16.545 Contributions of members -- Picked-up employee contributions.

347 words·~2 min read·/ky/chapter-16/16-545

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Except for members over age fifty-five

(55)on July 1, 1958, who shall not be

required to contribute, each member shall, commencing on July 1, 1998, contribute

for each pay period for which he receives compensation, eight percent (8%) of his

creditable compensation.

(2)The employer shall cause to be deducted from the compensation of each member

for each and every payroll period subsequent to July 1, 1958, the contributions

payable by such member as provided in KRS 16.510 to 16.652.

(3)Every member shall be deemed to consent to deductions made as provided herein;

and the payment of salary or compensation less such deduction 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 16.510

to 16.652.

(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 16.510 to 16.652 in the same manner and to

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