Service Purchase Types

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The following is a listing of most service purchase types and the information required to verify the period of service. If you are eligible to purchase service and wish to initiate, make sure you have the correct form completed. You can download or print the necessary form from the Employee section of our forms library.
 
Purchase Types without Service Requirements
Purchase Type Description Verification Required
Recontribution of Refunded Service A member currently participating in one of the state administered retirement systems who has taken a refund of retirement contributions for previous employment may regain the service lost by paying the amount of contributions withdrawn plus interest calculated from the time of withdrawal.  The purchase does not reinstate the original participation date from that service. Note: The member must work for at least six months to validate the purchase. Information should be on file at KRS.
Summer Months A member currently participating in one of the state administered retirement systems who was contracted by a local school board, university, community action agency, or school for the deaf or blind to work 9, 10, or 11 months may purchase up to three (3) additional months to complete a full year. Information should be on file at KRS.
Omitted Service If a member was entitled to service credit but was not reported to KRS, the member may obtain service by paying the employee contributions on the period of omitted service. If employee contributions are not received within six (6) months of notification by KRS, a participating employee may obtain the service by paying the employee contributions plus any accumulated interest. Service credit will not be awarded to the member’s account until KRS has also received the employer contributions. Form 4225 or Personnel Forms
Hazardous Conversion Members participating in hazardous positions may pay the cost to convert eligible non-hazardous service to hazardous service. The service credit must be in a position that was reported to KRS under nonhazardous coverage, but has since been approved for hazardous duty coverage by the Board of Trustees. The agency where the nonhazardous service was earned must complete a Form 4150, Certification of Employment in a Hazardous Position, in order for the member to convert the service. Form 4150
"Free" Military Service you service are entitled to receive if you left participating employment (either terminated or was placed on leave), entered the Armed Forces of the United States (within 3 months), and subsequently returned to participating employment within two years of receiving an honorable discharge.
If your employment was in a nonparticipating status, such as seasonal or temporary, the service must be purchased in order for the member to be eligible to receive free military service credit. If you contributed, but subsequently took a refund for the period immediately prior to the military service, the refund of contributions must be repaid in order for you to qualify for free military service credit. Service credit and creditable compensation, as provided in 38 U.S.C. sec. 4318, shall be given for a period not to exceed 6 years.
Form DD-214 and Personnel Forms
Vested Purchase Types
In order to be vested, a member under the age of 65 must have at least 60 months of service credit while a member over the age of 65 must have at least 48 months of service.
Purchase Type Description Verification Required
Delayed Service A member may purchase service with an agency that did not participate in KRS but has since joined. Delayed Service (also referred to as past service) is service worked prior to the date the agency began participating or in the case of a member who initially rejected membership, service worked from the member’s hire date through his or her election to participate in KRS. Form 4225
Active Duty Military A member may purchase all periods of active duty service with a branch of the Armed Forces. This purchase may require an honorable or general discharge from service. A copy of your DD-Form 214 for each period of active duty.
Historical note: Prior to August 1, 2000, a member could purchase up to 4 years of active duty military service. Effective August 1, 2000, the statute provided that all periods of active duty service may be purchased.
National Guard/Reserves A member may purchase one (1) month of credit for every six (6) months served. Most recent Annual Statement of Points.
Maternity/Authorized Sick Leave Without Pay/FMLA Leave A member may purchase service credit for official maternity leave without pay, approved sick leave without pay, or approved leave without pay under the Family Medical Leave Act (FMLA) that occurred while working for a participating agency. Form 4225 or Personnel Forms or a letter from the agency verifying the period of leave
Seasonal, Temporary, Emergency, Interim or Part-time A member may purchase service for time served in a seasonal, probationary, temporary, interim, emergency, or part-time position (more than 100 hours per month) that occurred with a participating agency. Form 4225 or Personnel Forms
State University Service A member may purchase service for certain types of employment with Kentucky’s state sponsored universities provided they did not participate in a defined benefit plan during employment and the position held would have qualified as a regular fulltime position had the university been participating. This purchase is limited to the University of Kentucky and the University of Louisville since other state-sponsored universities participate in KERS. Form 4120
Historical note: From April 1, 2003 until June 20, 2005, Kentucky Revised Statute 61.552 (8) provided that university service may be purchased if the member did not participate in either a defined benefit plan or a defined contribution plan. Effective June 20, 2005, statute was amended to allow the purchase if the university service was covered under a defined contribution plan.
