61.543 Deduction or pick-up of employee contributions -- Service credit --
626 words·~3 min read·
/ky/61-543A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Educational leave.
(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
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.