HB4256 99TH GENERAL ASSEMBLY

LRB099 13263 RPS 37173 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4256

Introduced , by Rep. Jeanne M Ives

SYNOPSIS AS INTRODUCED:

40 ILCS 5/15-110

from Ch. 108 1/2, par. 15-110

Amends the State Universities Article of the Illinois Pension Code. Provides that for an employee who becomes a participant on or after the effective date of the amendatory Act, "basic compensation" does not include (1) the value of maintenance, board, living quarters, personal laundry, or other allowances furnished in lieu of salary which are considered gross income under the Internal Revenue Code; (2) certain employee contributions to the System; (3) certain employer contributions to a custodial account; and (4) fringe benefits that an employee elects to receive, in lieu of cash salary or wages, that are not taxable under the Internal Revenue Code. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 15-110 as follows:

(40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)

Sec. 15-110. Basic compensation. "Basic compensation":

(a) For an employee who first became a participant before the effective date of this amendatory Act of the 99th General Assembly, "basic compensation" means the The gross basic rate of salary or wages payable by an employer, including the value of maintenance, board, living quarters, personal laundry or other allowances furnished in lieu of salary which are considered gross income under the Federal Internal Revenue Code, the employee contributions required under Section 15-157, and the amount paid by any employer to a custodial account for investment in regulated investment company stocks for the benefit of the employee pursuant to "An Act in relation to payments to custodial accounts for the benefit of employees of public institutions of higher education", approved September 9, 1983, and the amount of the premium payable by any employer to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of "An Act in relation to State Finance," approved June 10, 1919, as amended, or a tax-sheltered annuity plan approved by any employer. Basic compensation does not include (1) salary or wages for overtime or other extra service; (2) prospective salary or wages under a summer teaching contract not yet entered upon; and (3) overseas differential allowances, quarters allowances, post allowances, educational allowances and transportation allowances paid by an employer under a contract with the federal government or its agencies for services rendered in other countries. If an employee elects to receive in lieu of cash salary or wages, fringe benefits which are not taxable under the Federal Internal Revenue Code, the amount of the cash salary or wages which is waived shall be included in determining basic compensation.

(b) For an employee who first becomes a participant on or after the effective date of this amendatory Act of the 99th General Assembly, "basic compensation" means the gross basic rate of salary or wages payable by an employer. Basic compensation does not include (1) salary or wages for overtime or other extra service; (2) prospective salary or wages under a summer teaching contract not yet entered upon; (3) overseas differential allowances, quarters allowances, post allowances, educational allowances, and transportation allowances paid by an employer under a contract with the federal government or its agencies for services rendered in other countries; (4) the value of maintenance, board, living quarters, personal laundry, or other allowances furnished in lieu of salary which are considered gross income under the federal Internal Revenue Code; (5) the employee contributions required under Section 15-157; and (6) the amount paid by any employer to a custodial account for investment in regulated investment company stocks for the benefit of the employee pursuant to "An Act in relation to payments to custodial accounts for the benefit of employees of public institutions of higher education", approved September 9, 1983, and the amount of the premium payable by any employer to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of "An Act in relation to State Finance", approved June 10, 1919, as amended, or a tax-sheltered annuity plan approved by any employer. If an employee elects to receive in lieu of cash salary or wages, fringe benefits which are not taxable under the federal Internal Revenue Code, the amount of the cash salary or wages which is waived shall not be included in determining basic compensation.

(Source: P.A. 84-1308.)

Section 99. Effective date. This Act takes effect upon becoming law.