Sec. 1. 5 MRSA §17760, sub-§2, as amended by PL 1991, c. 479, §3, is further amended to read:

2. Service before becoming a member. A member who served as a full-time active duty member of the armed forces before becoming a member of the retirement system is entitled to service credit for the period of time he the member served in the armed forces, under the following terms and conditions.

A. On the date of retirement, the member must have at least 15 years of creditable service.

C. The member must have separated from the armed forces under conditions other than dishonorable, providing that the separation was not upgraded through a program of general amnesty.

D. Except as provided in paragraph E, the member must have begun membership before January 1, 1976.

E. A member who served in the armed forces during any federally recognized period of conflict, as defined in Title 37-B, section 504, subsection 4, paragraph A-1, subparagraph (3), is entitled to service credit under this subsection.

F. Upon complete payment of the back contributions under section 17713, the member shall must be granted service credit for the period of time for which the contributions have been made. Upon making partial payment of the back contributions under section 17713, the member shall must be granted service credit on a pro rata basis in accordance with rules adopted by the board.

Sec. 2. 36 MRSA §653, sub-§1, śC, as amended by PL 1999, c. 462, §2, is further amended to read:

C. The estates up to the just value of $5,000, having a taxable situs in the place of residence, of veterans who served were honorably discharged from active duty in the Armed Forces of the United States:

(1) During any federally recognized war period, including the Korean Campaign, the Vietnam War and the Persian Gulf War, when they When the veterans have reached the age of 62 years or when they the veterans are receiving any form of pension or compensation from the United States Government for total disability, service-connected or nonservice-connected, as a