(40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
Sec. 17-130.1.
Employer contributions on behalf of employees.
An Employer
and the Board may make and may incur an obligation
to make contributions on behalf of its employees in an amount not to exceed
the employee contributions required by Section 17-130 for all compensation
earned after September 21, 1981. If the
Employer or the Board of Education determines not to make such
contributions or incur an
obligation to make such contributions, the amount that it could
have contributed on behalf of its employees shall continue to
be deducted from salary. If contributions are made by an Employer or the
Board
on behalf of its employees they shall be treated as employer contributions
in determining tax treatment under the United States Internal Revenue Code.
An Employer or the Board may make these
contributions on behalf
of its employees 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. An Employer or the Board shall
pay these employee contributions
from the same source of funds which is used in paying salary to the employee,
or it may also or alternatively make such contributions from the proceeds
of the tax authorized by Section 34-60
of the School Code. Such employee contributions shall be treated for all purposes of this
Article 17 in the same manner and to
the same extent as employee contributions made by employees and deducted
from salary; provided, however, that contributions made by the Board of
Education on behalf of its employees which are to be paid from the proceeds
of the tax, as provided in Section
34-60
of the School Code, shall not be treated as teachers' pension
contributions for the purposes of Section 17-132 of the Illinois Pension
Code, and provided further, that contributions which are made by the Board
of Education on behalf of its employees shall not be treated as a pension
or retirement obligation of the Board of Education for purposes of Section
12 of "An Act in relation to State revenue sharing with local governmental
entities", approved July 31, 1969.
(Source: P.A. 90-566, eff. 1-2-98.)
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