{"data":{"id":"us-ky/krs-78.610","jurisdiction":"us-ky","citation":"KRS 78.610","heading":"Employee's contribution -- Rate -- Deduction -- Picked-up employee","body":"contributions.\n(1) Each  employee shall contribute, for each pay period for which he or she\nreceives compensation:\n(a) 1. Five percent (5%) of his or her creditable compensation if the\nemployee is participating in a nonhazardous position; or\n2. Eight percent (8%) of his or her creditable compensation if the\nemployee is participating in a hazardous position; and\n(b) The  amount specified by KRS  78.5536(3)(b) for employees who begin\nparticipating on or after September 1, 2008.\n(2) The  agency reporting official of a participating county shall cause to be\ndeducted from the \"creditable compensation\" of each employee for each and\nevery payroll period subsequent to the date the county participated in the\nsystem the contribution payable by the member  as provided in KRS  78.510 to\n78.852. The  agency  reporting official shall promptly pay  the deducted\nemployee contributions to the system in accordance with KRS 78.625.\n(3) The  deductions provided for in subsection (2) of this section shall be made\nnotwithstanding that the minimum  compensation provided by law for any\nemployee  shall be reduced thereby. Every employee shall be deemed  to\nconsent and agree to the deductions made as provided in subsection (2) of this\nsection; and payment of salary or compensation less the deductions shall be a\nfull and complete discharge of all claims for services rendered by the person\nduring the period covered by the payment, except as to any benefits provided\nby KRS 78.510 to 78.852.\n(4) Each employer shall, solely for the purpose of compliance with Section 414(h)\nof  the United States Internal Revenue  Code,  pick up  the employee\ncontributions required by this section for all compensation earned after August\n1, 1982, and  the contributions picked up shall be treated as employer\ncontributions in determining tax treatment under the United States Internal\nRevenue  Code and KRS  141.010. These contributions shall not be included as\ngross income of the employee until the contributions are distributed or made\navailable to the employee. The picked-up employee contribution shall satisfy all\nobligations to the retirement system satisfied prior to August 1, 1982, by the\nemployee contribution, and the picked-up employee contribution shall be in lieu\nof an  employee  contribution. Each  employer shall pay these picked-up\nemployee  contributions from the same  source of funds which is used to pay\nearnings to the employee. The employee shall have no option to receive the\ncontributed amounts directly instead of having them paid by the employer to\nthe system. Employee contributions picked up after August 1, 1982, shall be\ntreated for all purposes of KRS  78.510 to 78.852 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\nfor membership as provided by KRS 78.535.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50793","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:39Z","sha256":"fc6cfc845e0c13d5e191175362fbbd2003b916d9f735aee9cf3862778efbfa2d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.608","next":"us-ky/krs-78.615"},"notice":"GroundRules: Original legal text. Not legal advice."}