KRS 61.557: Service credit -- United States employment service.

(1) Inasmuch as the takeover of the Kentucky State Employment Service by the federal

government, through its United States Employment Service and War Manpower

Commission, was recognized by both federal and state governments as a temporary

measure during the wa r emergency, and the employment service was, in fact,

returned to the state government at the close of the emergency period, the

employees of the service are recognized as employees of the Commonwealth for the

purposes of KRS 61.510 to 61.692 during the pe riod of control by the federal

government, in the same manner as if they had been employed in another

department of the government of the Commonwealth during that period.

(2) If a parted employer rejoins a department as a result of the cancellation of a contract

or lease arrangement, thereby causing each employee thereof to again become an

employee as defined in KRS 61.510(5), the system may negotiate with the publicly

held corporation or other similar organizations for payment for the years of service

credit under the system for all employees working on the date the contract or other

lease arrangement is canceled in order to avoid an impairment in the retirement

benefits of the employees, if any payment accepted by the system for the service is

consistent w ith the provisions of KRS 61.552(7)(b) and (8). No payment made

pursuant to this section shall be picked up by the employer, as described in KRS

61.560(4).