KRS § 61.560 — KY Code / Title VIII / Chapter 61 / Section 61.560
61.560 Employee's contribution -- Rate -- Picked-up employee contributions
Status: in_force

61.560 Employee's contribution -- Rate -- Picked-up employee contributions.

(1) Each employee shall, commencing on August 1, 1986, contribute for each pay

period for which he receives compensation five percent (5%) of his creditable

compensation, except that members of the General Assembly, who elect the

survivorship option provided in KRS 61.635(13), shall each contribute six and six-

tenths percent (6.6%) of creditable compensation commencing with the payroll

period immediately following his election of the option. Any other provisions of

KRS 61.515 to 61.705 notwithstanding, any reemployed retiree, as described in

KRS 61.637, who became reemployed prior to September 1, 2008, and began

participating in another retirement account shall contribute five percent (5%) of his

creditable compensation, or the amount required by KRS 61.592(3) if applicable.

(2) Each employer shall cause to be deducted from the creditable compensation of each

employee for each and every payroll period the contribution payable by each such

employee as provided in KRS 61.515 to 61.705.

(3) The deductions provided for herein 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 herein; and payment of salary or compensation less such

deductions shall be a full and complete discharge of all claims for services rendered

by such person during the period covered by such payment, except as to any

benefits provided by KRS 61.515 to 61.705.

(4) 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 so picked up shall be treated as employer contributions in determining

tax treatment under the United States Internal Revenue Code and KRS 141.010.

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

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 61.515 to 61.705 in the same manner and to

the same extent as employee contributions made prior to August 1, 1982.

(5) The provisions of this section shall not apply to individuals who are not eligible for

membership as provided by KRS 61.522.