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

Download pdf

Loading PDF...

16.545 Contributions of members -- Picked-up employee contributions. (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(10).
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. Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 300, sec. 4, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 476, Pt. VII D, sec. 641, effective April 11, 1990. -- Amended
1986 Ky. Acts ch. 90, sec. 3, effective July 15, 1986. -- Amended 1982 Ky. Acts
ch. 166, sec. 2, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 321, sec. 40. -
- Amended 1972 Ky. Acts ch. 116, sec. 6. -- Amended 1968 Ky. Acts ch. 25, sec. 2. -
- Amended 1964 Ky. Acts ch. 91, sec. 4. -- Created 1958 Ky. Acts ch. 94, sec. 9.