19-20-905. Cancellation of allowance and restoration of membership. (1) If a disabled retiree is employed in a position reportable to the retirement system and earns compensation in any calendar year in excess of the limitation provided in 19-20-904, the retiree's retirement allowance must cease and the retiree must again become an active member of the retirement system effective on the first day of the month following the month in which the earnings limitation was exceeded. At this point, the member is deemed to be no longer disabled.

(2) (a) Upon subsequent termination of employment in all teachers' retirement system reportable positions, a member who is then eligible based on age or service for either an early retirement allowance under 19-20-802 or a regular retirement allowance under 19-20-804 may immediately apply for a retirement allowance. Eligibility for retirement based on service is determined based on the creditable service credited to the member at the time of disability retirement excluding any creditable service enhancement applied pursuant to 19-20-902(1)(b). The retirement allowance payable upon subsequent retirement is the lesser of:

(i) the early or regular service retirement allowance the member is eligible to receive based on the creditable service and earned compensation credited to the member at the time of the member's disability retirement excluding any creditable service or earned compensation enhancement applied as provided in 19-20-902(1)(b), plus the additional creditable service and earned compensation credited to the member after the return to active member status; or

(ii) an amount equal to the disability retirement benefit received prior to the return to active member status plus a second benefit amount calculated based on the creditable service accrued and average earned compensation credited for all years of service during the return to active member status.

(b) Upon subsequent termination of employment in all teachers' retirement system reportable positions, a member who is not then eligible for an early or regular service retirement allowance under subsection (2)(a) shall wait to apply for a subsequent retirement allowance until eligible under subsection (2)(a) or may make a new application for a disability retirement allowance.

(c) A member who originally retired on a disability allowance and later returned to active member status may not make, and the member's subsequent retirement allowance may not be enhanced by, any permissive service purchase not used in the calculation of the member's original disability retirement allowance.