78.615 Deduction of employee contributions -- Service credit -- Employer's report -- Picked-up employee contributions.
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78.615 Deduction of employee contributions -- Service credit -- Employer's report -- Picked-up employee contributions. (1) Employee contributions shall be deducted each payroll period from the creditable compensation of each employee of an agency participating in the system while he is <br>classified as regular full-time as defined in KRS 78.510 unless the person did not <br>elect to become a member as provided by KRS 61.545(3) or by KRS 78.540(2). <br>After August 1, 1982, employee contributions shall be picked up by the employer <br>pursuant to KRS 78.610(4). <br>(a) For employees who are not employed by a school board, service credit shall be allowed for each month contributions are deducted or picked up during a <br>fiscal or calendar year, if the employee receives creditable compensation for <br>an average of one hundred (100) hours or more of work per month based on <br>the actual hours worked in a calendar or fiscal year. If the average number of <br>hours of work is less than one hundred (100) hours per month, the employee <br>shall be allowed credit only for those months he receives creditable <br>compensation for one hundred (100) hours of work. (b) For noncertified employees of school boards, for service prior to July 1, 2000, service credit shall be allowed for each month contributions are deducted or <br>picked up under the employee's employment contract during a school year <br>determined by dividing the actual number of contracted calendar days worked <br>by twenty (20) and rounded to the nearest whole month if the employee <br>receives creditable compensation for an average of eighty (80) or more hours <br>of work per month based on the employee's employment contract. The school <br>board shall certify the number of calendar days worked, the rate of pay, and <br>the hours in a work day for each employee monthly or annually. The employer <br>shall file at the retirement office the final monthly report or the annual report <br>for a fiscal year no later than twenty (20) days following the completion of the <br>fiscal year. The retirement system shall impose a penalty on the employer of <br>one thousand dollars ($1,000) if the information is not submitted by the date <br>required with an additional two hundred and fifty dollars ($250) for each <br>additional thirty (30) day period the information is reported late. <br>1. If the employee works fewer than the number of contracted calendar <br>days, the employee shall receive service credit determined by dividing <br>the actual number of contracted calendar days worked by twenty (20) <br>and rounded to the nearest whole month, provided that the number of <br>hours worked during the period averages eighty (80) or more hours. 2. If the employee works fewer than the number of contracted calendar <br>days and the average number of hours worked is less than eighty (80) per <br>month, then the employee shall receive service credit for each calendar <br>month in which he worked eighty (80) or more hours. 3. The retirement system shall refund contributions and service credit for <br>any period for which the employee is not given credit under this <br>subsection. (c) For noncertified employees of school boards, for service on and after July 1, 2000, at the close of each fiscal year, the retirement system shall add service <br>credit to the account of each employee who made contributions to his or her <br>account during the year. Employees shall be entitled to a full year of service <br>credit if their total paid calendar days were not less than one hundred eighty <br>(180) calendar days for a regular school or fiscal year. In the event an <br>employee is paid for less than one hundred eighty (180) calendar days, the <br>employee may purchase credit according to administrative regulations <br>promulgated by the system. In no case shall more than one (1) year of service <br>be credited for all service performed in one (1) fiscal year. Employees who <br>complete their employment contract prior to the close of a fiscal year and elect <br>to retire prior to the close of a fiscal year shall have their service credit <br>reduced by eight percent (8%) for each calendar month that the retirement <br>becomes effective prior to July 1. Employees who are employed and paid for <br>less than the number of calendar days required in their normal employment <br>year shall be entitled to pro rata service credit for the fractional service. This <br>credit shall be based upon the number of calendar days employed and the <br>number of calendar days in the employee's annual employment agreement or <br>normal employment year. Service credit may not exceed the ratio between the <br>school or fiscal year and the number of months or fraction of a month the <br>employee