§88-59 Acquisition of membership service. (a) Under rules as the board may adopt, any member may file with the system 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:
The actuarial cost of the membership service to be credited shall be determined by the actuary for the system based on the age of the member in full years as of the date the claim for service credit is made, the investment yield rate assumption in effect as of the date the claim for service credit is made, the retirement age eligibility requirements and retirement allowance provisions applicable to the member, and other actuarial assumptions adopted by the board in effect as of the date the claim for service credit is made.
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; provided that payment shall commence within one year after the system notifies the member that the service claimed has been verified and that service credit is allowable; provided further that, for a member who becomes a member after June 30, 2016:
(d) The contribution rates under section 88-45 shall be reduced by one and eight-tenths per cent for any service being claimed prior to July 1, 2020, 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; am L 2015, c 86, §4; am L 2018, c 70, §2]