Sec. 1. 5 MRSA §17855, first ¶, as amended by PL 1997, c. 769, §18, is further amended to read:

If Except as provided in section 17855-A, if any recipient of a service retirement benefit is restored to service and if the total of the recipient's monthly retirement benefit for any year and the recipient's total earnable compensation for that year exceed the recipient's average final compensation at retirement, increased or decreased by the same percentage adjustments as have been received under section 17806, the excess must be deducted from the service retirement benefit payments during the next calendar year, except that beginning January 1, 1999 and thereafter 1/2 the excess must be deducted from the service retirement benefit payments during the next calendar year.

Sec. 2. 5 MRSA §17855-A is enacted to read:

§17855-A.__Restoration to service

A recipient of a service retirement benefit may be restored to service and continue to receive payment of the service retirement benefit as determined under section 17851-A or 17852.__If a recipient continues to receive the service retirement benefit, no service credit may be awarded for service under this section.

Sec. 3. 20-A MRSA §12722, sub-§3, as amended by PL 1999, c. 614, §1, is further amended to read:

3. Maine State Retirement System members. An eligible person who becomes a participant in the defined contribution plan offered by the board of trustees and who is a member of the Maine State Retirement System at the time participation in the defined contribution plan begins may apply for a refund of accumulated contributions from the Maine State Retirement System pursuant to Title 5, section 17705, except that any such person who has less than the number of years of creditable service required to be eligible for a Maine State Retirement System benefit as of the date specified in the notification in subsection 2, paragraph A or the date of hire pursuant to subsection 2, paragraph B shall apply for a refund of accumulated contributions. Participation in the defined contribution plan offered by the board of trustees pursuant to this section is considered a termination of service for purposes of Title 5, section 17705 as of the date specified in the notification in subsection 2, paragraph A or the date of hire pursuant to subsection 2, paragraph B, except that, if an application is made for refund of accumulated contributions under an election pursuant to subsection 2, paragraph A, payment must