(40 ILCS 5/12-150.1) (from Ch. 108 1/2, par. 12-150.1)
Sec. 12-150.1.
The employer may pick up the employee contributions required
by Sections 12-150, 12-151, 12-151.1, 12-151.2 and 12-152 for salary earned
after December 31, 1981. If employee contributions are not picked up, the
amount that would have been picked up under this amendatory Act of 1980
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; however, the employer 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 employer shall pay these employee contributions from the same source
of funds which is used in paying salary to the employee. The employer
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 12 in the same manner and to the
same extent as employee contributions made prior to the date picked up.
(Source: P.A. 81-1536.)
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