Sec. 1. 5 MRSA §17707, sub-§4, ¶D is enacted to read:

D.__If an employee or member who has not contributed during that employee's or member's CETA employment or who has withdrawn that employee's or member's contributions later elects, under section 17761, to purchase that employee's or member's CETA time for past creditable service before any retirement benefit becomes effective for that member, that employee or member must pay into the Members' Contribution Fund, by a single direct payment or annual direct payments to the retirement system, an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service.__Annual payments must be made in accordance with section 17701, subsection 4.__Additional amounts paid under this paragraph become a part of the employee's or member's accumulated contributions.__If any retirement benefit becomes effective before the completion of the payment under this paragraph, the employee or member is entitled to service credit for a portion of the additional creditable service in the same proportion that the total amount of payments actually made, plus regular interest on those payments to the date the retirement benefit becomes effective, bears to the actuarial equivalent of the total portion of the retirement benefit based on the additional creditable service.

Sec. 2. 5 MRSA §17761, sub-§3 is enacted to read:

3.__Service credit allowed.__Service credit for the period of CETA employment occurring before July 1, 1979 must be granted to any person who satisfies the following conditions:

A.__The person was a CETA employee;

B.__The person within 90 days of termination of CETA employment became a non-CETA employee of the employer; and

C.__The employee contribution required by section 17707, subsection 4, paragraph D has been paid.