Montana Code 19-6-1007. Employment and benefits after DROP period
19-6-1007. Employment and benefits after DROP period. (1) When a member, after the end of the DROP period, continues employment in a covered position, state contributions under 19-6-410, employer contributions under 19-6-404, and member contributions under 19-6-402 must continue to be made to the retirement system.
Terms Used In Montana Code 19-6-1007
- DROP: means the deferred retirement option plan established pursuant to this part. See Montana Code 19-6-1002
- DROP benefit: means the lump-sum benefit calculated and distributed as provided in this part. See Montana Code 19-6-1002
- DROP period: means the period of time that a member irrevocably elects to participate in the DROP subject to the provisions of 19-6-1004. See Montana Code 19-6-1002
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)A member who, after the end of the DROP period, continues employment in a covered position is:
(a)immediately vested for benefits accrued subsequent to the end of the DROP period; and
(b)upon terminating service, entitled to:
(i)the member’s service retirement benefit earned prior to the DROP period, including any postretirement benefit adjustment on that benefit for which the member is eligible under this chapter, subject to subsection (3);
(ii)a service retirement benefit based on the member’s service credit and highest average compensation during membership subsequent to the end of the DROP period, including any postretirement benefit adjustment on that benefit for which the member is eligible under part 7 of this chapter, subject to subsection (3); and
(iii)the member’s DROP benefit.
(3)The postretirement benefit adjustment applied pursuant to subsections (2)(b)(i) and (2)(b)(ii) must commence on January 1 immediately following the member’s retirement and does not apply to the member’s DROP benefit.