(40 ILCS 5/6-165.1)
(from Ch. 108 1/2, par. 6-165.1)
The employer may pick up the employee contributions required
by Sections 6-143.1, 6-152, 6-164, 6-166, 6-167, 6-168 and 6-170 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 6, including Section 6-165, in the same manner
and to the same extent as employee contributions made prior to the date picked up.
(Source: P.A. 81-1536.)