HB2993 93rd General Assembly


                                     LRB093 09888 EFG 10137 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Section 24-101 as follows:

 6        (40 ILCS 5/24-101) (from Ch. 108 1/2, par. 24-101)
 7        Sec.     24-101.     Deferred    compensation    program.
 8    Notwithstanding  any  law  to  the  contrary,  the  State  of
 9    Illinois or any unit of local government or  school  district
10    may  enter  into a written contract with any of its employees
11    to defer a part of their gross compensation  and  may  invest
12    such  funds  in any such manner as prescribed by the deferred
13    compensation  program  adopted  by  it  under  this  Article.
14    Compensation deferred pursuant  to  a  deferred  compensation
15    program  adopted  under  this  Article  shall  not exceed the
16    amount of compensation allowed to be deferred  without  being
17    subject  to  income  tax  in  the year in which it is earned,
18    pursuant to Section 457 of the United States Internal Revenue
19    Code or laws supplementary or amendatory thereto.
20        It is hereby declared to be in  the  public  interest  to
21    provide  public  employees  with  a  plan for the deferral of
22    compensation and the accrual of income and  gain  thereon  if
23    such  deferred compensation be invested, and to encourage the
24    continued service of public  employees  by  making  available
25    such benefits to them.
26    (Source: P.A. 82-145.)