Montana Code 19-20-303. Inactive membership — dormant membership status
19-20-303. Inactive membership — dormant membership status. (1) A nonvested or vested member‘s active membership in the retirement system terminates and the member becomes an inactive member when the member ceases to be employed in a position reportable to the retirement system.
Terms Used In Montana Code 19-20-303
- account balance: means the sum of all the amounts deducted from the compensation of a member or paid by a member and credited to the member's individual account in the annuity savings account, together with interest, minus any amount deducted for correction of errors and the aggregate amount of all retirement benefit payments and refunds of accumulated contributions paid to or on behalf of the member. See Montana Code 19-20-101
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- 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
- terminate: means that the employment relationship between the member and the member's employer has been terminated as required in 19-20-810. See Montana Code 19-20-101
- Vested: means that a member has been credited with at least 5 full years of membership service upon which contributions have been made and has a right to a future retirement benefit. See Montana Code 19-20-101
(2)A vested member becomes an inactive member of the teachers’ retirement system if the member becomes an active member of another retirement or pension system supported wholly or in part by the money of another government agency, except the federal social security retirement system, and the membership in the other retirement system would allow credit for the same employment service in both retirement systems. However, the member may not be excluded from active membership in the teachers’ retirement system solely because the person is receiving or is eligible to receive retirement benefits from another retirement system.
(3)A vested inactive member must be transferred to dormant membership status if the member fails to take one of the following actions by April 1 following the calendar year in which the member attains the age of 70 1/2 if the member was born before July 1, 1949, or the age of 72 if the member was born on or after July 1, 1949:
(a)elect to terminate membership by withdrawing from the retirement system and taking a refund of the member’s accumulated contributions under 19-20-603;
(b)apply to receive retirement benefits under part 8 or part 9 of this chapter; or
(c)return to active membership.
(4)A nonvested inactive member must be transferred to dormant membership status if the member fails to take one of the following actions within 7 years after becoming an inactive member:
(a)elect to terminate membership by withdrawing from the retirement system and taking a refund of the member’s accumulated contributions under 19-20-603; or
(b)return to active membership.
(5)With respect to a member in dormant membership status:
(a)the retirement system shall no longer attempt to locate or contact the member or send communications or annual statements to the member; and
(b)the retirement system shall transfer the amount in the member’s annuity savings account to the pension accumulation account and the amount may not be credited with additional interest while the member is in a dormant membership status.
(6)If a vested inactive member in dormant membership status takes an action described in subsection (3), the member is no longer in dormant membership status and the retirement system shall restore the member’s account balance to the member’s annuity savings account and credit the account balance with the interest that would have been earned if the amount had remained in the annuity savings account.
(7)If a nonvested inactive member takes an action described in subsection (4), the member is no longer in dormant membership status and the retirement system shall restore the member’s account balance to the member’s annuity savings account and credit the account balance with the interest that would have been earned if the amount had remained in the annuity savings account.
(8)Nothing in this section affects the rights, benefits, obligations, or liabilities provided for under this chapter if a member dies in a dormant membership status.