HB5765 93RD GENERAL ASSEMBLY

LRB093 17260 LRD 42926 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5765

Introduced 2/6/2004, by Michael J. Madigan

SYNOPSIS AS INTRODUCED:

40 ILCS 5/24-101

from Ch. 108 1/2, par. 24-101

Amends the Illinois Pension Code. Makes a technical change in a Section concerning deferred compensation.

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to pensions.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 24-101 as follows:

(40 ILCS 5/24-101) (from Ch. 108 1/2, par. 24-101)

Sec. 24-101. Deferred compensation program. Notwithstanding any law to the contrary, the State of Illinois or any unit of local government or school district may enter into a written contract with any of its employees to defer a part of their gross compensation and may invest such funds in any such manner as prescribed by the deferred compensation program adopted by it under this Article. Compensation deferred pursuant to a deferred compensation program adopted under this Article shall not exceed the amount of compensation allowed to be deferred without being subject to income tax in the year in which it is earned, pursuant to Section 457 of the United States Internal Revenue Code or laws supplementary or amendatory thereto.

It is hereby declared to be in the public interest to provide public employees with a plan for the deferral of compensation and the accrual of income and gain thereon if such deferred compensation be invested, and to encourage the continued service of public employees by making available such benefits to them.

(Source: P.A. 82-145.)