Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/15-157.1

(40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)

Sec. 15-157.1.

Pickup of employee contributions.

(a) Each employer shall pick up the employee contributions required
under subsections (a), (b), and (c) of Section 15-157 for all earnings payments
made on and after January 1, 1981, and the contributions so picked up
shall be treated as employer contributions in determining tax treatment
under the United States Internal Revenue Code. These contributions shall
not be included as gross income of the participant 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 earnings
to the employee.  The employer may pick up these contributions by a reduction
in the cash salary of the participants, 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.

(b) Subject to the requirements of federal law, a participating employee
may elect to have the employer pick up optional contributions that the
participant has elected to pay to the System under Section 15-157(g), and the
contributions so picked up shall be treated as employer contributions for the
purposes of determining federal tax treatment under the federal Internal
Revenue Code of 1986.  These contributions shall not be included as gross
income of the participant until such time as they are distributed or made
available.  The employer shall pick up the contributions by a reduction in the
cash salary of the participant and shall pay the contributions from the same
source of funds that is used to pay earnings to the participant.  The election
to have optional contributions picked up is irrevocable.

(Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97.)