Any employee who leaves the service of an employer to enter in the service of another employer maintaining a retirement plan as defined in § 798 of this title shall automatically become a member of that system, wherefore he shall not be entitled to reimbursement of the contributions accumulated in his favor in the retirement system from which he withdrew. The joint contributions and the credits for accumulated services in his favor, as recognized to the employee by the system to which he belonged, shall be transferred to the new system as soon as the employee starts contributing to same. Said system shall credit to the employee the services transferred from the former system or systems. Provided, That in case the joint contributions are not sufficient to credit him in the new system, the time to which he was entitled under the former system, in accordance with the rules and regulations in force, the employee may contribute the amount necessary to cover the difference in the individual contribution and in that case, the employer shall contribute the difference in the employer’s contribution, or in its default there shall only be credited the period of services covering the contributions transferred. Likewise, any excess in the joint contributions, after having been credited to the employee, the period transferred shall be returned by the system receiving the contributions. The excess in the individual contribution shall be returned to the employee and the excess in the employer’s contribution to the retirement system to which the participant belonged.
The retirement system from which the employee was transferred shall notify, at the time of the transfer, to the new system any debt contracted by the employee in which his contributions are serving as guaranty, provided that when the employee becomes permanently separated from the service for any cause, without having fully paid a loan, his individual contributions shall answer in the first place for the obligations he may have contracted with the respective system and which remain unpaid. Should he have loans in more than one retirement system his individual contributions shall answer in the same order in which he contracted these obligations.
The joint contributions and credits for accumulated services in a retirement system or systems in favor of any employee who on the date in which this act takes effect is contributing to another system, shall be transferred to the latter system in accordance with the provisions of §§ 797-806 of this title.
Any retirement system that on the date this act takes effect is making annual transfers to pay the pension of any employee retired from another system, shall transfer the life value of said pension to the system under which the employee retired. Upon making such transfer this latter system shall continue paying the pension of the employee retired in accordance with the annuity computed for each one of the former systems.
History —June 10, 1953, No. 59, p. 154, § 3; May 4, 1955, No. 22, p. 82; May 18, 1959, No. 9, p. 42, § 2; June 26, 1965, No. 96, p. 234; May 30, 1969, No. 17, p. 28, § 1, eff. July 1, 1969.