§88-59  Acquisition of membership service. 
(a)  Under rules as the board may adopt, any member may file with the board a
statement of all service as an employee or other service paid for by the State
or a county rendered prior to the member's last becoming a member that is not
credited to the member, for which the member claims prior service credit, and
also a statement of the services for which the member claims membership service
credit and for which the member agrees to have additional deductions made from
the member's compensation or to make a lump sum payment as described in this
section.



(b)  After the filing of the statement, the
board shall verify the service claimed and determine the service credit
allowable.  Verified prior service shall be credited.  Verified membership
service shall be paid for by the member in any one of the following methods, at
the member's option:



(1)  By deductions from the member's compensation
pursuant 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 payroll
authorization filed by the member for a period not to exceed sixty months shall
remain in effect until the completion of the payroll payments or termination of
employment, whichever is earlier.  The member may elect to have:



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



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



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



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



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



(d)  The contribution rates under section 88-45
shall be reduced by one and eight-tenths per cent for any service being claimed
that was rendered prior to July 1, 1961. [RL 1945, pt of §704; am L 1949, c
269, 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, c
58, §5; am L 2008, c 47, §7]