2014 Kentucky Revised Statutes
CHAPTER 161 - SCHOOL EMPLOYEES -- TEACHERS' RETIREMENT AND TENURE
161.540 Members' contributions -- Picked-up contributions.
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<![CDATA[161.540 Members' contributions -- Picked-up contributions.
(1)
(a)
(b)
(c)
Effective July 1, 1988, each individual who first becomes a member
before July 1, 2008, shall contribute to the retirement system nine and
eight hundred fifty-five thousandths percent (9.855%) of annual
compensation, except that university employees who participate in the
Kentucky Teachers' Retirement System shall contribute eight and three
hundred seventy-five thousandths percent (8.375%) of annual
compensation.
Each individual who first becomes a member on or after July 1, 2008,
shall contribute to the retirement system ten and eight hundred fifty-five
thousandths percent (10.855%) of annual compensation, except that
university employees who participate in the Kentucky Teachers'
Retirement System shall contribute nine and three hundred seventy-five
thousandths percent (9.375%) of annual compensation.
1.
Effective July 1, 2010, members shall, in addition to those
contributions required under paragraphs (a) and (b) of this
subsection, make a contribution to the medical insurance fund
established under KRS 161.420(5) according to the following
schedule:
a.
For each individual who first became a member of the
retirement system before July 1, 2008, a total amount of
annual compensation equal to and effective on:
July 1, 2010........................Twenty-five hundredths
percent (.25%)
July 1, 2011..............................................One-half percent
(0.50%)
July
1,
2012........................................................One
percent (1.0%)
July 1, 2013...................................One and one-half
percent (1.5%)
July 1, 2014.........Two and twenty-five hundredths percent
(2.25%)
July 1, 2015,
and thereafter..............Three percent (3.0%) for a total of
three and
seventy-five hundredths percent (3.75%)
when added to the contributions required
b.
under KRS 161.420(5)(a); or
For each individual who first becomes a member of the
retirement system on or after July 1, 2008, a total amount of
annual compensation equal to and effective on:
July 1, 2013..............................................One-half percent
(0.50%)
July 1, 2014.........One and twenty-five hundredths percent
(1.25%)
July 1, 2015,
and thereafter................Two percent (2.0%) for a total of
three and
seventy-five hundredths percent (3.75%)
when added to the contributions required
(2)
under KRS 161.420(5)(a)
2.
Notwithstanding subparagraph 1. of this paragraph, members
employed by any employer identified in KRS 161.220(4)(b) or (n)
shall contribute, as a percentage of their total annual compensation,
the actuarial equivalent of the percentage contributed by members
under subparagraph 1. of this paragraph, not to exceed the
percentages established under the schedules set forth in
subparagraph 1. of this paragraph. The actuarial equivalent to be
contributed under this subsection shall be determined by the
retirement system's actuary. These contributions shall be in lieu of
those contributions required under subparagraph 1. of this
paragraph.
3.
When the medical insurance fund established under KRS
161.420(5) achieves a sufficient prefunded status as determined by
the retirement system's actuary, the board of trustees shall
recommend to the General Assembly that the contributions required
under subparagraphs 1. and 2. of this paragraph shall, in an
actuarially accountable manner, be either decreased, suspended, or
eliminated.
(d) Payments authorized by statute that are made to retiring members, who
became members of the system before July 1, 2008, for not more than
sixty (60) days of unused accrued annual leave shall be considered as
part of the member's annual compensation, and shall be used only for the
member's final year of active service. The contribution of members shall
not exceed these applicable percentages on annual compensation. When
a member retires, if it is determined that he has made contributions on a
salary in excess of the amount to be included for the purpose of
calculating his final average salary, any excess contribution shall be
refunded to him in a lump sum at the time of the payment of his first
retirement allowance. In the event a member is awarded a court-ordered
back salary payment the employer shall deduct and remit the member
contribution on the salary payment, plus interest to be paid by the
employer, to the retirement system unless otherwise specified by the
court order.
Each public board, institution, or agency listed in KRS 161.220(4) shall, solely
for the purpose of compliance with Section 414(h) of the United States Internal
Revenue Code, pick up the member 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). The
picked-up member contribution shall satisfy all obligations to the retirement
system satisfied prior to August 1, 1982, by the member contribution, and the
picked-up member contribution shall be in lieu of a member contribution. Each
employer shall pay these picked-up member contributions from the same
source of funds which is used to pay earnings to the member. The member
shall have no option to receive the contributed amounts directly instead of
having them paid by the employer to the system. Member contributions
picked-up after August 1, 1982, shall be treated for all purposes of KRS
161.220 to 161.714 in the same manner and to the same extent as member
contributions made prior to August 1, 1982.
Effective:July 1, 2010
History: Amended 2010 Ky. Acts ch. 159, sec. 3, effective July 1, 2010; and ch.
164, sec. 6, effective July 1, 2010. -- Amended 2008 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 34, effective June 27, 2008. -- Amended 2008 Ky. Acts ch. 11, sec. 1,
effective April 7, 2008; and ch. 78, sec. 9, effective July 1, 2008. -- Amended
2002 Ky. Acts ch. 275, sec. 16, effective July 1, 2002. -- Amended 1996 Ky.
Acts ch. 359, sec. 8, effective July 1, 1996. -- Amended 1994 Ky. Acts ch. 369,
sec. 12, effective July 1, 1994; and ch. 469, sec. 35, effective July 15, 1994.
Amended 1992 Ky. Acts ch. 192, sec. 7, effective July 1, 1992. -- Amended
1990 Ky. Acts ch. 476, Pts. V and VII D, secs. 514, 648, effective April 11, 1990.
-- Amended 1988 Ky. Acts ch. 240, sec. 3, effective July 15, 1988; ch. 260, sec.
3, effective July 15, 1988; and ch. 363, sec. 10, effective July 1, 1988. -Amended 1984 Ky. Acts ch. 253, sec. 15, effective July 1, 1984; and ch. 302,
sec. 2, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 166, sec. 4,
effective July 15, 1982; and ch. 326, sec. 7, effective July 1, 1982. -- Amended
1980 Ky. Acts ch. 188, sec. 120, effective July 15, 1980; and ch. 206, sec. 5,
effective July 1, 1980. -- Amended 1978 Ky. Acts ch. 152, sec. 8, effective
March 28, 1978. -- Amended 1974 Ky. Acts ch. 395, sec. 11, effective July 1,
1974. -- Amended 1970 Ky. Acts ch. 168, sec. 2. -- Amended 1964 Ky. Acts ch.
43, sec. 11. -- Amended 1960 Ky. Acts ch. 44, sec. 10. -- Amended 1954 Ky.
Acts ch. 196, sec. 3. -- Amended 1946 Ky. Acts ch. 111, sec. 3. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec.
4506b-36.
Legislative Research Commission Note (7/1/2010). This section was amended
by 2010 Ky. Acts chs. 159 and 164, which do not appear to be in conflict and
have been codified together.
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