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16.545 Contributions of members -- Picked-up employee contributions.

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16.545 Contributions of members -- Picked-up employee contributions. (1) Except for members over age fifty-five (55) on July 1, 1958, who shall not be required to contribute, each member shall, commencing on July 1, 1998, contribute <br>for each pay period for which he receives compensation, eight percent (8%) of his <br>creditable compensation. (2) The employer shall cause to be deducted from the compensation of each member for each and every payroll period subsequent to July 1, 1958, the contributions <br>payable by such member as provided in KRS 16.510 to 16.652. (3) Every member shall be deemed to consent to deductions made as provided herein; and the payment of salary or compensation less such deduction shall be a full and <br>complete discharge of all claims for services rendered by such person during the <br>period covered by such payment, except as to any benefits provided by KRS 16.510 <br>to 16.652. (4) Each employer shall, solely for the purpose of compliance with Section 414(h) of the United States Internal Revenue Code, pick up the employee contributions <br>required by this section for all compensation earned after August 1, 1982, and the <br>contributions so picked up shall be treated as employer contributions in determining <br>tax treatment under the United States Internal Revenue Code and KRS 141.010(10). <br>These contributions shall not be included as gross income of the employee until <br>such time as the contributions are distributed or made available to the employee. <br>The picked-up employee contribution shall satisfy all obligations to the retirement <br>system satisfied prior to August 1, 1982, by the employee contribution, and the <br>picked-up employee contribution shall be in lieu of an employee contribution. Each <br>employer shall pay these picked-up employee contributions from the same source of <br>funds which is used to pay earnings to the employee. The employee shall have no <br>option to receive the contributed amounts directly instead of having them paid by <br>the employer to the system. Employee contributions picked up after August 1, 1982, <br>shall be treated for all purposes of KRS 16.510 to 16.652 in the same manner and to <br>the same extent as employee contributions made prior to August 1, 1982. Effective: July 15, 1998 <br>History: Amended 1998 Ky. Acts ch. 300, sec. 4, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 476, Pt. VII D, sec. 641, effective April 11, 1990. -- Amended <br>1986 Ky. Acts ch. 90, sec. 3, effective July 15, 1986. -- Amended 1982 Ky. Acts <br>ch. 166, sec. 2, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 321, sec. 40. -<br>- Amended 1972 Ky. Acts ch. 116, sec. 6. -- Amended 1968 Ky. Acts ch. 25, sec. 2. -<br>- Amended 1964 Ky. Acts ch. 91, sec. 4. -- Created 1958 Ky. Acts ch. 94, sec. 9.