KRS § 61.543 — KY Code / Title VIII / Chapter 61 / Section 61.543
61.543 Deduction or pick-up of employee contributions -- Service credit -- Educational leave
Status: in_force

61.543 Deduction or pick-up of employee contributions -- Service credit --

Educational leave.

(1) (a) Employee contributions shall be deducted each payroll period from the

creditable compensation of each employee of an agency participating in

the retirement system while he is classified as regular full-time as defined

in KRS 61.510 unless the employee did not elect to become a member as

provided by subsection (2) of KRS 61.525 or is not eligible to participate

in the system as provided by KRS 61.522.

(b) After August 1, 1982, employee contributions shall be picked up by the

employer pursuant to KRS 61.560(4). Service credit will be allowed for

each month the contributions are deducted or picked up during a fiscal or

calendar year, if the member receives creditable compensation for an

average of one hundred (100) hours or more of work per month. If the

average number of hours of work is less than one hundred (100) per

month, the member shall be allowed credit only for those months he

receives creditable compensation for one hundred (100) hours of work.

(2) Employee contributions shall not be deducted from the creditable

compensation of an employee or picked up by the employer while he is

seasonal, emergency, temporary, or part-time. No service credit will be earned.

(3) Contributions shall not be made or picked up by the employer and no service

credit will be earned by a member while on leave except:

(a) A member on military leave shall be entitled to service credit in

accordance with KRS 61.552;

(b) A member on educational leave, approved by the Personnel Cabinet,

who is receiving seventy-five percent (75) or more of full salary, shall

receive service credit and shall pay employee contributions, or the

contributions shall be picked up in accordance with KRS 61.560 and his

employer shall pay employer contributions in accordance with KRS

61.565. If a tuition agreement is broken by the member, the member and

employer contributions paid or picked up during the period of educational

leave shall be refunded; and

(c) An employee on educational leave, approved by the appointing authority,

not to exceed one (1) year, or with additional approval of one (1)

additional year, and not to exceed two (2) years within a five (5) year

period, who is receiving a salary of less than seventy-five percent (75)

of full salary, may elect to retain membership in the system during the

period of leave. If the employee elects to retain membership in the

system, he shall receive service credit by having employee contributions

picked up in accordance with KRS 61.560. His employer shall pay

employer contributions in accordance with KRS 61.565. If a tuition

agreement is broken by the member, the employee and employer

contributions paid or picked up during the period of educational leave

shall be refunded to the contributor and no service credit shall be earned

for the period of leave.

(4) The retirement office, upon detection, shall refund any erroneous employer and

employee contributions made to the retirement system and any interest

credited in accordance with KRS 61.575.

(5) Notwithstanding the provisions of this section and KRS 61.560, employees

engaged pursuant to KRS 148.026 and 56.491 in a regular full-time position as

defined in KRS 61.510(21) prior to January 1, 1993, shall be allowed service

credit for each month the employee received creditable compensation for an

average of one hundred (100) or more hours of work, if the employee pays to

the retirement system the contributions that would have been deducted for the

period of employment. The contributions shall be credited to the member's

account and shall not be picked up pursuant to KRS 61.560(4). The employer

contributions for the period, plus interest calculated at the actuarial rate, shall

be due within thirty (30) days of notice of receipt of payment from the

employee.