KRS 141.0215 — Inclusion in gross income of government retirement payments after December 31, 1997 -- Computation

(1) Notwithstanding the provisions of KRS 141.010(1), for tax years commencing on or
after January 1, 1998, the amount of all previously untaxe d distributions from a
retirement plan paid pursuant to KRS Chapters 6, 16, 21, 61, 67A, 78, 90, 95, 96,
161, and 164, and the amount of all previously untaxed distributions paid from a
retirement plan by the federal government, which are excluded from gro ss income
pursuant to KRS 141.021, shall be included in gross income as follows:
(a) Multiply the total annual government retirement payments by a fraction whose
numerator is the number of full or partial years of service performed for the
governmental unit making the retirement payments after January 1, 1998, and
whose denominator is the total number of full or partial years of service
performed for the governmental unit making retirement payments, including
purchased service credit. Purchased service cred its shall be included in the
numerator of the fraction only if the services for which credits are being
purchased were provided after January 1, 1998.
(b) The resulting number shall be the amount included in gross income.
(2) Any taxpayer receiving governm ent retirement payments from more than one (1)
governmental unit shall separately determine the payment amount attributable to
each unit to be included in gross income, using the formula set forth in subsection
(1) of this section.