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How service credits work: current service, sick leave conversions and purchasing service

Kentucky Public Pensions Authority · August 17, 2026

Summary

KPPA said total service combines current service, sick leave service (up to 12 months in some systems) and purchased service; purchased service must meet full-time standards per KRS 61.510 and 78.510 and most purchases after Aug. 1, 2004 do not count toward insurance eligibility.

The Presenter explained a member’s total years of service are the sum of current service, sick leave service and purchased service. Current service accrues when wages and contributions are reported; sick leave service for Tier 2 KERS and SPRS members may be converted (up to 12 months) and CERS employers may limit credited sick leave to six months unless the member purchases the additional months.

Purchased service was described as having eligibility constraints: purchases must be full-time positions consistent with KRS 61.510 and 78.510, cannot duplicate credit in another defined-benefit plan, and most purchases after Aug. 1, 2004 do not count toward KPPA insurance eligibility except for specified exceptions (omitted service, hazardous conversion, refund buybacks). The Presenter advised members to verify employer participation and to use KPPA calculators for cost estimates.

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