is employed during that year. (d) Notwithstanding paragraph (c) of this subsection, a noncertified employee of a school board who retires between July 1, 2000, and August 1, 2001, may <br>choose to have service earned between July 1, 2000, and August 1, 2001, <br>credited as described in paragraph (b) of this subsection, if the employee or <br>retired member notifies the retirement system within one (1) year of his initial <br>retirement. The decision once made shall be irrevocable. (2) Employee contributions shall not be deducted from the creditable compensation of any employee or picked up by the employer while he is seasonal, emergency, <br>temporary, or part-time. No service credit shall be earned. (3) Contributions shall not be made or picked up by the employer and no service credit shall 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; and (b) A member on educational leave who meets the criteria established by the state Personnel Cabinet for approved educational leave, who is receiving seventy-<br>five percent (75%) or more of full salary, shall receive service credit and shall <br>pay member contributions in accordance with KRS 78.610, and his employer <br>shall pay employer contributions or the contributions shall be picked up in <br>accordance with KRS 61.565. If a tuition agreement is broken by the member, <br>the member and employer contributions paid or picked up during the period of <br>educational leave shall be refunded. (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 78.640. Effective: July 15, 2002 <br>History: Amended 2002 Ky. Acts ch. 52, sec. 20, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 151, sec. 1, effective June 21, 2001. -- Amended 2000 Ky. Acts <br>ch. 299, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 105, sec. 23, <br>effective July 15, 1998; and ch. 154, sec. 73, effective July 15, 1998. -- Amended <br>1996 Ky. Acts ch. 167, sec. 25, effective July 15, 1996. -- Amended 1994 Ky. 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PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/kentucky/2009/078-00/pdf/615.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003e78.615 Deduction of employee contributions -- Service credit -- Employer's report -- Picked-up employee contributions. (1) Employee contributions shall be deducted each payroll period from the creditable compensation of each employee of an agency participating in the system while he is \u003cbr\u003eclassified as regular full-time as defined in KRS 78.510 unless the person did not \u003cbr\u003eelect to become a member as provided by KRS 61.545(3) or by KRS 78.540(2). \u003cbr\u003eAfter August 1, 1982, employee contributions shall be picked up by the employer \u003cbr\u003epursuant to KRS 78.610(4). \u003cbr\u003e(a) For employees who are not employed by a school board, service credit shall be allowed for each month contributions are deducted or picked up during a \u003cbr\u003efiscal or calendar year, if the employee receives creditable compensation for \u003cbr\u003ean average of one hundred (100) hours or more of work per month based on \u003cbr\u003ethe actual hours worked in a calendar or fiscal year. If the average number of \u003cbr\u003ehours of work is less than one hundred (100) hours per month, the employee \u003cbr\u003eshall be allowed credit only for those months he receives creditable \u003cbr\u003ecompensation for one hundred (100) hours of work. (b) For noncertified employees of school boards, for service prior to July 1, 2000, service credit shall be allowed for each month contributions are deducted or \u003cbr\u003epicked up under the employee's employment contract during a school year \u003cbr\u003edetermined by dividing the actual number of contracted calendar days worked \u003cbr\u003eby twenty (20) and rounded to the nearest whole month if the employee \u003cbr\u003ereceives creditable compensation for an average of eighty (80) or more hours \u003cbr\u003eof work per month based on the employee's employment contract. The school \u003cbr\u003eboard shall certify the number of calendar days worked, the rate of pay, and \u003cbr\u003ethe hours in a work day for each employee monthly or annually. The employer \u003cbr\u003eshall file at the retirement office the final monthly report or the annual report \u003cbr\u003efor a fiscal year no later than twenty (20) days following the completion of the \u003cbr\u003efiscal year. The retirement system shall impose a penalty on the employer of \u003cbr\u003eone thousand dollars (\u0026#36;1,000) if the information is not submitted by the date \u003cbr\u003erequired with an additional two hundred and fifty dollars (\u0026#36;250) for each \u003cbr\u003eadditional thirty (30) day period the information is reported late. \u003cbr\u003e1. If the employee works fewer than the number of contracted calendar \u003cbr\u003edays, the employee shall receive service credit determined by dividing \u003cbr\u003ethe actual number of contracted calendar days worked by twenty (20) \u003cbr\u003eand rounded to the nearest whole month, provided that the number of \u003cbr\u003ehours worked during the period averages eighty (80) or more hours. 