It is enacted by the General Assembly as follows:

SECTION 1. Sections 16-16-5 and 16-16-7.1 of the General Laws in Chapter 16-16 entitled "TEACHERS' RETIREMENT" are hereby amended to read as follows:

16-16-5. Service creditable -- Periods of illness or leaves of absence -- Substitute teachers. -- (a) In calculating "service", "prior service", or "total service" as defined in section 16-16-1, every teacher shall be given credit for a year of service for each year in which he or she shall have served as a teacher; provided, that any teacher who through illness or leave of absence without pay does not serve a full school year may receive credit therefor by making contribution to the system upon his or her return to teaching for at least one year, the amount he or she would have contributed to the retirement system plus regular interest, compounded annually up to date of payment based upon his or her expected compensation but for his leave of absence in any case of illness, sabbatical, educational leave, or any other reason. Credit for leaves of absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, every teacher who had been required to resign for maternity reasons may receive credit therefor by making contribution to the system upon her return to teaching the amount she would have contributed to the retirement system, with interest, based upon her expected compensation but for her absence due to maternity reasons. Credit for such absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, that the credit is purchased on or before December 31, 1990.

(b) The retirement board shall fix and determine the time when and the conditions under which the payments shall be made.

(c) Any teacher who serves or who has served during a school year at least three-quarters (3/4) of the number of days that the public schools are required by law to be in session during the year shall be given credit for a year of service for that year. In determining the number of days served by a substitute teacher the total number of days served in any public school of any city or town in the state may be combined for any one school year. Any such teacher shall be entitled to "prior service" credit for service prior to July 1, 1949, provided the teacher shall have been in service during the school year 1949-1950. The teacher shall be entitled to service credit for any year subsequent to July 1, 1949, by making contribution to the retirement system the amount he would have contributed to the retirement system, had he or she been a member, plus regular interest compounded annually to date of payment, payable at a time or in such manner as may be provided by the rules of the retirement board.

(d) Any teacher employed in at least a half (1/2) program including a job share program shall remain a contributing member and shall receive credit for that part-time service.

{ADD (e) In computing service or in computing compensation, the retirement board shall credit no more than one year of service on account of all service in one calendar year. ADD}

{ADD (f) Notwithstanding any other section of law, no member of the retirement system shall be permitted to purchase service credit for any portion of a year for which he or she is already receiving service credit in this retirement system. ADD}

16-16-7.1. Armed service credit. -- (a) Any active teacher who served on active duty in the armed service of the United States or in the merchant marine service of the United States as defined in section 2 of chapter 1721 of the public laws, 1946, may purchase credit for that service up to a maximum of four (4) years; provided that he or she has received an honorable discharge; {DEL provided, that any teacher who served any fraction of a year less than six (6) months shall be allowed to purchase six (6) months of service for each fraction and for any fraction of a year six (6) months or greater shall be permitted to purchase one year of service; DEL} provided further, that any teacher on an official leave of absence for illness or injury shall be eligible to purchase military credits as defined herein while on that leave of absence.

(b) The cost to purchase these credits shall be ten percent (10%) of the members' first year's earnings as a teacher as defined in section 16-16-1 of this title, multiplied by the number of years and fraction thereof of the armed service up to a maximum of four (4) years.

(c) There will be no interest charge provided the teacher makes that purchase during his or her first five (5) years of membership in the retirement system, but will be charged regular interest to date of purchase from date of enrollment into membership, if purchased after completing five (5) years of membership; provided, however, any teacher who was in the retirement system prior to July 1, 1980, would not be charged interest whenever he or she purchases the armed services credit.

SECTION 2. Sections 36-9-25 and 36-9-31 of the General Laws in Chapter 36-9 entitled "RETIREMENT SYSTEM -- MEMBERSHIP AND SERVICE CREDITS" are hereby amended to read as follows:

36-9-25. Standard for year's service credits. -- {ADD (a) ADD} The retirement board shall fix and determine, by appropriate rules and regulations, how much service in any year is equivalent to a year of service, but in computing that service or in computing the compensation it shall credit no period of more than a month's duration during which a member was absent without pay, nor shall more than one year of service be credited on account of all service in one calendar year.

{ADD (b) Notwithstanding any other section of law, no member of the retirement system shall be permitted to purchase service credit for any portion of a year for which he or she is already receiving service credit in this retirement system. ADD}

36-9-31. Armed service credit. -- (a) Any active member of the retirement system, who served on active duty in the armed service of the United States or in the Merchant Marine service of the United States as defined in section 2 of chapter 1721 of the public laws, 1946, may purchase credit for such service up to a maximum of four (4) years provided that he or she has received an honorable discharge{DEL ; provided, that any member who served any fraction of a year less than six (6) months shall be allowed to purchase six (6) months of service for each such fraction and for any fraction of a year six (6) months or greater shall be permitted to purchase one year of service DEL}. Provided further that any employee on an official leave of absence for illness or injury shall be eligible to purchase military credits as defined herein while on such leave of absence.

(b) The cost to purchase these credits shall be ten percent (10%) of the member's first year's earnings as a state employee as defined in chapter 9 of this title, multiplied by the number of years and fraction thereof of such armed service up to a maximum of four (4) years.

(c) There will be no interest charge provided the member makes that purchase during his or her first five (5) years of membership in the retirement system, but will be charged regular interest to date of purchase from date of enrollment into membership, if purchased after completing five (5) years of membership; provided, however, any member who was in the retirement system prior to July 1, 1980, would not be charged interest whenever he or she purchases the armed services credit.

SECTION 3. Sections 45-21-14 and 45-21-53 of the General Laws in Chapter 45-21 entitled "RETIREMENT OF MUNICIPAL EMPLOYEES" are hereby amended to read as follows:

45-21-14. Computation of years of service. -- {ADD (a) ADD} The retirement board shall fix and determine, by appropriate rules and regulations, how much service in any year is equivalent to a year of service, but in computing the service or in computing the compensation it shall credit no period of more than a month's duration during which a member was absent without pay, nor shall more than one year of service be credited on account of all service in one calendar year.

{ADD (b) Notwithstanding any other section of law, no member of the retirement system shall be permitted to purchase service credit for any portion of a year for which he or she is already receiving service credit in this retirement system. ADD}

45-21-53. Armed service credit. -- (a) Any active municipal employee who served on active duty in the armed service of the United States or in the merchant marine service of the United States as defined in section 2 of chapter 1721 of the public laws, 1946, may purchase credit for that service up to a maximum of four (4) years , provided that he or she has received an honorable discharge; {DEL provided, that any member who served any fraction of a year less than six (6) months shall be allowed to purchase six (6) months of service for each fraction and for any fraction of a year six (6) months or greater shall be permitted to purchase one (1) year of service; DEL} provided, further, that any employee on an official leave of absence for illness or injury shall be eligible to purchase military credits as defined herein while on that leave of absence.

(b) The cost to purchase these credits shall be ten percent (10%) of the member's first year's earnings as a municipal employee, as defined in this chapter multiplied by the number of years and fraction thereof of such armed service up to a maximum for four (4) years.

(c) There will be no interest charge provided the member makes that purchase during his or her first five (5) years of membership in the retirement system, but will be charged regular interest to date of purchase from date of enrollment into membership, if purchased after completing five (5) years of membership; provided, however, any member who was in the retirement system prior to July 1, 1980, would not be charged interest whenever he or she purchases the armed services credit.

SECTION 4. Severability. If any provision to this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act, which can be given effect without the invalid provisions or application, and to this end, the provisions of this act are declared to be severable.

SECTION 5. This act shall take effect upon passage.