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67A.510 Members' contributions -- Picked-up employee contributions.

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67A.510 Members' contributions -- Picked-up employee contributions. (1) Each active member shall contribute a sum equal to not less than ten and one-half percent (10.5%) nor more than eleven percent (11%) of current salary, to be <br>determined by the legislative body of the urban-county government. The <br>commissioner of finance of the government is hereby authorized to deduct such <br>amount from the salary of each active member in semimonthly installments. This <br>contribution shall be made as a deduction from salary, notwithstanding that the <br>salary paid in cash to such member may be reduced thereby below the established <br>statutory rate. Every member of the fund shall be deemed to consent and agree to <br>the deduction from salary as herein provided, and shall receipt for his full salary, <br>and payment to such member of salary less such deduction shall constitute a full <br>and complete discharge and acquittance of all claims and demand whatsoever for <br>the services rendered by such member during the period covered by such payment, <br>except as to the benefits herein provided. After August 1, 1982, employee <br>contributions shall be picked up by the urban-county government pursuant to <br>subsection (2) of this section. (2) The urban-county government shall, solely for the purpose of compliance with Section 414(h) of the United States Internal Revenue Code, pick up the employee <br>contributions required by this section for all compensation earned after August 1, <br>1982, and the contributions so picked up shall be treated as employer contributions <br>in determining tax treatment under the United States Internal Revenue Code and <br>KRS 141.010(10). However, the urban-county government shall continue to <br>withhold federal and state income taxes based upon these contributions and hold <br>them in a separate account until the Internal Revenue Service or the federal courts <br>rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, <br>these contributions shall not be included as gross income of the employee until such <br>time as the contributions are distributed or made available to the employee. The <br>picked-up employee contribution shall satisfy all obligations to the retirement fund <br>satisfied prior to August 1, 1982, by the employee contribution, and the picked-up <br>employee contribution shall be in lieu of an employee contribution. The urban-<br>county government shall pay these picked-up employee contributions from the same <br>source of funds which is used to pay earnings to the employee. The employee shall <br>have no option to receive the contributed amounts directly instead of having them <br>paid by the urban-county government to the fund. Employee contributions picked <br>up after August 1, 1982, shall be treated for all purposes of KRS 67A.360 to <br>67A.690 in the same manner and to the same extent as employee contributions <br>made prior to August 1, 1982. Effective: April 11, 1990 <br>History: Amended 1990 Ky. Acts ch. 189, sec. 3, effective July 13, 1990; and ch. 476, Pt. VII D, sec. 646, effective April 11, 1990. -- Amended 1982 Ky. Acts ch. 166, <br>sec. 37, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 329, sec. 1, effective <br>July 15, 1980. -- Created 1974 Ky. Acts ch. 106, sec. 16, effective July 1, 1974. Legislative Research Commission Note. (7/13/90). This section was amended by two 1990 Acts which do not appear to be in conflict and have been compiled together.