67A.510 Members' contributions -- Picked-up employee contributions.
(1)
(2)
Each active member shall contribute a sum equal to not less than ten and one-half
percent (10.5%) nor more than eleven percent (11%) of current salary, to be
determined by the legislative body of the urban-county government. The
commissioner of finance of the government is hereby authorized to deduct such
amount from the salary of each active member in semimonthly installments. This
contribution shall be made as a deduction from salary, notwithstanding that the
salary paid in cash to such member may be reduced thereby below the established
statutory rate. Every member of the fund shall be deemed to consent and agree to
the deduction from salary as herein provided, and shall receipt for his full salary,
and payment to such member of salary less such deduction shall constitute a full
and complete discharge and acquittance of all claims and demand whatsoever for
the services rendered by such member during the period covered by such payment,
except as to the benefits herein provided. After August 1, 1982, employee
contributions shall be picked up by the urban-county government pursuant to
subsection (2) of this section.
The urban-county government 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 so picked up shall be treated as employer contributions
in determining tax treatment under the United States Internal Revenue Code and
KRS 141.010(10). However, the urban-county government shall continue to
withhold federal and state income taxes based upon these contributions and hold
them in a separate account until the Internal Revenue Service or the federal courts
rule that, pursuant to Section 414(h) of the United States Internal Revenue Code,
these contributions shall not be included as gross income of the employee until such
time as the contributions are distributed or made available to the employee. The
picked-up employee contribution shall satisfy all obligations to the retirement fund
satisfied prior to August 1, 1982, by the employee contribution, and the picked-up
employee contribution shall be in lieu of an employee contribution. The urbancounty government 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 urban-county government to the fund. Employee contributions picked
up after August 1, 1982, shall be treated for all purposes of KRS 67A.360 to
67A.690 in the same manner and to the same extent as employee contributions
made prior to August 1, 1982.
Effective: April 11, 1990
History: Amended 1990 Ky. Acts ch. 189, sec. 3, effective July 13, 1990; and ch. 476,
Pt. VII D, sec. 646, effective April 11, 1990. -- Amended 1982 Ky. Acts ch. 166,
sec. 37, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 329, sec. 1, effective
July 15, 1980. -- Created 1974 Ky. Acts ch. 106, sec. 16, effective July 1, 1974.
Legislative Research Commission Note. (7/13/90). This section was amended by two
1990 Acts which do not appear to be in conflict and have been compiled together.
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