78.610 Employee's contribution -- Rate -- Deduction -- Picked-up employee
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/ky/78-610A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
contributions.
(1)Each employee shall contribute, for each pay period for which he or she
receives compensation:
(a)1. Five percent (5%) of his or her creditable compensation if the
employee is participating in a nonhazardous position; or
2. Eight percent (8%) of his or her creditable compensation if the
employee is participating in a hazardous position; and
(b)The amount specified by KRS 78.5536(3)(b) for employees who begin
participating on or after September 1, 2008.
(2)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.
(3)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.
(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 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 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.
(5)The provisions of this section shall not apply to individuals who are not eligible
for membership as provided by KRS 78.535.