(40 ILCS 5/17-130.2)
Sec. 17-130.2.
Pickup of optional contributions.
(a) For the purposes of this Section, "optional contributions" means
contributions that a member elects to make in order to qualify for the
augmented service retirement pension rate under Section 17-119.1.
(b) Subject to the requirements of federal law and the rules of the
Board, beginning July 1, 1998 a member who is employed on a full-time basis
may elect to have the Employer pick up optional contributions that the
member has elected to pay to the Fund, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The election to have optional contributions picked
up is irrevocable. At the time of making the election, the member shall
execute a binding, irrevocable payroll deduction authorization. Upon receiving
notice of the election, the Employer shall pick up the contributions by a
reduction in the cash salary of the member and shall pay the contributions
from the same source of funds that is used to pay earnings to the member.
(c) Each Employer under this Fund shall take the steps necessary to
comply with the requirements of Section 414(h) of the Internal Revenue Code
of 1986, as amended, to permit the pickup of optional contributions on a
tax-deferred basis.
(Source: P.A. 90-582, eff. 5-27-98.)
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