61.543 Deduction or pick up of employee contributions -- Service credit -- Educational leave.
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61.543 Deduction or pick up of employee contributions -- Service credit --
Educational leave.
(1) Employee contributions shall be deducted each payroll period from the creditable
compensation of each employee of an agency participating in the retirement system <br>while he is classified as regular full-time as defined in KRS 61.510 unless the <br>employee did not elect to become a member as provided by subsection (2) of KRS <br>61.525, or unless the employee did not elect membership pursuant to KRS <br>61.545(3). After August 1, 1982, employee contributions shall be picked up by the <br>employer pursuant to KRS 61.560(4). Service credit will be allowed for each month <br>the contributions are deducted or picked up during a fiscal or calendar year, if the <br>member receives creditable compensation for an average of one hundred (100) <br>hours or more of work per month. If the average number of hours of work is less <br>than one hundred (100) per month, the member shall be allowed credit only for <br>those months he receives creditable compensation for one hundred (100) hours of <br>work.
(2) Employee contributions shall not be deducted from the creditable compensation of
an employee or picked up by the employer while he is seasonal, emergency, <br>temporary, or part-time. No service credit will be earned.
(3) Contributions shall not be made or picked up by the employer and no service credit
will be earned by a member while on leave except: <br>(a) A member on military leave shall be entitled to service credit in accordance
with KRS 61.555;
(b) A member on educational leave, approved by the Personnel Cabinet, who is
receiving seventy-five percent (75%) or more of full salary, shall receive <br>service credit and shall pay employee contributions, or the contributions shall <br>be picked up in accordance with KRS 61.560 and his employer shall pay <br>employer contributions in accordance with KRS 61.565. If a tuition agreement <br>is broken by the member, the member and employer contributions paid or <br>picked up during the period of educational leave shall be refunded; and
(c) An employee on educational leave, approved by the appointing authority, not
to exceed one (1) year, or with additional approval of one (1) additional year, <br>and not to exceed two (2) years within a five (5) year period, who is receiving <br>a salary of less than seventy-five percent (75%) of full salary, may elect to <br>retain membership in the system during the period of leave. If the employee <br>elects to retain membership in the system, he shall receive service credit by <br>having employee contributions picked up in accordance with KRS 61.560. His <br>employer shall pay employer contributions in accordance with KRS 61.565. If <br>a tuition agreement is broken by the member, the employee and employer <br>contributions paid or picked up during the period of educational leave shall be <br>refunded to the contributor and no service credit shall be earned for the period <br>of leave.
(4) The retirement office, upon detection, shall refund any erroneous employer and
employee contributions made to the retirement system and any interest credited in <br>accordance with KRS 61.575.
(5) Notwithstanding the provisions of this section and KRS 61.560, employees engaged
pursuant to KRS 148.026 and 56.491 in a regular full-time position as defined in <br>KRS 61.510(21) prior to January 1, 1993, shall be allowed service credit for each <br>month the employee received creditable compensation for an average of one <br>hundred (100) or more hours of work, if the employee pays to the retirement system <br>the contributions that would have been deducted for the period of employment. The <br>contributions shall be credited to the member's contribution account and shall not be <br>picked up pursuant to KRS 61.560(4). The employer contributions for the period, <br>plus interest calculated at the actuarial rate, shall be due within thirty (30) days of <br>notice of receipt of payment from the employee.
Effective: July 15, 1998 <br>History: Amended 1998 Ky. Acts ch. 154, sec. 66, effective July 15, 1998. -- Amended
1994 Ky. Acts ch. 485, sec. 10, effective July 15, 1994. </p>
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