RELATES TO:
KRS
161.560
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
161.560 requires the Teachers' Retirement
System to impose an interest penalty at an annual rate not to exceed twelve
(12) percent per year on employers who do not remit member contributions within
fifteen (15) days following each payroll period. This administrative regulation
establishes guidelines for submission of payroll reports, contribution lists,
other data from employers, and imposition of the interest penalty.
Section 1. Each employer shall advise the
Teachers' Retirement System of the payroll dates that are applicable to all
employees who are members of the Teachers' Retirement System. The employers
shall be responsible for advising the Teachers' Retirement System of any
changes in the payroll dates.
Section
2. In forwarding the member contributions, the employer shall
certify that the submitted monies represent all contributions deducted for the
applicable pay period.
Section 3.
In the event that member contributions are not received by the Teachers'
Retirement System within fifteen (15) days following a payroll period, the
employer shall be charged interest at the rate of one (1) percent simple
interest of the amount of the late contribution for each month or part of a
month that the contributions are late. In no event shall the interest charge
exceed twelve (12) percent during a twelve (12) month period. The employer
shall pay the imposed penalty to the Teachers' Retirement System within thirty
(30) days after notification of the infraction.
Section 4. The employment contract, payroll
and retirement contribution records of members shall be made available to
representatives of the Teachers' Retirement System by the employer at any time
during regular working hours.
Section
5. The Teachers' Retirement System may require from the employer
payroll reports, contribution lists and other pertinent data that are necessary
to identify member retirement contributions. The required information shall be
on forms furnished or approved by the system.
