§88-59  Acquisition of membership service. (a)  Under rules as the board may adopt, any member may file with the board astatement of all service as an employee or other service paid for by the Stateor a county rendered prior to the member's last becoming a member that is notcredited to the member, for which the member claims prior service credit, andalso a statement of the services for which the member claims membership servicecredit and for which the member agrees to have additional deductions made fromthe member's compensation or to make a lump sum payment as described in thissection.

(b)  After the filing of the statement, theboard shall verify the service claimed and determine the service creditallowable.  Verified prior service shall be credited.  Verified membershipservice shall be paid for by the member in any one of the following methods, atthe member's option:

(1)  By deductions from the member's compensationpursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended,under the employer pick up plan under section 88-46.  An irrevocable payrollauthorization filed by the member for a period not to exceed sixty months shallremain in effect until the completion of the payroll payments or termination ofemployment, whichever is earlier.  The member may elect to have:

(A)  Deductions from the member's compensationof twice the contribution rate provided for in section 88-45 over a periodequal to the period for which membership service credit is allowable not toexceed sixty months; or

(B)  Deductions from the member's compensationof one and one-half times the contribution rate provided for in section 88-45over a period equal to twice the period for which membership service credit isallowable not to exceed sixty months; or

(2)  By lump sum payment of contributions computed atthe contribution rate provided for in section 88-45 applied to the member'smonthly rate of compensation at the time of payment multiplied by the number ofmonths for which membership service credit is allowable; provided that afterJuly 1, 1982, this method shall not be available to any new member with fewerthan five years of membership service exclusive of any previous serviceacquired under paragraph (1).

The deductions from compensation or lump sum paymentshall be paid to the system and shall be credited to the member's individualaccount and become part of the member's accumulated contributions.

(c)  Membership service credit, in addition toany other service credited to the member, shall be allowed for the period forwhich the deductions from compensation or lump sum payment have been made asdescribed in this section.

(d)  The contribution rates under section 88-45shall be reduced by one and eight-tenths per cent for any service being claimedthat was rendered prior to July 1, 1961. [RL 1945, pt of §704; am L 1949, c269, pt of §1; am L 1951, c 110, §1(c); RL 1955, §6-35; am L 1961, c 181, §3;HRS §88-59; am L 1969, c 110, pt of §1; am L 1972, c 129, §1; am L 1982, c 165,§2(12); gen ch 1985; am L 1989, c 100, §1; am L 1997, c 213, §2; am L 2005, c58, §5; am L 2008, c 47, §7]