78.615 Deduction of employee contributions -- Service credit -- Employer's
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/ky/78-615A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
report -- Picked-up employee contributions.
(1)Employee contributions shall be deducted each payroll period from the
creditable compensation of each employee of an employer participating in the
system while he or she is classified as regular full-time as defined in KRS
78.510 unless the person did not elect to become a member as provided by
KRS 78.540 or is not eligible to participate in the system as provided by KRS
78.535. After August 1, 1982, employee contributions shall be picked up by the
employer pursuant to KRS 78.610(4).
(a)For employees who are not employed by a school board, service credit
shall be allowed for each month contributions are deducted or picked up
during a fiscal or calendar year, if the employee receives creditable
compensation for an average of one hundred
(100)hours or more of work
per month based on the actual hours worked in a calendar or fiscal year.
If the average number of hours of work is less than one hundred
hours per month, the employee shall be allowed credit only for those
months he or she receives creditable compensation for one hundred
(100)hours of work.
(b)For noncertified employees of school boards, for service prior to July 1,
2000, service credit shall be allowed for each month contributions are
deducted or picked up under the employee's employment contract during
a school year determined by dividing the actual number of contracted
calendar days worked by twenty
(20)and rounded to the nearest whole
month if the employee receives creditable compensation for an average
of eighty
(80)or more hours of work per month based on the employee's
employment contract. The school board shall certify the number of
calendar days worked, the rate of pay, and the hours in a work day for
each employee monthly or annually. The employer shall file at the
retirement office the final monthly report or the annual report for a fiscal
year no later than twenty
(20)days following the completion of the fiscal
year. The retirement system shall impose a penalty on the employer of
one thousand dollars ($1,000) if the information is not submitted by the
date required with an additional two hundred and fifty dollars ($250) for
each additional thirty
(30)day period the information is reported late.
1. If the employee works fewer than the number of contracted calendar
days, the employee shall receive service credit determined by
dividing the actual number of contracted calendar days worked by
twenty
(20)and rounded to the nearest whole month, provided that
the number of hours worked during the period averages eighty
or more hours.
2. If the employee works fewer than the number of contracted calendar
days and the average number of hours worked is less than eighty
(80)per month, then the employee shall receive service credit for
each calendar month in which he or she worked eighty
(80)or more
hours.
3. The retirement system shall refund contributions and service credit
for any period for which the employee is not given credit under this
subsection.
(c)For noncertified employees of school boards, for service on and after July
1, 2000, at the close of each fiscal year, the retirement system shall add
service credit to the account of each employee who made contributions to
his or her account during the year. Employees shall be entitled to a full
year of service credit if their total paid calendar days were not less than
one hundred eighty
(180)calendar days for a regular school or fiscal year.
In the event an employee is paid for less than one hundred eighty
calendar days, the employee may purchase credit according to
administrative regulations promulgated by the system. In no case shall
more than one
(1)year of service be credited for all service performed in
one
(1)fiscal year. Employees who complete their employment contract
prior to the close of a fiscal year and elect to retire prior to the close of a
fiscal year shall have their service credit reduced by eight percent (8%)
for each calendar month that the retirement becomes effective prior to
July 1. Employees who are employed and paid for less than the number
of calendar days required in their normal employment year shall be
entitled to pro rata service credit for the fractional service. This credit shall
be based upon the number of calendar days employed and the number of
calendar days in the employee's annual employment agreement or
normal employment year. Service credit may not exceed the ratio
between the school or fiscal year and the number of months or fraction of
a month the employee is employed during that year.
(d)Notwithstanding paragraph
(c)of this subsection, a noncertified employee
of a school board who retires between July 1, 2000, and August 1, 2001,
may choose to have service earned between July 1, 2000, and August 1,
2001, credited as described in paragraph
(b)of this subsection, if the
employee or retired member notifies the retirement system within one
year of his or her initial retirement. The decision once made shall be
irrevocable.
(2)Employee contributions shall not be deducted from the creditable
compensation of any employee or picked up by the employer while he or she is
seasonal, emergency, temporary, or part-time. No service credit shall be
earned.
(3)Contributions shall not be made or picked up by the employer and no service
credit shall 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; and
(b)A member on approved educational leave, who is receiving seventy-five
percent (75%) or more of full salary, shall receive service credit and shall
pay member contributions in accordance with KRS 78.610, and his or her
employer shall pay employer contributions in accordance with KRS
78.635. 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.
(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 78.640.