Sec. 1. 5 MRSA §17701, sub-§4, as enacted by PL 1989, c. 710, §2, is repealed and the following enacted in its place:

4.__Payment or repayment of contributions for back time; purchase of service credits.__Wherever under this chapter provision is made for payment or repayment of contributions for back time or for purchase of service credit for uncovered employment through annual direct payments, those payments may be made either by a single annual payment or by an increased rate of contribution through payroll deduction.

Sec. 2. 5 MRSA §18301, sub-§4, as enacted by PL 1989, c. 710, §4, is repealed and the following enacted in its place:

4.__Payment or repayment of contributions for back time; purchase of service credits.__Wherever under this chapter provision is made for payment or repayment of contributions for back time or for purchase of service credit for uncovered employment through annual direct payments, those payments may be made either by a single annual payment or by an increased rate of contribution through payroll deduction.

SUMMARY

This bill provides that annual payments for purchase of service credits by members of the Maine State Retirement System may be either by a single yearly payment or by periodic payments through payroll deduction. Service credits may also be purchased by a single lump-sum, which is unaffected by this bill.