{"data":{"id":"us-ky/krs-65.155","jurisdiction":"us-ky","citation":"KRS 65.155","heading":"Pick up of employee contributions.","body":"(1) Each local government or local government agency which has a pension plan which\nis qualified under Section 401(a) of the Internal Revenue Code shall, solely for the\npurpose of compliance with Section 414(h) of the United States Internal Revenue\nCode, pick up the employee contributions made to the respective retirement system\npursuant to KRS 79.080, 90.400, 90.410, 95.290, 95.580, 95.627, 95.768, 95.769,\n95.867, or 96.180 for all compensation earned after August 1, 1982, or after\nqualification pursuant to Section 401(a) of the Internal Revenue Code, whichever is\nlater, and all contributions so picked up shall be treated as employer contributions in\ndetermining tax treatment under the United States Internal Revenue Code and KRS\n141.010. However, each local gov ernment or local government agency shall\ncontinue to withhold federal and state income taxes based upon these contributions\nand hold them in a separate account until the Internal Revenue Service or the\nfederal courts rule that, pursuant to Section 414(h) o f the United States Internal\nRevenue Code, these contributions shall not be included as gross income of the\nemployee until such time as the contributions are distributed or made available to\nthe employee. The picked -up employee contribution shall satisfy a ll obligations to\nthe retirement fund satisfied prior to August 1, 1982, or later date, as the case may\nbe, by the employee contribution, and the picked -up employee contribution shall be\nin lieu of an employee contribution. The local governments or local g overnment\nagencies 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 local government or local government agency to the fund. Employee\ncontributions picked up after August 1, 1982, shall be treated for all purposes of\nKRS 79.080, 90.400, 90.410, 95.290, 95.580, 95.627, 95.768, 95.769, 95.867, or\n96.180 in the same manner and to the same extent as employee contributions made\nprior to August 1, 1982, or later date of pick up, as the case may be.\n(2) The pick up of employee contributions by the employer shall not be construed to\nreduce the final salary or the average salary u pon which the employee retirement\nbenefit may be based in any of the retirement systems covered by this section.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47377","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"8203c012628855559f82fb13df9f582abefac5c83b0bffa46cc10426a4d2aef4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.154","next":"us-ky/krs-65.156"},"notice":"GroundRules: Original legal text. Not legal advice."}