Illinois General Assembly - Illinois Compiled Statutes

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20 ILCS 405/405-110

(20 ILCS 405/405-110) (was 20 ILCS 405/64.2)

Sec. 405-110. Federal tax-exempt benefits in lieu of salary or wages; flexible spending.

(a) The Department may, at the
Director's discretion, establish
and implement or approve plans whereby State employees and officers,
including those of State universities and colleges, may enter into
agreements with their employer to elect to receive, in lieu of salary or
wages, benefits that are not taxable under the federal Internal
Revenue
Code.  These agreements may include the acceptance of a reduction
in
earnings or the foregoing of an increase in earnings by an employee and the
employer's payment of those amounts as employer contributions for
benefits
that the employee selects from a list of employee benefits
offered by the
employer.

(b) Prior to the establishment of a plan under subsection (a), the Director shall seek
the advice of interested State agencies regarding the content and
implementation of the plan.

(c) Selection of plan offerings under subsection (a) shall not be subject to the Illinois
Purchasing Act.

(d) Benefits selected by employees in plans under subsection (a) shall be included in gross income for
determination of pension base.

(e) To the extent allowable under federal law and regulations, the Department of Central Management Services must allow employees of State colleges and universities to participate in the Department's flexible spending program. The flexible spending program includes the dependent care assistance plan and the medical care assistance plan.

(Source: P.A. 95-457, eff. 1-1-08.)