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90_HB3514eng
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.
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HB3514 Engrossed 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
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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.)