KRS 61.675: Employer's administrative duties -- Audit -- Filing of contributions and

reports -- Delinquency in making installment payments.

(1) Except as provided by subsection (5) of this section, the employer shall

prepare the records and, from time to time, shall furnish the information the

system may require in the discharge of its duties. Upon employment of an

employee, the employer shall inform him of his duties and obligations in

connection with the system as a condition of employment.

(2) The system may at any time conduct an audit of the employer in order to

determine if the employer is complying with the provisions of KRS 16.505 to

16.652, 61.610 to 61.705, or 78.510 to 78.852. The system shall have access

to and may examine all books, accounts, reports, correspondence files, and

records of any employer. Every employer, employee, or agency reporting

official of a department or county, as defined in KRS 78.510(3), having records

in his possession or under his control, shall permit access to and examination

of the records upon the request of the system.

(3) (a) Any agency participating in the Kentucky Employees Retirement System

which is not an integral part of the executive branch of state government

shall file the following at the retirement office on or before the tenth day of

the month following the period being reported:

1. The employer and employee contributions required under KRS

61.560, 61.565, and 61.702;

2. The employer contributions and reimbursements for retiree health

insurance premiums required under KRS 61.637; and

3. A record of all contributions to the system on the forms prescribed

by the board.

(b) If the agency fails to file all contributions and reports on or before the

tenth day of the month following the period being reported, interest on the

delinquent contributions at the actuarial rate adopted by the board

compounded annually, but not less than one thousand dollars ($1,000),

may be added to the amount due the system.

(4) If a nonhazardous employer in the Kentucky Employees Retirement System is

delinquent in paying the employer contributions required by KRS 61.565 for a

period of ninety (90) days or more for those contributions payable on or after

July 1, 2021, or if an employer who voluntarily ceases participation in the

Kentucky Employees Retirement System as provided by KRS 61.522(8) elects

to pay off the costs of ceasing participation by installment payments as

provided by KRS 61.522(8)(g) and subsequently is delinquent in making

installment payments for a period of ninety (90) days or more:

(a) Employees of the employer who are participating in the system or who

are continuing to participate in the system after the employer's effective

cessation date as provided by KRS 61.522(8)(d)2. shall not accrue any

additional service credit or benefits in the system through the employer or

ceasing employer until such time as the employer has satisfied the

required employer contributions or installment payments to the system;

(b) The board may file an action in the Franklin Circuit Court to collect any

delinquent employer contributions or installment payments owed by the

employer and to attach so much of the general fund appropriations of the

delinquent employer as is necessary to achieve full compliance with the

provisions of KRS 61.522(8) or 61.565; and

(c) The systems shall notify the Finance and Administration Cabinet, and the

Finance and Administration Cabinet may withhold or intercept from the

employer or ceasing employer a sufficient portion of any appropriated

state funds not yet disbursed to the employer or ceasing employer to

satisfy the required employer contributions or installment payments to the

system.

(5) Employers shall not be required to report any information or pay employer

contributions on any individual serving as a volunteer who is receiving

compensation from the employer equal to or less than a nominal fee as defined

by KRS 61.510 and 78.510 if the compensation paid to the volunteer is

excluded from the definition of creditable compensation as provided by KRS

61.510(13) or 78.510(13).