§88-324 - Acquisition of membership service.

§88-324 Acquisition of membership service. (a)
Under rules as the board may adopt, any class H member may file with the system
a statement of all service as an employee or other service paid for by the
State or a county rendered prior to the member last becoming a member that is
not credited to the member, for which the member claims prior service credit,
and also a statement of the services for which the member claims membership
service credit and, except as provided in subsection (d) or with respect to
service credit paid for pursuant to section 88-59 under an irrevocable payroll
authorization entered into prior to July 1, 2006, or to forfeited service to
which subsection (e) is applicable, for which the member agrees to have
additional deductions made from the member's compensation or to make a lump sum
payment as described in this section.

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

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

(1) By deductions from the member's compensation
pursuant 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 payroll
authorization filed by the member for a period not to exceed sixty months shall
remain in effect until the completion of the payroll payments or termination of
employment, whichever is earlier. The amount of service credit that may be
acquired pursuant to this method shall not exceed the period over which the
payroll payments are made. The member may elect to have:

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

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

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

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

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

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

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

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

(2) By lump sum payment of contributions computed at
the contribution rate applicable to the member under section 88-45 as of June
30, 2006, applied to the member's monthly rate of compensation at the time of
payment, multiplied by the number of months for which membership service credit
is allowable.

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

(d) Verified prior service and verified
membership 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 date
established by the board pursuant to section 88-322(a), shall be credited at no
cost as class C credited service.

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

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

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

Forfeited class H membership service shall not be
restored.

(f) Forfeited class A or class B credited
service being acquired under an irrevocable payroll authorization entered into
under section 88-59 prior to July 1, 2006, shall be credited as class H
credited service. [L 2004, c 179, pt of §1; am L 2005, c 58, §25; am L 2006, c
169, §35]