161.540 Members' contributions -- Picked-up contributions. - Kentucky Statutes

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161.540 Members' contributions -- Picked-up contributions. (1) (a) Effective July 1, 1988, each individual who first becomes a member before July 1, 2008, shall contribute to the retirement system nine and eight hundred
fifty-five thousandths percent (9.855%) of annual compensation, except that
university employees who participate in the Kentucky Teachers' Retirement
System shall contribute eight and three hundred seventy-five thousandths
percent (8.375%) of annual compensation. (b) Each individual who first becomes a member on or after July 1, 2008, shall contribute to the retirement system ten and eight hundred fifty-five
thousandths percent (10.855%) of annual compensation, except that university
employees who participate in the Kentucky Teachers' Retirement System shall
contribute nine and three hundred seventy-five thousandths percent (9.375%)
of annual compensation. (c) 1. Effective July 1, 2010, members shall, in addition to those contributions
required under paragraphs (a) and (b) of this subsection, make a
contribution to the medical insurance fund established under KRS
161.420(5) according to the following schedule:
a. For each individual who first became a member of the retirement
system before July 1, 2008, a total amount of annual compensation
equal to and effective on: July 1, 2010........................Twenty-five hundredths percent (.25%) July 1, 2011..............................................One-half percent (0.50%) July 1, 2012........................................................One percent (1.0%) July 1, 2013...................................One and one-half percent (1.5%) July 1, 2014.........Two and twenty-five hundredths percent (2.25%) July 1, 2015, and thereafter..............Three percent (3.0%) for a total of three and seventy-five hundredths percent (3.75%) when added to the contributions required under KRS 161.420(5)(a); or b. For each individual who first becomes a member of the retirement
system on or after July 1, 2008, a total amount of annual
compensation equal to and effective on: July 1, 2013..............................................One-half percent (0.50%) July 1, 2014.........One and twenty-five hundredths percent (1.25%) July 1, 2015, and thereafter................Two percent (2.0%) for a total of three and seventy-five hundredths percent (3.75%) when added to thecontributions required under KRS 161.420(5)(a) 2. Notwithstanding subparagraph 1. of this paragraph, members employed
by any employer identified in KRS 161.220(4)(b) or (n) shall contribute,
as a percentage of their total annual compensation, the actuarial
equivalent of the percentage contributed by members under
subparagraph 1. of this paragraph, not to exceed the percentages
established under the schedules set forth in subparagraph 1. of this
paragraph. The actuarial equivalent to be contributed under this
subsection shall be determined by the retirement system's actuary. These
contributions shall be in lieu of those contributions required under
subparagraph 1. of this paragraph. 3. When the medical insurance fund established under KRS 161.420(5)
achieves a sufficient prefunded status as determined by the retirement
system's actuary, the board of trustees shall recommend to the General
Assembly that the contributions required under subparagraphs 1. and 2.
of this paragraph shall, in an actuarially accountable manner, be either
decreased, suspended, or eliminated. (d) Payments authorized by statute that are made to retiring members, who became members of the system before July 1, 2008, for not more than sixty
(60) days of unused accrued annual leave shall be considered as part of the
member's annual compensation, and shall be used only for the member's final
year of active service. The contribution of members shall not exceed these
applicable percentages on annual compensation. When a member retires, if it
is determined that he has made contributions on a salary in excess of the
amount to be included for the purpose of calculating his final average salary,
any excess contribution shall be refunded to him in a lump sum at the time of
the payment of his first retirement allowance. In the event a member is
awarded a court-ordered back salary payment the employer shall deduct and
remit the member contribution on the salary payment, plus interest to be paid
by the employer, to the retirement system unless otherwise specified by the
court order. (2) Each public board, institution, or agency listed in KRS 161.220(4) shall, solely for the purpose of compliance with Section 414(h) of the United States Internal
Revenue Code, pick up the member 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). The picked-up member
contribution shall satisfy all obligations to the retirement system satisfied prior to
August 1, 1982, by the member contribution, and the picked-up member
contribution shall be in lieu of a member contribution. Each employer shall pay
these picked-up member contributions from the same source of funds which is used
to pay earnings to the member. The member shall have no option to receive the
contributed amounts directly instead of having them paid by the employer to the
system. Member contributions picked-up after August 1, 1982, shall be treated for
all purposes of KRS 161.220 to 161.714 in the same manner and to the same extent
as member contributions made prior to August 1, 1982. Effective: July 1, 2010
History: Amended 2010 Ky. Acts ch. 159, sec. 3, effective July 1, 2010; and ch. 164, sec. 6, effective July 1, 2010. -- Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1,
sec. 34, effective June 27, 2008. -- Amended 2008 Ky. Acts ch. 11, sec. 1, effective
April 7, 2008; and ch. 78, sec. 9, effective July 1, 2008. -- Amended 2002 Ky. Acts
ch. 275, sec. 16, effective July 1, 2002. -- Amended 1996 Ky. Acts ch. 359, sec. 8,
effective July 1, 1996. -- Amended 1994 Ky. Acts ch. 369, sec. 12, effective July 1,
1994; and ch. 469, sec. 35, effective July 15, 1994.