{"data":{"id":"us-ky/krs-78.615","jurisdiction":"us-ky","citation":"KRS 78.615","heading":"Deduction of employee  contributions -- Service credit -- Employer's","body":"report -- Picked-up employee contributions.\n(1) Employee  contributions shall be deducted each  payroll period from the\ncreditable compensation of each employee of an employer participating in the\nsystem while he or she is classified as regular full-time as defined in KRS\n78.510 unless the person did not elect to become  a member  as provided by\nKRS  78.540 or is not eligible to participate in the system as provided by KRS\n78.535. After August 1, 1982, employee contributions shall be picked up by the\nemployer pursuant to KRS 78.610(4).\n(a) For employees who are not employed by a school board, service credit\nshall be allowed for each month contributions are deducted or picked up\nduring a fiscal or calendar year, if the employee receives creditable\ncompensation for an average of one hundred (100) hours or more of work\nper month based on the actual hours worked in a calendar or fiscal year.\nIf the average number of hours of work is less than one hundred (100)\nhours per month, the employee shall be allowed credit only for those\nmonths  he or she receives creditable compensation for one hundred\n(100) hours of work.\n(b) For noncertified employees of school boards, for service prior to July 1,\n2000, service credit shall be allowed for each month contributions are\ndeducted or picked up under the employee's employment contract during\na school year determined by dividing the actual number of contracted\ncalendar days worked by twenty (20) and rounded to the nearest whole\nmonth  if the employee receives creditable compensation for an average\nof eighty (80) or more hours of work per month based on the employee's\nemployment  contract. The  school board shall certify the number  of\ncalendar days worked, the rate of pay, and the hours in a work day for\neach  employee  monthly or annually. The  employer shall file at the\nretirement office the final monthly report or the annual report for a fiscal\nyear no later than twenty (20) days following the completion of the fiscal\nyear. The retirement system shall impose a penalty on the employer of\none thousand dollars ($1,000) if the information is not submitted by the\ndate required with an additional two hundred and fifty dollars ($250) for\neach additional thirty (30) day period the information is reported late.\n1. If the employee works fewer than the number of contracted calendar\ndays, the employee  shall receive service credit determined by\ndividing the actual number of contracted calendar days worked by\ntwenty (20) and rounded to the nearest whole month, provided that\nthe number of hours worked during the period averages eighty (80)\nor more hours.\n2. If the employee works fewer than the number of contracted calendar\ndays and the average number of hours worked is less than eighty\n(80) per month, then the employee shall receive service credit for\neach calendar month in which he or she worked eighty (80) or more\nhours.\n3. The  retirement system shall refund contributions and service credit\nfor any period for which the employee is not given credit under this\nsubsection.\n(c) For noncertified employees of school boards, for service on and after July\n1, 2000, at the close of each fiscal year, the retirement system shall add\nservice credit to the account of each employee who made contributions to\nhis or her account during the year. Employees shall be entitled to a full\nyear of service credit if their total paid calendar days were not less than\none hundred eighty (180) calendar days for a regular school or fiscal year.\nIn the event an employee is paid for less than one hundred eighty (180)\ncalendar  days, the employee  may  purchase  credit according to\nadministrative regulations promulgated by the system. In no case shall\nmore than one (1) year of service be credited for all service performed in\none (1) fiscal year. Employees who complete their employment contract\nprior to the close of a fiscal year and elect to retire prior to the close of a\nfiscal year shall have their service credit reduced by eight percent (8%)\nfor each calendar month that the retirement becomes  effective prior to\nJuly 1. Employees who are employed and paid for less than the number\nof calendar days required in their normal employment  year shall be\nentitled to pro rata service credit for the fractional service. This credit shall\nbe based upon the number of calendar days employed and the number of\ncalendar days in the employee's annual employment  agreement or\nnormal  employment  year. Service credit may  not exceed  the ratio\nbetween the school or fiscal year and the number of months or fraction of\na month the employee is employed during that year.\n(d) Notwithstanding paragraph (c) of this subsection, a noncertified employee\nof a school board who retires between July 1, 2000, and August 1, 2001,\nmay  choose to have service earned between July 1, 2000, and August 1,\n2001, credited as described in paragraph (b) of this subsection, if the\nemployee or retired member  notifies the retirement system within one (1)\nyear of his or her initial retirement. The decision once made  shall be\nirrevocable.\n(2) Employee  contributions shall not  be  deducted  from  the  creditable\ncompensation of any employee or picked up by the employer while he or she is\nseasonal, emergency, temporary, or part-time. No  service credit shall be\nearned.\n(3) Contributions shall not be made or picked up by the employer and no service\ncredit shall be earned by a member  while on leave except:\n(a) A  member  on  military leave shall be  entitled to service credit in\naccordance with KRS 61.552; and\n(b) A member  on approved educational leave, who is receiving seventy-five\npercent (75%) or more of full salary, shall receive service credit and shall\npay member  contributions in accordance with KRS  78.610, and his or her\nemployer  shall pay employer contributions in accordance with KRS\n78.635. If a tuition agreement is broken by the member, the member  and\nemployer contributions paid or picked up during the period of educational\nleave shall be refunded.\n(4) The retirement office, upon detection, shall refund any erroneous employer and\nemployee  contributions made  to the retirement system and  any interest\ncredited in accordance with KRS 78.640.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50794","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:39Z","sha256":"2342276eb462d880bb313b0813fd419012ebeeab5b994f6bb1ab68f61f031adc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.610","next":"us-ky/krs-78.616"},"notice":"GroundRules: Original legal text. Not legal advice."}