Approved Educational Leave A member may purchase service credit for approved educational leave. Personnel Forms or Letter from agency verifying the period of leave.
Federal Service A member may purchase service worked as a full time federal employee provided the member withdrew all funds or did not participate in the Federal Retirement System. Form 4115
Out of State Service (Non-Hazardous) A member may purchase up to 10 years of service credit for full-time out-of-state public service. To qualify, the out-of-state service must have been credited in a state or locally administered defined benefit retirement plan, other than one for teachers. The member must provide verification that he or she has received a refund or is not eligible for a retirement benefit from the period of out-of-state service. Form 4140
Out of State Service (Hazardous) A member may purchase up to 10 years of service credit for full-time out-of-state public service if the position would be determined as hazardous duty. To qualify, the out-of-state service must have been credited in a state or locally administered defined benefit retirement plan, other than one for teachers. The member must show that he or she has received a refund or is not eligible for a retirement benefit from the period of out of state service. The member must also submit a copy of the job description for his or her out of state public service. Form 4140 and a copy of the former job description.
Vocational/Technical School Service A member may purchase service worked in a non-teaching position with a Vocational/Technical School in the state of Kentucky that averages at least 80 hours per month on a calendar or fiscal year basis. Form 4225 or Personnel Forms
Community Action Agency A member may purchase service for regular full-time employment with a Community Action Agency created under Kentucky Revised Statute 273.405 to 273.453 if that service was not covered by a state-administered retirement system. Personnel Forms or Letter from agency verifying the period of service.
Mental-Health Mental Retardation Service A member may purchase service for employment in a regional community mental health and mental retardation services program, organized and operated under the provisions of Kentucky Revised Statute 210.370 and 210.480, which does not participate in a state-administered retirement system. Personnel Forms or Letter from agency verifying the period of service.
Approved Leave to Work for Work-Related Labor Organization A member may purchase service credit for periods of approved leave to work for a work-related labor organization provided that the agency approving the leave subsequently participated in CERS. Letter from the IRS or U.S. Department of Labor stating that the purchase is allowable under federal restrictions.
Area Development District/Business Development Corporation A member may purchase service for employment with an Area Development District (ADD) created pursuant to Kentucky Revised Statute 147A.050 or a business development corporation created pursuant to Kentucky Revised Statute 155.001 to 155.230 which does not participate in KRS. Letter from the IRS or U.S. Department of Labor stating that the purchase is allowable under federal restrictions.
Urban–County Government Service A hazardous member may purchase service credit with an urban-county government. To qualify, the employment must have been considered regular full-time and qualify for hazardous duty coverage under Kentucky Revised Statute 61.592. The member must show that he or she has received a refund or is not eligible for a retirement benefit for the period of urban-county government service. Form 4131
Non-Qualified Service (Air Time, Ghost Time) Members currently participating and who have service with KRS prior to August 1, 2002, may purchase up to five (5) years of service once they have 15 years of total service in a state administered retirement system. At least five (5) of the 15 years required for this purchase type must be in KERS, CERS, or SPRS. The Non-Qualified Service may not be used for benefit purposes until the member has accrued 20 years of service, excluding the Non-Qualified Service. Even if you began participation after September 1, 2008, you may still be eligible to buy Non-Qualified Service, provided there is some other service you have purchased that was earned prior to August 2002. Information should be on file at KRS