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78.610
Employee's contribution -- Rate -- Deduction -- Picked-up employee
contributions.
(1)
(2)
(3)
(4)
(5)
Each employee shall, commencing on August 1, 1990, contribute, for each pay
period for which he receives compensation, five percent (5%) of his creditable
compensation unless he did not elect membership pursuant to KRS 61.545(3).
The agency reporting official of a participating county shall cause to be deducted
from the "creditable compensation" of each employee for each and every payroll
period subsequent to the date the county participated in the system the contribution
payable by the member as provided in KRS 78.510 to 78.852. The agency reporting
official shall promptly pay the deducted employee contributions to the system in
accordance with KRS 78.625.
The deductions provided for in subsection (2) of this section shall be made
notwithstanding that the minimum compensation provided by law for any employee
shall be reduced thereby. Every employee shall be deemed to consent and agree to
the deductions made as provided in subsection (2) of this section; and payment of
salary or compensation less the deductions shall be a full and complete discharge of
all claims for services rendered by the person during the period covered by the
payment, except as to any benefits provided by KRS 78.510 to 78.852.
Each employer shall, solely for the purpose of compliance with Section 414(h) of
the United States Internal Revenue Code, pick up the employee contributions
required by this section for all compensation earned after August 1, 1982, and the
contributions picked up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code and KRS 141.010(10).
These contributions shall not be included as gross income of the employee until the
contributions are distributed or made available to the employee. The picked-up
employee contribution shall satisfy all obligations to the retirement system satisfied
prior to August 1, 1982, by the employee contribution, and the picked-up employee
contribution shall be in lieu of an employee contribution. Each employer shall pay
these picked-up employee contributions from the same source of funds which is
used to pay earnings to the employee. The employee shall have no option to receive
the contributed amounts directly instead of having them paid by the employer to the
system. Employee contributions picked up after August 1, 1982, shall be treated for
all purposes of KRS 78.510 to 78.852 in the same manner and to the same extent as
employee contributions made prior to August 1, 1982.
The provisions of this section shall not apply to individuals who are not eligible for
membership as provided by KRS 61.522.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 28, sec. 10, effective June 24, 2015. -- Amended
1992 Ky. Acts ch. 240, sec. 56, effective July 14, 1992. -- Amended 1990 Ky. Acts
ch. 221, sec. 2, effective July 13, 1990; ch. 222, sec. 7, effective July 13, 1990; and
ch. 476, Pt. VII D, sec. 647, effective April 11, 1990. -- Amended 1986 Ky. Acts ch.
90, sec. 26, effective July 15, 1986; ch. 176, sec. 2, effective July 15, 1986; and ch.
293, sec. 5, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 166, sec. 3,
effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 186, sec. 19, effective July
15, 1980. -- Amended 1978 Ky. Acts ch. 384, sec. 557, effective June 17, 1978. --
Amended 1976 Ky. Acts ch. 321, sec. 40. -- Amended 1972 Ky. Acts ch. 116, sec.
66. -- Amended 1966 Ky. Acts ch. 34, sec. 5. -- Amended 1964 Ky. Acts ch. 49, sec.
6. -- Amended 1962 Ky. Acts ch. 31, sec. 8. -- Created 1958 Ky. Acts ch. 167, sec.
11.
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