Sec. 1. 5 MRSA §17764, as enacted by PL 1989, c. 709, §3, is amended to read:

§17764. Vista, Peace Corps, Head Start and foreign teaching

Members who served in the Peace Corps, foreign or domestic, the Volunteers in Service to America Program, or the Fulbright Exchange Program or ; who taught children of United States Foreign Service Corps personnel outside the continental United States or United States Armed Forces personnel located in any foreign country on a regularly established United States military base; or who served as an employee of a Head Start program in Maine may purchase service credit for that service under the following conditions. For the purposes of this section "members" means state employees and teachers.

1. Limit on service credit. The service credit may not exceed 2 years, except that for former Head Start employees up to 4 years of service credit may be purchased.

2. Creditable service required. Members whose service in these organizations preceded their becoming members in the Maine State Retirement System must, on the date of retirement, have at least 15 years of creditable service.

3. Return to employment. Members who terminated service in the State as state employees or teachers prior to service with these organizations must return to state employment or active teaching in the State within one year of the completion of service in these organizations.

4. Payment to fund. Members must, before any retirement benefit becomes effective, pay into the Members' Contribution Fund by a single direct payment or annual direct payments to the retirement system an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service. Payments must be made as provided in section 17701.

SUMMARY

This bill authorizes state employee and teacher members of the Maine State Retirement System who formerly were employed by a Head Start program to purchase up to 4 years of service credit for that employment to be used in calculating retirement benefits.