67A.510 Members' contributions -- Picked-up employee contributions.
523 words·~2 min read·
/ky/chapter-67a/67a-510A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Each active member shall contribute a sum equal to not less than ten and one-
half percent (10.5%) nor more than eleven percent (11%) of current salary, to
be determined by the legislative body of the urban-county government, except
that:
1. For members whose participation date in the fund is prior to March 14,
2013, the members shall, effective July 1, 2013, contribute a sum equal
to twelve percent (12%) of current salary to the fund; and
2. For members whose participation date in the fund is on or after March
14, 2013, the member shall contribute a sum equal to twelve percent
(12%) of current salary to the fund.
(b)The commissioner of finance of the government is hereby authorized to
deduct such amount provided by this subsection from the salary paid to each
active member during any pay period. This contribution shall be made as a
deduction from salary, notwithstanding that the salary paid in cash to such
member may be reduced thereby below the established statutory rate. Every
member of the fund shall be deemed to consent and agree to the deduction
from salary as herein provided, and shall receipt for his full salary, and
payment to such member of salary less such deduction shall constitute a full
and complete discharge and acquittance of all claims and demand whatsoever
for the services rendered by such member during the period covered by such
payment, except as to the benefits herein provided. After August 1, 1982,
employee contributions shall be picked up by the urban-county government
pursuant to subsection
(2)of this section.
(2)The urban-county government 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. However, the urban-county government shall continue to withhold
federal and state income taxes based upon these contributions and hold them in a
separate account until the Internal Revenue Service or the federal courts rule that,
pursuant to Section 414(h) of the United States Internal Revenue Code, 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 fund satisfied
prior to August 1, 1982, by the employee contribution, and the picked-up employee
contribution shall be in lieu of an employee contribution. The urban-county
government 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 urban-county government to the fund. Employee contributions picked up after
August 1, 1982, shall be treated for all purposes of KRS 67A.360 to 67A.690 in the
same manner and to the same extent as employee contributions made prior to August 1, 1982.