KRS 156.824: Payment of reinstated employee.

(1) (a) When a certified, equivalent, or unclassified employee has been finally

ordered reinstated without loss of pay, pursuant to the provisions of KRS

156.822, the board shall forward a certified copy of the order to the

Department of Education. The department shall process proper payment to the

employee for the period of suspension, the payment to be made out of the

agency's appropriations. If no funds or insufficient funds are available in the

agency's appropriations, then payment shall be made out of the judg ments

section of the general fund of the biennial state budget.

(b) Gross moneys which are earned by the employee from other sources during

the period of suspension shall set off against the gross sum due the employee,

to the extent that the moneys were ea rned in a number of hours comparable to

the length of time the employee would have worked in the previous job where

dismissal occurred. The commissioner of education shall by regulation

provide an administrative procedure for determining reasonable earnings to be

set off.

(c) All other deductions shall be deducted as required by law or by other state

regulation.

(2) (a) Both the employee's and employer's contributions to the Kentucky Teachers'

Retirement System or the Kentucky Employees Retirement System sh all be

based upon the gross amount due the employee, before set -off or deduction,

except for set -off caused by earnings on which employee and employer

contributions to the Kentucky Teachers' Retirement System or the Kentucky

Employees Retirement System have been paid.

(b) Member and employer contributions paid into the system in which the

employee participated after dismissal shall be transferred to the system in

which the employee participated prior to illegal dismissal. In the event of a

difference in mem ber or employer contribution rates between the retirement

system under which the member was covered prior to dismissal and the

retirement system of participation before reinstatement by the board, the

member and employer shall pay or receive a refund in or der to adjust their

respective contribution to the appropriate rate for the system under which the

employee would have participated if dismissal had not occurred.