Montana Code Annotated 2009

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     19-3-412. Optional membership. (1) Except as provided in 5-2-304 and subsection (2) of this section, the following employees and elected officials in covered positions shall elect either to become active members of the retirement system or to decline this optional membership by filing an irrevocable, written application with the board in the manner prescribed in subsection (3):
     (a) elected officials of the state or local governments, including individuals appointed to fill the unexpired term of elected officials, who:
     (i) are paid on a salary or wage basis rather than on a per diem or other reimbursement basis; or
     (ii) were members receiving retirement benefits under the defined benefit plan or a distribution under the defined contribution plan at the time of their election;
     (b) employees serving in employment that does not cumulatively exceed a total of 960 hours of covered employment with all employers under this chapter in any fiscal year;
     (c) employees directly appointed by the governor;
     (d) employees working 10 months or less for the legislative branch to perform work related to the legislative session;
     (e) the chief administrative officer of any city or county;
     (f) employees of county hospitals or rest homes.
     (2) A member who is elected to a local government position in which the member works less than 960 hours in a calendar year may, within 90 days of being elected, decline optional membership with respect to the member's elected position.
     (3) (a) The board shall prescribe the form of the written application required pursuant to subsection (1) and provide written application forms to each employer.
     (b) Each employee or elected official in a position covered under subsection (1) shall obtain the written application form from the employer and complete and return it to the board.
     (c) The written application must be filed with the board:
     (i) for an employee described in subsection (1)(d), within 90 days of the commencement of the employee's employment; and
     (ii) for an employee or elected official described in subsection (1)(a), (1)(b), (1)(c), (1)(e), or (1)(f), within 90 days of the commencement of the employee's or elected official's employment.
     (d) The employer shall retain a copy of the employee's or elected official's written application.
     (4) If the employee or elected official fails to file the written application required under subsection (1) with the board within the time allowed in subsection (3), the employee or elected official waives membership.
     (5) An employee or elected official who declines optional membership may not receive membership service or service credit for the employment for which membership was declined.
     (6) An employee or elected official who declined optional membership but later becomes a member may purchase service credit for the period of time beginning with the date of employment in which membership was declined to the commencement of membership. Purchase of service credit pursuant to this subsection must comply with 19-3-505.
     (7) Except as provided in subsection (2), membership in the retirement system is not optional for an employee or elected official who is already a member. Upon employment in a position for which membership is optional:
     (a) a member who was an active member before the employment remains an active member;
     (b) a member who was an inactive member before the employment becomes an active member; and
     (c) a member who was a retired member before the employment is subject to part 11 of this chapter.
     (8) (a) An employee who declines membership for a position for which membership is optional may not later become a member while still employed with the same employer but in a different optional membership position.
     (b) An elected official who declines membership for a position for which membership is optional may not later become a member if reelected to the same optional membership position.
     (c) If, after a break in service of 30 days or more, an employee who was employed in an optional membership position is reemployed in the same position or is employed in a different position for which membership is optional, the employee shall again choose or decline membership.
     (d) If the break in service is less than 30 days, an employee who declined membership is bound by the employee's original decision to decline membership.
     (9) An employee accepting a position that requires membership must become a member even if the employee previously declined membership and did not have a 30-day break in service.

     History: En. Sec. 50, Ch. 265, L. 1993; amd. Sec. 1, Ch. 208, L. 1997; amd. Sec. 13, Ch. 370, L. 1997; amd. Sec. 51, Ch. 51, L. 1999; amd. Sec. 20, Ch. 58, L. 1999; amd. Sec. 26, Ch. 562, L. 1999; amd. Sec. 20, Ch. 99, L. 2001; amd. Sec. 1, Ch. 285, L. 2001; amd. Sec. 1, Ch. 357, L. 2001; amd. Sec. 1, Ch. 402, L. 2003; amd. Sec. 21, Ch. 429, L. 2003; amd. Sec. 19, Ch. 329, L. 2005; amd. Sec. 1, Ch. 41, L. 2007; amd. Sec. 7, Ch. 128, L. 2007; amd. Sec. 2, Ch. 334, L. 2007; amd. Sec. 12, Ch. 284, L. 2009.

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