§ 6-251. Treatment of employee contributions for prior service with certain other employers.

(a)

Basic Limitation. If an officer or employee makes one or more contributions under this Act, 1933 Ga. Laws, page 213, as amended, to purchase permissive service credit on or after January 1, 1998, the requirements of section 6-250 shall be treated as satisfied if either:

(1)

The requirements of section 415(b) of the U.S. Internal Revenue Code (the `Code') are satisfied, determined by treating the accrued benefit derived from all contributions under this Act for permissive service credit as an annual benefit for purposes of Code section 415(b), provided, however, that the reduced limit under Code section 415(b)(2)(C) (as described in section 6-250(d)) shall not be exceeded solely by reason of this section 6-251; or

(2)

The requirements of Code section 415(c) are satisfied, determined by treating all contributions under this Act for permissive service credit as an annual addition for purposes of Code section 415(c), provided, however, that the percentage limitation under Code section 415(c)(1)(B) shall not be exceeded solely by reason of this section 6-251.

(b)

Limitation on Nonqualified Service. Notwithstanding the foregoing, not more than five years of permissive service credit attributable to nonqualified service shall be taken into account for purposes of this section, and no permissive service credit shall be taken into account before the officer or employee has participated under the provisions of this act for at least five years.

(c)

Definitions.

(1)

Permissive Service Credit. For purposes of this section, the term `permissive service credit' shall mean service credit that (A) is recognized under this Act for purposes of calculating an officer's or employee's benefit, (B) such officer or employee has not received under this Act and (C) such officer or employee may receive only by making a voluntary additional contribution in an amount determined under this Act that does not exceed the amount necessary to fund the benefit attributable to such service credit.

(2)

Nonqualified Service. For purposes of this section, the term 'nonqualified service' means service for which permissive service credit is allowed, other than:

(A)

Service (including parental, medical, sabbatical and similar leave) as an employee of the Government of the United States, any State or political subdivision thereof or any agency or instrumentality of any of the foregoing (other than military service or service for credit that was obtained as a result of a repayment under Code section 415(k)(3));

(B)

Service (including parental, medical, sabbatical and similar leave) as an employee (other than as an employee described in clause (A) above) of an educational organization described in Code section 170(b)(1)(A)(ii) that is a public, private or sectarian school providing elementary or secondary education (through grade 12), as determined under the laws of the State of Georgia;

(C)

Service as an employee of an association of employees who are described in clause (A), above; or

(D)

Military service (other than qualified military service under Code section 414(u)) recognized under this Act.

In the case of service described in clauses (A), (B) or (C), such service will be nonqualified service if recognition of such service would cause an officer or employee to receive a retirement benefit for the same service under more than one retirement plan.

(Ord. No. 2004-84, § III(4), 11-16-04; Ord. No. 2004-89, § 4, 12-10-04)

Note— Section 11 of Ord. No. 2004-89 provided for an effective date for this section of Jan. 1, 2002.