§88-341  Rights of members separated fromservice.  (a)  [2006 amendment retroactive to July 1, 2004.  L 2006, c169, §43.]  Any class H member who ceases to be an employee and whohas fewer than five years of credited service, excluding unused sick leave,shall upon application to the board, be paid all of the former employee'saccumulated contributions, and the former employee's membership shall thereuponterminate and all credited service shall be forfeited; provided that anindividual shall not be paid the individual's accumulated contributions ifeither:

(1)  The individual becomes an employee again withinfifteen calendar days from the date the individual ceased to be an employee; or

(2)  At the time the application for return ofaccumulated contributions is received by the board, the individual has becomean employee again.

Regular interest shall be credited to theformer employee's account until the former employee's accumulated contributionsare withdrawn; provided that the former employee's membership shall notcontinue after the fourth full year following the calendar year in which theindividual's employment terminates. If the former employee does not become anemployee again and has not withdrawn the former employee's accumulatedcontributions, the system shall return the former employee's accumulatedcontributions to the former employee as soon as possible after the formeremployee attains age sixty-two.

(b)  Any class H member having five or moreyears of credited service who ceases to be an employee, upon application to theboard, shall be paid an amount equal to the former employee's hypotheticalaccount balance and the former employee's membership shall thereupon terminateand all credited service shall be forfeited; provided that the individual shallnot be paid the individual's hypothetical account balance if either:

(1)  The individual becomes an employee again withinfifteen calendar days from the date the individual ceased to be an employee; or

(2)  At the time the application for payment of theindividual's hypothetical account balance is received by the board, theindividual has become an employee again.

If the contributions are not withdrawn by theformer employee after the individual's employment terminates, the formeremployee shall have vested benefit status and shall be eligible for the serviceretirement benefit in effect at the time of the former employee's retirement,payable in accordance with this chapter.

(c)  In case of the death after the terminationof service and prior to retirement of any former class H member who has notwithdrawn the member's contributions, there shall be paid to the formermember's estate or to the person as the former member has nominated by writtendesignation duly executed and filed with the board if either:

(1)  The former member had less than five years ofcredited service at the time of death, the former member's accumulatedcontributions; or

(2)  The former member had five or more years ofcredited service at the time of death, the former member's hypothetical accountbalance. [L 2004, c 179, pt of §1; am L 2005, c 58, §31; am L 2006, c 169, §39]