§88-324  Acquisition of membership service.  (a) Under rules as the board may adopt, any class H member may file with the systema statement of all service as an employee or other service paid for by theState or a county rendered prior to the member last becoming a member that isnot credited to the member, for which the member claims prior service credit,and also a statement of the services for which the member claims membershipservice credit and, except as provided in subsection (d) or with respect toservice credit paid for pursuant to section 88-59 under an irrevocable payrollauthorization entered into prior to July 1, 2006, or to forfeited service towhich subsection (e) is applicable, for which the member agrees to haveadditional deductions made from the member's compensation or to make a lump sumpayment as described in this section.

After the filing of the statement by themember, the system shall verify the service claimed and determine the servicecredit allowable.

(b)  Except as otherwise provided in subsection(c), (d), or (e), verified membership service shall be paid for in any one ofthe following methods, at the member's option:

(1)  By deductions from the member's compensationpursuant to section 414(h)(2) of the Internal Revenue Code of 1986, as amended,under the employer pick up plan under section 88-326.  An irrevocable payrollauthorization filed by the member for a period not to exceed sixty months shallremain in effect until the completion of the payroll payments or termination ofemployment, whichever is earlier.  The amount of service credit that may beacquired pursuant to this method shall not exceed the period over which thepayroll payments are made.  The member may elect to have:

(A)  Deductions from the member's compensationof twice the contribution rate provided for in section 88-325 over a periodequal to the period for which membership service credit is allowable not toexceed sixty months; or

(B)  Deductions from the member's compensationof one and one-half times the contribution rate provided for in section 88-325over a period equal to twice the period for which membership service credit isallowable, not to exceed sixty months; or

(2)  By lump sum payment of contributions computed atthe contribution rate provided for in section 88-325 applied to the member'smonthly rate of compensation at the time of payment multiplied by the number ofmonths for which membership service credit is allowable.

The deductions from compensation or lump sumpayment shall be paid to the system and shall be credited to the member'sindividual account and become part of the member's accumulated contributions.

Class H membership service credit in additionto any other service credited to the member shall be allowed for the period forwhich the deductions from compensation or lump sum payment have been made inaccordance with this subsection.

(c)  Verified membership service for which aformer class A or class B member in service on June 30, 2006, was eligible asof June 30, 2006, but failed to claim by the date established by the boardpursuant to section 88-322(b), shall be paid for in any one of the followingmethods, at the member's option:

(1)  By deductions from the member's compensationpursuant to section 414(h)(2) of the Internal Revenue Code of 1986, as amended,under the employer pick up plan under section 88-326.  An irrevocable payrollauthorization filed by the member for a period not to exceed sixty months shallremain in effect until the completion of the payroll payments or termination ofemployment, whichever is earlier.  The amount of service credit that may beacquired pursuant to this method shall not exceed the period over which thepayroll payments are made.  The member may elect to have:

(A)  Deductions from the member's compensationof twice the contribution rate applicable to the member under section 88-45 asof June 30, 2006, over a period equal to the period for which membershipservice credit is allowable, not to exceed sixty months; or

(B)  Deductions from the member's compensationof one and one-half times the contribution rate applicable to the member undersection 88-45 as of June 30, 2006, over a period equal to twice the period forwhich membership service credit is allowable, not to exceed sixty months; or

(2)  By lump sum payment of contributions computed atthe contribution rate applicable to the member under section 88-45 as of June30, 2006, applied to the member's monthly rate of compensation at the time ofpayment, multiplied by the number of months for which membership service creditis allowable.

The deductions from compensation or lump sum paymentshall be paid to the system and shall be credited to the member's individualaccount and become part of the member's accumulated contributions.

Class H membership service credit in additionto any other service credited to the member shall be allowed for the period forwhich the deductions from compensation or lump sum payment have been made inaccordance with this subsection.

(d)  Verified prior service and verifiedmembership service for which a former class C member in service on June 30,2006, was eligible as of June 30, 2006, but failed to claim by the dateestablished by the board pursuant to section 88-322(a), shall be credited at nocost as class C credited service.

(e)  Except as provided in subsection (f) or insection 88-322:

(1)  Class A, class B, or class C credited serviceshall not be acquired as class H credited service; and

(2)  Class A, class B, or class C credited serviceshall be restored as class C credited service at the rate of one month ofservice credit for each month of service rendered following the later ofconversion to class H membership or the return to membership as a class Hmember.

Forfeited class H membership service shall not berestored.

(f)  Forfeited class A or class B creditedservice being acquired under an irrevocable payroll authorization entered intounder section 88-59 prior to July 1, 2006, shall be credited as class Hcredited service. [L 2004, c 179, pt of §1; am L 2005, c 58, §25; am L 2006, c169, §35]