(40 ILCS 5/3-125.2) (from Ch. 108 1/2, par. 3-125.2)
Sec. 3-125.2.
Pick up of contributions.
A municipality may pick up
the police officers' contributions required by Section 3-125.1 for all salary
earned after December 31, 1981. If a municipality decides not to pick up
the contributions, the required contributions 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 municipality 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 police officers until such time as they
are distributed or made available. The municipality shall pay these contributions
from the same source of funds which is used to pay the salaries of police
officers. The municipality may pick up these contributions by a reduction
in the cash salary of the police officer 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 contributions are picked up they shall
be considered for all purposes of this Article as police officers' contributions
made prior to the time that contributions were picked up.
(Source: P.A. 83-1440.)
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