Montana Code 19-20-734. Break-in-service requirements
19-20-734. (Temporary) Break-in-service requirements. (1) Except as provided in 19-20-732 and subsection (2) of this section, a retired member who first applies for retirement benefits or applies for resumed or recalculated retirement benefits pursuant to 19-20-733:
Terms Used In Montana Code 19-20-734
- Earned compensation: means , except as limited by subsections (12)(b) and (12)(c) or by 19-20-715, remuneration paid for the service of a member out of funds controlled by an employer before any pretax deductions allowed under the Internal Revenue Code are deducted. See Montana Code 19-20-101
- Employer: means :
(a)the state of Montana;
(b)a public school district, as provided in 20-6-101 and 20-6-701;
(c)the office of public instruction;
(d)the board of public education;
(e)an education cooperative;
(f)the Montana school for the deaf and blind, as described in 20-8-101;
(g)the Montana youth challenge program, as defined in 10-1-101;
(h)a correctional facility, as defined in 41-5-103;
(i)the Montana university system;
(j)a community college; or
(k)any other agency, political subdivision, or instrumentality of the state that employs a person who is designated a member of the retirement system pursuant to 19-20-302. See Montana Code 19-20-101
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
- Position reportable to the retirement system: means a position in which an individual performs duties that would entitle the person to active membership in the retirement system under the provisions of 19-20-302. See Montana Code 19-20-101
- Service: means the performance of duties that would entitle the person to active membership in the retirement system under the provisions of 19-20-302. See Montana Code 19-20-101
(a)based on a date of termination of January 1, 2014, through December 31, 2023, may not be employed in a position reportable to the retirement system pursuant to 19-20-731 until the employee has a break in service of 150 calendar days commencing on the first day following the member’s date of termination; or
(b)based on a date of termination of January 1, 2024, or later, may not be employed in a position reportable to the retirement system pursuant to 19-20-731 until the employee has a break in service of 120 calendar days commencing on the first day following the member’s date of termination.
(2)A retired member may be employed by an employer during the break-in-service period only if:
(a)the retired member:
(i)is employed as a substitute classroom teacher to carry on the duties of a regular, licensed teacher who is temporarily absent;
(ii)performs the service after attaining retired member status; and
(iii)performs the service for no more than 45 days during the break-in-service period; or
(b)the retired member continues employment in a position in which the retired member was appropriately reported to the public employees’ retirement system prior to and at the time of retirement with the teachers’ retirement system.
(3)If a retired member is employed in a position reportable to the retirement system in violation of this section:
(a)the retired member must be returned to active member status with the retirement system retroactive to the member’s date of retirement or the date of resumption of retirement benefits, whichever is later, and the member’s retirement benefits must be terminated;
(b)the member shall repay all retirement benefits received in violation of this section, plus interest at the actuarially assumed rate; and
(c)the member and the employer shall pay to the retirement system contributions on all earned compensation paid to the member for service performed during the break-in-service period, plus interest at the actuarially assumed rate.
(4)For purposes of this section, the term “employed in a position reportable to the retirement system” includes any work performed or service provided by a retired member to or on behalf of an employer, including but not limited to work performed or service provided through a professional employer arrangement, an employee leasing arrangement, as a temporary service contractor, or as an independent contractor. (Terminates June 30, 2027–sec. 6, Ch. 135, L. 2023.)