78.615 Deduction of employee contributions -- Service credit -- Employer's report -- Picked-up employee contributions. - Kentucky Statutes

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78.615 Deduction of employee contributions -- Service credit -- Employer's report - - Picked-up employee contributions. (1) Employee contributions shall be deducted each payroll period from the creditable compensation of each employee of an agency participating in the system while he 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 61.545(3) or by KRS 78.540(2).
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 (100) hours per month, the employee
shall be allowed credit only for those months he 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 (80) 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 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 (180) 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 (1) year of his 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 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 61.555; and (b) A member on educational leave who meets the criteria established by the state Personnel Cabinet for 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 employer
shall pay employer contributions or the contributions shall be picked up in
accordance with KRS 61.565. 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. Effective: July 15, 2002
History: Amended 2002 Ky. Acts ch. 52, sec. 20, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 151, sec. 1, effective June 21, 2001. -- Amended 2000 Ky. Acts
ch. 299, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 105, sec. 23,
effective July 15, 1998; and ch. 154, sec. 73, effective July 15, 1998. -- Amended
1996 Ky. Acts ch. 167, sec. 25, effective July 15, 1996. -- Amended 1994 Ky. Acts
ch. 485, sec. 29, effective July 15, 1994.