19-3-2113. (Effective on occurrence of contingency or July 1, 2002, whichever is earlier) Reinstatement of plan membership -- purchase of prior service in defined benefit plan. (1) (a) An employee who terminated membership in the defined benefit plan, the defined contribution plan, or the optional retirement program after making an election pursuant to 19-3-2111 or 19-3-2112 and who returns to covered employment after a break in service of less than 24 consecutive months shall become a member of the plan that the member last selected and is not eligible for a new plan choice election.
     (b) Except as provided in subsection (2), an employee who terminated membership in either the defined benefit plan, the defined contribution plan, or the optional retirement program after making an election pursuant to 19-3-2111 or 19-3-2112 and who returns to covered employment after a break in service of 24 consecutive months or more is eligible to make a plan choice election as if the employee were initially hired as provided for in 19-3-2111(1)(b).
     (2) (a) An employee who returns to covered employment after terminating plan membership in the defined contribution plan or the optional retirement program shall return to the plan previously selected if the employee has accessed money derived from the employee's former retirement account by:
     (i) receiving a lump-sum distribution of the member's former retirement account, unless the distribution was forced pursuant to 19-3-2126(1)(b);
     (ii) receiving a lump-sum distribution from an account outside the defined contribution plan that has at any time received a transfer of funds from the member's former retirement account or any account to which the member has transferred funds from a former retirement account; or
     (iii) receiving a regular benefit, payment, or distribution from an account outside the defined contribution plan in which there is money from the member's former retirement account.
     (b) For the purposes of this subsection (2), "retirement account" also includes an employee's account under the optional retirement program.
     (3) (a) An employee who returns to covered employment after terminating membership in the defined benefit plan, who is eligible to make a plan choice, and who elects to join the defined benefit plan may reinstate prior membership service as provided in 19-2-603.
     (b) An employee who returns to covered employment after terminating membership in the defined contribution plan or the optional retirement program, who is eligible to make a plan choice, and who elects to join the defined benefit plan may purchase prior membership service by paying to the board the full actuarial cost of the service as of the latest actuarial valuation of the defined benefit plan. The employee may not purchase membership service under this section in excess of the employee's length of service as a member of the defined contribution plan or the optional retirement program.

     History: En. Sec. 49, Ch. 471, L. 1999.