(40 ILCS 5/5-168.1) (from Ch. 108 1/2, par. 5-168.1)
Sec. 5-168.1.
The employer may pick up the employee contributions required
by Sections 5-167.1, 5-169, 5-170, 5-171 and 5-175.1
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 employee 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 5, including Section 5-168, in
the same manner and to the same extent as employee contributions made prior
to the date picked up.
(Source: P.A. 90-655, eff. 7-30-98.)
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