{"data":{"id":"us-ky/krs-61.560","jurisdiction":"us-ky","citation":"KRS 61.560","heading":"Employee's contribution -- Rate -- Picked-up employee contributions.","body":"(1) Each employee shall, commencing on August 1, 1986, contribute for each pay\nperiod for which he receives compensation five percent (5%) of his creditable\ncompensation, except that members of the General Assembly, who elect the\nsurvivorship option provided i n KRS 61.635(13), shall each contribute six and six -\ntenths percent (6.6%) of creditable compensation commencing with the payroll\nperiod immediately following his election of the option. Any other provisions of\nKRS 61.515 to 61.705 notwithstanding, any reem ployed retiree, as described in\nKRS 61.637, who became reemployed prior to September 1, 2008, and began\nparticipating in another retirement account shall contribute five percent (5%) of his\ncreditable compensation, or the amount required by KRS 61.592(3) if applicable.\n(2) Each employer shall cause to be deducted from the creditable compensation of each\nemployee for each and every payroll period the contribution payable by each such\nemployee as provided in KRS 61.515 to 61.705.\n(3) The deductions provided f or herein shall be made notwithstanding that the\nminimum compensation provided by law for any employee shall be reduced\nthereby. Every employee shall be deemed to consent and agree to the deductions\nmade as provided herein; and payment of salary or compens ation less such\ndeductions shall be a full and complete discharge of all claims for services rendered\nby such person during the period covered by such payment, except as to any\nbenefits provided by KRS 61.515 to 61.705.\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 compensation 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 gross income of the employee until\nsuch time as the contributions are distributed or made availab le 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 contribu tion. 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 shall 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 61.515 to 61.705 in the same manner and to\nthe same extent as employee contributions made prior to August 1, 1982.\n(5) The provisions of this section shall not apply to individuals who are not eligible for\nmembership as provided by KRS 61.522.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47376","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:15Z","sha256":"35bd9aebc90376afcd2b62d42a3e2eda359d380986a681a7dfa55f101fbd0fe4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.559","next":"us-ky/krs-61.565"},"notice":"GroundRules: Original legal text. Not legal advice."}