2. If the employee works fewer than the number of contracted calendar \u003cbr\u003edays and the average number of hours worked is less than eighty (80) per \u003cbr\u003emonth, then the employee shall receive service credit for each calendar \u003cbr\u003emonth in which he worked eighty (80) or more hours. 3. The retirement system shall refund contributions and service credit for \u003cbr\u003eany period for which the employee is not given credit under this \u003cbr\u003esubsection. (c) For noncertified employees of school boards, for service on and after July 1, 2000, at the close of each fiscal year, the retirement system shall add service \u003cbr\u003ecredit to the account of each employee who made contributions to his or her \u003cbr\u003eaccount during the year. Employees shall be entitled to a full year of service \u003cbr\u003ecredit if their total paid calendar days were not less than one hundred eighty \u003cbr\u003e(180) calendar days for a regular school or fiscal year. In the event an \u003cbr\u003eemployee is paid for less than one hundred eighty (180) calendar days, the \u003cbr\u003eemployee may purchase credit according to administrative regulations \u003cbr\u003epromulgated by the system. In no case shall more than one (1) year of service \u003cbr\u003ebe credited for all service performed in one (1) fiscal year. Employees who \u003cbr\u003ecomplete their employment contract prior to the close of a fiscal year and elect \u003cbr\u003eto retire prior to the close of a fiscal year shall have their service credit \u003cbr\u003ereduced by eight percent (8%) for each calendar month that the retirement \u003cbr\u003ebecomes effective prior to July 1. Employees who are employed and paid for \u003cbr\u003eless than the number of calendar days required in their normal employment \u003cbr\u003eyear shall be entitled to pro rata service credit for the fractional service. This \u003cbr\u003ecredit shall be based upon the number of calendar days employed and the \u003cbr\u003enumber of calendar days in the employee's annual employment agreement or \u003cbr\u003enormal employment year. Service credit may not exceed the ratio between the \u003cbr\u003eschool or fiscal year and the number of months or fraction of a month the \u003cbr\u003eemployee is employed during that year. (d) Notwithstanding paragraph (c) of this subsection, a noncertified employee of a school board who retires between July 1, 2000, and August 1, 2001, may \u003cbr\u003echoose to have service earned between July 1, 2000, and August 1, 2001, \u003cbr\u003ecredited as described in paragraph (b) of this subsection, if the employee or \u003cbr\u003eretired member notifies the retirement system within one (1) year of his initial \u003cbr\u003eretirement. The decision once made shall be irrevocable. (2) Employee contributions shall not be deducted from the creditable compensation of any employee or picked up by the employer while he is seasonal, emergency, \u003cbr\u003etemporary, or part-time. No service credit shall be earned. (3) Contributions shall not be made or picked up by the employer and no service credit shall be earned by a member while on leave except: \u003cbr\u003e(a) A member on military leave shall be entitled to service credit in accordance with KRS 61.555; and (b) A member on educational leave who meets the criteria established by the state Personnel Cabinet for approved educational leave, who is receiving seventy-\u003cbr\u003efive percent (75%) or more of full salary, shall receive service credit and shall \u003cbr\u003epay member contributions in accordance with KRS 78.610, and his employer \u003cbr\u003eshall pay employer contributions or the contributions shall be picked up in \u003cbr\u003eaccordance with KRS 61.565. If a tuition agreement is broken by the member, \u003cbr\u003ethe member and employer contributions paid or picked up during the period of \u003cbr\u003eeducational leave shall be refunded. (4) The retirement office, upon detection, shall refund any erroneous employer and employee contributions made to the retirement system and any interest credited in \u003cbr\u003eaccordance with KRS 78.640. Effective: July 15, 2002 \u003cbr\u003eHistory: Amended 2002 Ky. Acts ch. 52, sec. 20, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 151, sec. 1, effective June 21, 2001. -- Amended 2000 Ky. Acts \u003cbr\u003ech. 299, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 105, sec. 23, \u003cbr\u003eeffective July 15, 1998; and ch. 154, sec. 73, effective July 15, 1998. -- Amended \u003cbr\u003e1996 Ky. Acts ch. 167, sec. 25, effective July 15, 1996. -- Amended 1994 Ky. 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