Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/16-152.1

(40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)

Sec. 16-152.1.

Pickup of contributions.

(a) Each employer may pick up the member contributions required under
Section 16-152 for all salary earned after December 31, 1981.  If an employer
decides not to pick up the member
contributions, the amount that would have been picked up shall continue
to be deducted from salary.  If contributions are picked up, they
shall be treated as employer contributions in determining tax treatment under
the United States Internal Revenue Code.  The employer shall pay these member
contributions from the same source of funds which is used in paying salary to
the member.  The employer may pick up these contributions by a reduction in the
cash salary of the member 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 member contributions are picked up, they shall be treated for all
purposes of this Article 16 in the same manner as member contributions made
prior to the date the pick up began.

(b) The State Board of Education shall pick up the contributions of
regional superintendents required under Section 16-152 for all salary
earned for the 1982 calendar year and thereafter.

(c) Effective July 1, 1983, each employer shall pick up the member
contributions required under Section 16-152 for all salary earned after such
date.  Contributions so picked up shall be treated as employer contributions in
determining tax treatment under the United States Internal Revenue Code.  The
employer shall pay these member contributions from the same source of funds
which is used in paying salary to the member.  The employer may pick up these
contributions by a reduction in the cash salary of the member 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.  Member contributions so picked up
shall be treated for all purposes of this Article 16 in the same manner as
member contributions made prior to the date the pick up began.

(d) Subject to the requirements of federal law and the rules of the
board, beginning July 1, 1998 a member who is employed on a full-time basis
may elect to have the employer pick up optional contributions that the
member 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 election to have optional contributions picked
up is irrevocable.  At the time of making the election, the member shall
execute a binding, irrevocable payroll deduction authorization.  Upon receiving
notice of the election, the employer shall pick up the contributions by a
reduction in the cash salary of the member and shall pay the contributions from
the same source of funds that is used to pay earnings to the member.

(Source: P.A. 90-448, eff. 8-16-97.)