It is enacted by the General Assembly as follows:

SECTION 1. Section 36-9-20 of the General Laws in Chapter 36-9 entitled "Retirement System--Membership and Service Credits" is hereby amended to read as follows:

36-9-20. Credit for service as a teacher, municipal employee or legislator. -- (a) Any state employee who shall have rendered service as a teacher as defined under the provisions of chapters 16 and 17 of title 16, shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member of this system for that period. Any state employee who shall have been a contributing member of the municipal system as defined under the provisions of chapter 21 of title 45 shall be given credit for the service for the various purposes of this system, provided the member's contributions are transferred to this system. {ADD All contributions made by the member shall be transferred in toto to this system for the periods of service. ADD} In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system a lump sum amount equal to the amount he would have contributed had he or she been a member during that period, plus interest as determined by the retirement board. Any state employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, provided that such employee shall have met the definitional requirements of "employee" as stated in section 45-21-2(5) provided the member pays to the retirement system a lump sum amount equal to the full actuarial value of the credit as certified by the retirement board; Provided, however, that any state employee who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, to a maximum period of four (4) years, provided the member pays to the retirement system a lump sum amount equal to, ten percent (10%) of his or her entry level salary in the state retirement system multiplied by the number of years in which he or she seeks membership service credit prior to December 31, 1986; provided further, however, that nothing in this section shall be deemed to allow the purchase of four (4) years of service for credit in more than one retirement system.

(b) The retirement board shall fix and determine rules and regulations to govern the provisions of this section.

SECTION 2. Section 16-16-8 of the General Laws in Chapter 16-16 entitled "Teachers' Retirement" is hereby amended to read as follows:

16-16-8. Credit for service as a state or municipal employee. -- Any member who shall have rendered service as a state employee as defined by the provisions of chapter 17 of this title and chapters 8 to 10 inclusive of title 36 or who shall have rendered service as an employee of a participating municipality, as defined by chapter 21 of title 45, shall be entitled to credit for his or her service for the various purposes of this system, provided the member shall have been a contributing member for that period. All contributions made by the member shall be transferred {ADD in toto ADD} to this system for the periods of service. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system a lump sum payment equal to the amount he would have contributed had he or she been a member during the period, plus interest as defined hereinabove. The retirement board shall fix and determine such rules and regulations as are needed to govern the provision of this section.

SECTION 3. Section 45-21-12.1 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows:

45-21-12.1. Credit for service as a teacher or state employee. -- Any member who shall have rendered service as a teacher, as defined under the provisions of chapters 16 and 17 of title 16, or as a state employee, as defined by the provisions of chapters 8 to 10, inclusive of title 36, shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member for that period. All contributions made by the member for those periods of service shall be transferred {ADD in toto ADD} to this system. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made, may be granted, provided the member pays to the retirement system a lump sum payment equal to the amount had he or she been a member during that period, plus interest as defined hereinabove. The retirement board shall fix and determine such rules and regulations as are needed to govern the provisions of this section.

SECTION 4. Severability. -- If any provision of 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 provision 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.