(A) Pension benefits shall accrue and be paid upon the terms and conditions and in accordance with the Group Annuity Contract # 795GAC, as amended, between the town and the John Hancock Mutual Life Insurance Company for employees enrolled in that plan.
(B) Armed Service Credit.
(1) Any active municipal employee who served for a period of six months or more of continuous 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 Rhode Island Public Laws, 1946, may purchase credit for such service up to a maximum of four years: provided, that any member who served at least six months or more in any one year shall be allowed to purchase one year for such service and any member who has served a fraction of less than six months in his total service shall be allowed to purchase six months' credit for such service.
(2) The cost to purchase these credits shall be ten percent of the member's first years' earnings as a municipal employee multiplied by the number of years and fraction thereof of such armed service up to a maximum of four years.
(3) Municipal employees on active service with the town must purchase this credit not later than July 18, 1985. Employees hired after July 18. 1984, shall have one year from the date of employment to purchase service credits.
(4) Purchase of service credits in the town pension system will not be used to reduce requirements for active service with the town prescribed under the presently established normal retirement system or by collective bargaining agreements.
(C) The provisions of this section shall apply only to employees who are members of the John Hancock Group Annuity Contract #795GAC, as amended.
(‘73 Code, § 7-61) (Ord. passed 7-1-83; Am. Ord. passed 7-18-84; Am. Ord. 2011-4, passed 4-4-11)