length of total credited service of a member for the purpose of
determining retirement benefits or eligibility, the period of military service, as
prescribed by this section, shall be included.

G. If a member performs military service due to a presidential call-up, not to
exceed forty-eight months, the employer shall make the employer and member contributions
computed pursuant to subsection E of this section on the member's return and in
compliance with subsection B of this section.

H. In addition to, but not in duplication of, the provisions of subsection B of
this section, beginning December 12, 1994 contributions, benefits and credited service
provided pursuant to this section shall be provided pursuant to section 414(u) of the
internal revenue code, and this section shall be interpreted in a manner consistent with
that internal revenue code section.