{"data":{"id":"us-ky/krs-16.545","jurisdiction":"us-ky","citation":"KRS 16.545","heading":"Contributions of members -- Picked-up employee contributions.","body":"(1) Except for members over age fifty -five (55) on July 1, 1958, who shall not be\nrequired to contribute, each member shall, commencing on July 1, 1998, contribute\nfor each pay period for which he receives compensation, eight percent (8%) of his\ncreditable compensation.\n(2) The employer shall cause to be deducted from the compensation of each member\nfor each and every payroll period subsequent to July 1, 1958, the contributions\npayable by such member as provided in KRS 16.510 to 16.652.\n(3) Every member shall b e deemed to consent to deductions made as provided herein;\nand the payment of salary or compensation less such deduction shall be a full and\ncomplete discharge of all claims for services rendered by such person during the\nperiod covered by such payment, except as to any benefits provided by KRS 16.510\nto 16.652.\n(4) Each employer shall, solely for the purpose of compliance with Section 414(h) of\nthe United States Internal Revenue Code, pick up the employee contributions\nrequired by this section for all comp ensation earned after August 1, 1982, and the\ncontributions so picked up shall be treated as employer contributions in determining\ntax treatment under the United States Internal Revenue Code and KRS 141.010.\nThese contributions shall not be included as gro ss income of the employee until\nsuch time as the contributions are distributed or made available to the employee.\nThe picked-up employee contribution shall satisfy all obligations to the retirement\nsystem satisfied prior to August 1, 1982, by the employee contribution, and the\npicked-up employee contribution shall be in lieu of an employee contribution. Each\nemployer shall pay these picked-up employee contributions from the same source of\nfunds which is used to pay earnings to the employee. The employee sha ll have no\noption to receive the contributed amounts directly instead of having them paid by\nthe employer to the system. Employee contributions picked up after August 1, 1982,\nshall be treated for all purposes of KRS 16.510 to 16.652 in the same manner and to\nthe same extent as employee contributions made prior to August 1, 1982.","path":["KRS Chapter 16"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47372","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:37Z","sha256":"cb2e6a801f17d6dd439246110e85ac70273585cb8c7ccdf428572a11d63a69ec","source_id":"us-ky","stale":false,"prev":"us-ky/krs-16.543","next":"us-ky/krs-16.550"},"notice":"GroundRules: Original legal text. Not legal advice."}