Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/14-133.1

(40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)

Sec. 14-133.1.

Pickup of contributions.

(a) Each department shall pick up the employee contributions
required by Section 14-133 for all compensation earned after December 31,
1981, and the contributions so picked up shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, each department shall continue to withhold federal
and State income taxes based upon these contributions until the Internal
Revenue Service or the federal courts rule that pursuant to Section 414(h)
of the United States Internal Revenue Code, these contributions shall not
be included as gross income of the employee until such time as they are
distributed or made available.

The department shall pay these employee contributions from the same
fund which is used in paying earnings to the
employee.  The department may pick up these contributions by a reduction in
the cash salary of the employee or by an offset against a future salary
increase or by a combination of a reduction in salary and offset against a
future salary increase.  If employee contributions are picked up they shall
be treated for all purposes of this Article 14 in the same manner and to
the same extent as employee contributions made prior to the date picked up.

(b) Subject to the requirements of federal law, an employee of a
department may elect to have the department pick up optional contributions that
the employee has elected to pay to the System, and the contributions so picked
up shall be treated as employer contributions for the purposes of determining
federal tax treatment.  The department shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the contributions
from the same fund that is used to pay earnings to the employee.
The election to have optional contributions picked up is irrevocable and the
optional contributions may not thereafter be prepaid, by direct payment or
otherwise.
If the provision authorizing the optional contribution requires
payment by a stated date (rather than the date of withdrawal or retirement),
that requirement shall be deemed to have been satisfied if (i) on or before the
stated date the employee executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the picked-up
contributions are in fact paid to the System as provided in the election.

(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)