Except as provided for in § 3-12C-1405.1, if a retired member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership must be administered pursuant to this section.
The member's monthly retirement benefit is reduced by fifteen percent and the COLA is eliminated throughout the period that the member reenters covered employment. The reduction and elimination must cease if the member again terminates covered employment. The reduction and elimination do not apply if the member retired as a Class B public safety member and subsequently reenters covered employment as a Class A member.
The contributions required of the member must be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation program established pursuant to chapter 3-13. The contributions are governed by § 457 of the Internal Revenue Code. The contributions required of the member's employer unit must be deposited into the fund created by this chapter, but with no association or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.
The provisions of this section do not apply to a Class D member who reenters covered employment.