{"data":{"id":"us-ky/krs-67a.510","jurisdiction":"us-ky","citation":"KRS 67A.510","heading":"Members' contributions -- Picked-up employee contributions.","body":"(1) (a) Each active member shall contribute a sum equal to not less than ten and one -\nhalf percent (10.5%) nor more than eleven percent (11%) of current salary, to\nbe determined by the legislative body of the urban -county government, except\nthat:\n1. For members who se participation date in the fund is prior to March 14,\n2013, the members shall, effective July 1, 2013, contribute a sum equal\nto twelve percent (12%) of current salary to the fund; and\n2. For members whose participation date in the fund is on or after Ma rch\n14, 2013, the member shall contribute a sum equal to twelve percent\n(12%) of current salary to the fund.\n(b) The commissioner of finance of the government is hereby authorized to\ndeduct such amount provided by this subsection from the salary paid to ea ch\nactive member during any pay period. This contribution shall be made as a\ndeduction from salary, notwithstanding that the salary paid in cash to such\nmember may be reduced thereby below the established statutory rate. Every\nmember of the fund shall be d eemed to consent and agree to the deduction\nfrom salary as herein provided, and shall receipt for his full salary, and\npayment to such member of salary less such deduction shall constitute a full\nand complete discharge and acquittance of all claims and dem and whatsoever\nfor the services rendered by such member during the period covered by such\npayment, except as to the benefits herein provided. After August 1, 1982,\nemployee contributions shall be picked up by the urban -county government\npursuant to subsection (2) of this section.\n(2) The urban -county government shall, solely for the purpose of compliance with\nSection 414(h) of the United States Internal Revenue Code, pick up the employee\ncontributions required by this section for all compensation earned aft er August 1,\n1982, and the contributions so picked up shall be treated as employer contributions\nin determining tax treatment under the United States Internal Revenue Code and\nKRS 141.010. However, the urban -county government shall continue to withhold\nfederal and state income taxes based upon these contributions and hold them in a\nseparate account until the Internal Revenue Service or the federal courts rule that,\npursuant to Section 414(h) of the United States Internal Revenue Code, these\ncontributions shall not be included as gross income of the employee until such time\nas the contributions are distributed or made available to the employee. The picked -\nup employee contribution shall satisfy all obligations to the retirement fund satisfied\nprior to August 1, 1982, by the employee contribution, and the picked -up employee\ncontribution shall be in lieu of an employee contribution. The urban -county\ngovernment shall pay these picked-up employee contributions from the same source\nof funds 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 urban-county government to the fund. Employee contributions picked up after\nAugust 1, 1982, shall be treated for all purp oses of KRS 67A.360 to 67A.690 in the\nsame manner and to the same extent as employee contributions made prior to\nAugust 1, 1982.","path":["KRS Chapter 67A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47379","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:27Z","sha256":"5185ae5edaa11eee1060315fa35e186aac8823ad0146565f08cc1202d56ed34d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-67a.500","next":"us-ky/krs-67a.520"},"notice":"GroundRules: Original legal text. Not legal advice."}