(40 ILCS 5/4-118.2)
(from Ch. 108 1/2, par. 4-118.2)
Pick up of contributions.
A municipality may pick up
the firefighters' contributions required by Section 4-118.1 for all salary
earned after December 31, 1981. If a municipality decides not to pick up
the contributions, the required contributions shall continue to be deducted
from salary. If contributions are picked up, they shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, the municipality 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 firefighters until such time as they
are distributed or made available. The municipality shall pay these contributions
from the same source of funds which is used to pay the salaries of firefighters.
The municipality may pick up these contributions by a reduction in the cash
salary of the firefighters 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 contributions are picked up they shall be considered
for all purposes of this Article as firefighters' contributions made prior
to the time that contributions were picked up.
(Source: P.A. 83-1440.)