SECTION 1. Section 3 of chapter 32 of the Generals Laws as appearing in the 2004 Official Edition, is hereby amended by inserting after subdivision (4A) the following seven subdivisions: -

(4B)  Parochial school or public or private academy.  A member who taught in a parochial school or in a public or private academy may purchase up to 10 years of service credit for that service under subdivisions (4C) to (4H), inclusive.

(4C) The member shall have taught in a school approved by the department of education or the education department of another state while holding an appropriate teaching certificate.

(4D) The member shall before any retirement benefit becomes effective for that member, make contributions into the members retirement fund, for the years of private or parochial school teaching on the same basis as the member would have made contributions had the service been as a state employee or teacher in the Commonwealth, including interest at a rate to be set by the board not to exceed regular interest by more than five percentage points.  The member’s earnings for the years of private or parochial school teaching must be assumed to have been the same as the average salary for teachers in the Commonwealth as determined by the department of education for each of the years when the private or parochial school teaching took place.  Interest shall be computed beginning at the end of the year when those contributions would have been made, if the service had been as a state employee or teacher in the Commonwealth, to the date of payment.  Payment must be made by a single direct payment or annual direct payments to the retirement system in accordance with subdivision (4A).

(4E) The member shall have begun membership before January 1, 1976.

(4F) The member’s last ten years of creditable service before the date of retirement must be as a state employee or teacher in the Commonwealth.

(4G) Upon completion payment of the contributions under subdivision (4D) the member shall be granted service credit for the period of time for which the contributions have been made.  Upon making partial payment of the contributions under subdivision (4D) the member shall be granted service credit on a pro rata basis in accordance with rules adopted by the board.

(4H) Alternative.  In the determination of the retirement benefit under this subdivision, if service credit for private or parochial school teaching is not allowed under (4C) or (4E) additional service credit for private or parochial school teaching is allowed for any member who meets the requirements of subdivisions (4B) and (4F) if the member, before any retirement benefit becomes effective for that member, pays into the member’s retirement fund, by a single direct payment or annual direct payments to the retirement system, an amount equal to the contributions he would have otherwise paid into the retirement system for said period together with regular interest thereon.

Annual payments shall be made in accordance with subdivision (4A).