KRS 78.625: Information furnished by employer -- Filing of contributions,

reimbursements, and reports -- Penalties for delinquency -- Audit of

employer.

(1) Except as provided by subsection (6) of this section, the employer shall

prepare the reporting records necessary for the system to administer the

provisions of KRS 78.510 to 78.852 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 or her of his or her

duties and obligations in connection with the system as a condition of

employment.

(2) The agency reporting official of the county shall file the following at the

retirement office on or before the tenth day of the month following the period

being reported:

(a) The employee and employer contributions required under KRS 78.610

and 78.635;

(b) The employer contributions and reimbursements for retiree health

insurance premiums required under KRS 78.5540; and

(c) A record of all contributions to the system on the forms prescribed by the

systems.

(3) (a) If the agency reporting official fails to file at the retirement office 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.

(b) Delinquent contributions, with interest at the rate adopted by the board

compounded annually, or penalties may be recovered by action in the

Franklin Circuit Court against the county liable or may, at the request of

the board, be deducted from any other moneys payable to the county by

any department or agency of the state.

(4) If an agency is delinquent in the payment of contributions due in accordance

with any of the provisions of KRS 78.510 to 78.852, refunds and retirement

allowance payments to members of this agency may be suspended until the

delinquent contributions, with interest at the rate adopted by the board

compounded annually, or penalties have been paid to the system.

(5) 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 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 county, as defined in KRS

78.510(3), having records in its possession or under its control, shall permit

access to and examination of the records upon the request of the system.

(6) 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).