{"data":{"id":"us-ky/krs-161.597","jurisdiction":"us-ky","citation":"KRS 161.597","heading":"Installment payments for purchase of service credit by active contributing","body":"members.\n(1) A member in active contributing status may purchase any service credit which the\nmember is authorized to purchase by making installment payments in lieu o f a\nlump-sum payment.\n(2) To initiate an installment payment plan, a member shall make a written request to\nthe retirement system for an estimate to purchase service credit by making\ninstallment payments.\n(3) To qualify for installment payments, the total cost of the service purchase, including\nany chargeable interest, shall exceed one thousand dollars ($1,000).\n(4) Installment payments shall be at least fifty dollars ($50) per month and shall be\nmade for a period of time which is not less than twelve (12) months nor more than\nsixty (60) months. Interest at eight percent (8%) per annum, unless the board\nspecifies in an administrative regulation a different interest rate, shall be charged on\nall installment payment purchases of service credit that are purchas able at less than\nfull actuarial cost. Interest shall be assigned to the guarantee fund.\n(5) Installment payments shall be made on a monthly basis by electronic fund transfer.\nThe payments shall be considered accumulated contributions and shall not be\npicked up as provided in KRS 161.560, except that subject to approval by the\nInternal Revenue Service and only as permitted by the Internal Revenue Code,\ninstallment payments shall be made on a tax-deferred basis.\n(6) A member may elect to terminate electronic fund transfers at any time and purchase\nthe remaining service credit by lump -sum payment. A member on a leave of\nabsence may continue to make installment payments. Termination of employment\nin a covered position shall terminate installment payments. If th e member is later\nemployed by a different employer in a covered position, the member may request a\nnew estimate and reinstate installment payments. A member that misses two (2)\nconsecutive installment payments shall be in default. A member in default shall\nreceive a refund of all prior installment payments and the member's service credit\nshall be reduced accordingly. A member in default may not reinstate installment\npayments for twelve (12) months from the date the member was in default.\n(7) If a member die s before completing scheduled installment payments, the named\nbeneficiary of the member's retirement account may pay the remaining balance due\nby a lump-sum payment within thirty (30) days of the death of the member.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51628","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"a48c0b3e97679ca8e943cc3e2153ed87adae01cab41a972271cfe7691b35eebd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.595","next":"us-ky/krs-161.600"},"notice":"GroundRules: Original legal text. Not legal advice."}