19-20-427. Redeposit of contributions previously withdrawn. (1) Except as provided in subsection (3), in addition to the contributions required under 19-20-602 and 19-20-608, subject to the approval of the retirement board, and to the extent permitted by section 415(k)(3) of the Internal Revenue Code, a member may redeposit in the annuity savings account, by a single payment or by an increased rate of contribution, an amount equal to the accumulated contributions that the member has previously withdrawn, plus interest paid as follows:

(a) if a written application to purchase service is signed prior to July 1, 2012, at the rate the contributions would have earned had the contributions not been withdrawn; or

(b) if a written application to purchase service is signed on or after July 1, 2012, at the actuarially assumed interest rate in effect on the date the written application is signed.

(2) The redeposit must be made in accordance with 19-20-415.

(3) A member may not redeposit contributions previously withdrawn under this chapter after retirement benefit payments to the member have started, even if the member returns to active member status.

(4) Except as provided in subsection (3), in addition to the contributions required under 19-20-602 and 19-20-908, subject to the approval of the retirement board, and to the extent permitted by section 415(k)(3) of the Internal Revenue Code, an active member may purchase service credit previously accrued and withdrawn from the Montana public employees' retirement system by redeposit directly to the teachers' retirement system, subject to the following:

(a) the member is not an active member or an inactive member of the public employees' retirement system;

(b) the member has not previously used or transferred the same period of service withdrawn from the public employees' retirement system to purchase service in any other public retirement system;

(c) member and employer contributions and interest must be paid to the teachers' retirement system as follows:

(i) The member shall remit member contributions in an amount equal to the sum of the accumulated contributions that were refunded to the individual at the individual's last termination of membership in the public employees' retirement system plus interest at the actuarially assumed interest rate of the teachers' retirement system in effect on the date the written application is signed. Interest must be calculated from the date of refund from the public employees' retirement system until paid in full to the teachers' retirement system.

(ii) The public employees' retirement system shall transfer employer contributions to the teachers' retirement system in an amount equal to 72% of the member contributions and interest payable by the member as provided in subsection (4)(c)(i).

(d) a member who purchases service from the public employees' retirement system in the teachers' retirement system must have completed 5 years of membership service in the teachers' retirement system to be eligible to receive creditable service pursuant to 19-20-402, 19-20-403, 19-20-404, 19-20-408, 19-20-410, or 19-20-426.