105 KAR 1:260. Purchase of out-of-state service credit.
TO: KRS 61.552(17), (18), 26 U.S.C. 415
AUTHORITY: KRS 61.645(9)(e)
FUNCTION, AND CONFORMITY: KRS 61.552(17) and (18) provide for the purchase of
out-of-state service credit for members of the Kentucky Retirement Systems.
This administrative regulation sets out the requirements and forms for
obtaining credit for this service.
1. Each employee wishing to purchase service credit for out-of-state public
service under KRS 61.552(17) and (18) shall request a copy of Form 4140,
Certification of Out-of-state Service.
2. (1) The employee shall mail the form to his former employer and retirement
plan for completion.
If the employee wishes to purchase hazardous service in CERS, he shall also
obtain a copy of the description of his duties in the out-of-state position
from his former employer.
The employee shall be responsible for obtaining the information requested on
the form regarding the period of out-of-state service.
3. (1) The completed form and job description shall be submitted to the
The retirement system shall determine how much service is eligible for purchase
under the statute.
4. Service credit shall be eligible for purchase as hazardous duty if the
position is the same as or substantially similar to positions for which
hazardous duty credit has been approved under KRS 61.592.
5. (1) The retirement system shall notify the employee of the cost of the
service which qualifies for purchase.
The cost shall be determined as a delayed contribution payment except that the
employee shall pay 100 percent of the total.
The cost shall be based on the employee's age rounded to the nearest year and
the employee's estimated current rate of pay, final rate of pay or final
compensation, whichever is higher.
Payment by the employee shall be due on the date shown on the notification
unless the employee participates in an installment purchase plan as provided
under KRS 61.552(16) and 105 KAR 1:150.
6. If the employee's actual rate of pay or final compensation is higher than
estimated and results in a difference of $100 or more in the cost of the
service, the employee shall be notified and shall pay the additional cost for
the service within thirty (30) days of the date on the notification.
7. (1) If the retirement system determines that the service is not eligible for
purchase, the retirement system shall notify the employee of the reasons.
If additional information is needed to make the determination, the employee
shall be responsible for obtaining the additional information.
8. Incorporation by Reference. (1) "Form 4140, Certification of
Out-of-state Service (Rev. 7/00)" required by the administrative
regulation is incorporated by reference.
This material may be inspected, copied or obtained, subject to applicable
copyright law, at the Kentucky Retirement Systems, Perimeter Park West, 1260
Louisville Road, Frankfort, Kentucky 40601-6124, Monday through Friday, 8 a.m.
to 4:30 p.m. (19 Ky.R. 1017; Am. 1339; eff. 12-9-92; 21 Ky.R. 1531; eff.
2-8-95; 27 Ky.R. 1053; 1446; eff. 12-21-2000.)