Illinois General Assembly - Full Text of HB2974
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Full Text of HB2974  102nd General Assembly

HB2974 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2974

 

Introduced 2/19/2021, by Rep. Thomas Morrison

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-152.1  from Ch. 108 1/2, par. 16-152.1

    Amends the Downstate Teachers Article of the Illinois Pension Code. Prohibits an employer from making employee contributions on behalf of an employee, except for the sole purpose of allowing an employee to make pre-tax contributions. Provides that employment contracts or collective bargaining agreements in effect on the effective date of the amendatory Act are not subject to the prohibition, but any such contract or collective bargaining agreement that is subsequently modified, amended, or renewed or that is in effect 3 or more years after the effective date of the amendatory Act shall be subject to the prohibition. Effective immediately.


LRB102 14901 RPS 20255 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2974LRB102 14901 RPS 20255 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Section 16-152.1 as follows:
 
6    (40 ILCS 5/16-152.1)  (from Ch. 108 1/2, par. 16-152.1)
7    Sec. 16-152.1. Pickup of contributions.
8    (a) Each employer may pick up the member contributions
9required under Section 16-152 for all salary earned after
10December 31, 1981. If an employer decides not to pick up the
11member contributions, the amount that would have been picked
12up shall continue to be deducted from salary. If contributions
13are picked up, they shall be treated as employer contributions
14in determining tax treatment under the United States Internal
15Revenue Code. The employer shall pay these member
16contributions from the same source of funds which is used in
17paying salary to the member. The employer may pick up these
18contributions by a reduction in the cash salary of the member
19or by an offset against a future salary increase or by a
20combination of a reduction in salary and offset against a
21future salary increase. If member contributions are picked up,
22they shall be treated for all purposes of this Article 16 in
23the same manner as member contributions made prior to the date

 

 

HB2974- 2 -LRB102 14901 RPS 20255 b

1the pick up began.
2    (b) The State Board of Education shall pick up the
3contributions of regional superintendents required under
4Section 16-152 for all salary earned for the 1982 calendar
5year and thereafter.
6    (c) Effective July 1, 1983, each employer shall pick up
7the member contributions required under Section 16-152 for all
8salary earned after such date. Contributions so picked up
9shall be treated as employer contributions in determining tax
10treatment under the United States Internal Revenue Code. The
11employer shall pay these member contributions from the same
12source of funds which is used in paying salary to the member.
13The employer may pick up these contributions by a reduction in
14the cash salary of the member or by an offset against a future
15salary increase or by a combination of a reduction in salary
16and offset against a future salary increase. Member
17contributions so picked up shall be treated for all purposes
18of this Article 16 in the same manner as member contributions
19made prior to the date the pick up began.
20    (d) Subject to the requirements of federal law and the
21rules of the board, beginning July 1, 1998 a member who is
22employed on a full-time basis may elect to have the employer
23pick up optional contributions that the member has elected to
24pay to the System, and the contributions so picked up shall be
25treated as employer contributions for the purposes of
26determining federal tax treatment. The election to have

 

 

HB2974- 3 -LRB102 14901 RPS 20255 b

1optional contributions picked up is irrevocable. At the time
2of making the election, the member shall execute a binding,
3irrevocable payroll deduction authorization. Upon receiving
4notice of the election, the employer shall pick up the
5contributions by a reduction in the cash salary of the member
6and shall pay the contributions from the same source of funds
7that is used to pay earnings to the member.
8    (e) Beginning on the effective date of this amendatory Act
9of the 102nd General Assembly, no employer shall pay employee
10contributions on behalf of an employee, except for the sole
11purpose of allowing the employee to make pre-tax contributions
12as provided in this Section. The provisions of this subsection
13(e) do not apply to an employment contract or collective
14bargaining agreement that is in effect on the effective date
15of this amendatory Act of the 102nd General Assembly. However,
16any such contract or agreement that is subsequently modified,
17amended, or renewed or that is in effect 3 or more years after
18the effective date of this amendatory Act of the 102nd General
19Assembly shall be subject to the provisions of this subsection
20(e).
21(Source: P.A. 90-448, eff. 8-16-97.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.