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78.610 Employee's contribution -- Rate -- Deduction -- Picked-up employee
contributions.
(1)
(2)
(3)
(4)
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.
Effective:July 14, 1992
History: 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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