KRS § 67A.510 — KY Code / Title IX / Chapter 67A / Section 67A.510
67A.510 Members' contributions -- Picked-up employee contributions
Status: in_force

67A.510 Members' contributions -- Picked-up employee contributions.

(1) (a) 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, except

that:

1. For members whose participation date in the fund is prior to March 14,

2013, the members shall, effective July 1, 2013, contribute a sum equal

to twelve percent (12%) of current salary to the fund; and

2. For members whose participation date in the fund is on or after March

14, 2013, the member shall contribute a sum equal to twelve percent

(12%) of current salary to the fund.

(b) The commissioner of finance of the government is hereby authorized to

deduct such amount provided by this subsection from the salary paid to each

active member during any pay period. 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.

(2) 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. 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 urban-county

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.