State of Illinois
90th General Assembly
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[ Engrossed ]

90_HB3514

      40 ILCS 5/5-168.1         from Ch. 108 1/2, par. 5-168.1
          Amends the Illinois Pension Code.  Corrects an error in a
      cross reference.
                                                     LRB9011156EGfg
                                               LRB9011156EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 5-168.1.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 5-168.1 as follows:
 7        (40 ILCS 5/5-168.1) (from Ch. 108 1/2, par. 5-168.1)
 8        Sec.  5-168.1.   The  employer  may  pick up the employee
 9    contributions required by  Sections  5-167.1,  5-169,  5-170,
10    5-171  and  5-175.1  5.175.1 for salary earned after December
11    31, 1981.  If employee contributions are not picked  up,  the
12    amount  that  would have been picked up under this amendatory
13    Act of 1980 shall continue to be deducted  from  salary.   If
14    employee contributions are picked up they shall be treated as
15    employer contributions in determining tax treatment under the
16    United  States  Internal  Revenue Code; however, the employer
17    shall continue to withhold Federal  and  state  income  taxes
18    based  upon  these  contributions  until the Internal Revenue
19    Service or the Federal courts rule that pursuant  to  Section
20    414(h)  of  the  United  States  Internal Revenue Code, these
21    contributions shall not be included as gross  income  of  the
22    employee  until  such  time  as  they are distributed or made
23    available.    The   employer   shall   pay   these   employee
24    contributions from the same source of funds which is used  in
25    paying salary to the employee. The employer may pick up these
26    contributions  by  a  reduction  in  the  cash  salary of the
27    employee or by an offset against a future salary increase  or
28    by  a combination of a reduction in salary and offset against
29    a future salary  increase.   If  employee  contributions  are
30    picked  up  they  shall  be  treated for all purposes of this
31    Article 5, including Section 5-168, in the same manner and to
                            -2-                LRB9011156EGfg
 1    the same extent as employee contributions made prior  to  the
 2    date picked up.
 3    (Source: P.A. 81-1536; revised 12-18-97.)

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