KRS 18A.210: Payment of premiums.

The premiums may be paid by the policyholder:

(1) Wholly from funds contributed by the insured public employee, by payroll

deduction or otherwise;

(2) Wholly from funds contributed by the public employer; or

(3) Partly from each.

No payment of premium by the public employer shall constitute compensation t o an

insured public employee for the purposes of any statute fixing or limiting the

compensation of such an employee; any premium or other expense incurred by the public

employer shall be considered a proper cost of administration.