99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4256

 

Introduced , by Rep. Jeanne M Ives

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-110  from Ch. 108 1/2, par. 15-110

    Amends the State Universities Article of the Illinois Pension Code. Provides that for an employee who becomes a participant on or after the effective date of the amendatory Act, "basic compensation" does not include (1) the value of maintenance, board, living quarters, personal laundry, or other allowances furnished in lieu of salary which are considered gross income under the Internal Revenue Code; (2) certain employee contributions to the System; (3) certain employer contributions to a custodial account; and (4) fringe benefits that an employee elects to receive, in lieu of cash salary or wages, that are not taxable under the Internal Revenue Code. Effective immediately.


LRB099 13263 RPS 37173 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4256LRB099 13263 RPS 37173 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 15-110 as follows:
 
6    (40 ILCS 5/15-110)  (from Ch. 108 1/2, par. 15-110)
7    Sec. 15-110. Basic compensation. "Basic compensation":
8    (a) For an employee who first became a participant before
9the effective date of this amendatory Act of the 99th General
10Assembly, "basic compensation" means the The gross basic rate
11of salary or wages payable by an employer, including the value
12of maintenance, board, living quarters, personal laundry or
13other allowances furnished in lieu of salary which are
14considered gross income under the Federal Internal Revenue
15Code, the employee contributions required under Section
1615-157, and the amount paid by any employer to a custodial
17account for investment in regulated investment company stocks
18for the benefit of the employee pursuant to "An Act in relation
19to payments to custodial accounts for the benefit of employees
20of public institutions of higher education", approved
21September 9, 1983, and the amount of the premium payable by any
22employer to an insurance company or companies on an annuity
23contract, pursuant to the employee's election to accept a

 

 

HB4256- 2 -LRB099 13263 RPS 37173 b

1reduction in earnings or forego an increase in earnings under
2Section 30c of "An Act in relation to State Finance," approved
3June 10, 1919, as amended, or a tax-sheltered annuity plan
4approved by any employer. Basic compensation does not include
5(1) salary or wages for overtime or other extra service; (2)
6prospective salary or wages under a summer teaching contract
7not yet entered upon; and (3) overseas differential allowances,
8quarters allowances, post allowances, educational allowances
9and transportation allowances paid by an employer under a
10contract with the federal government or its agencies for
11services rendered in other countries. If an employee elects to
12receive in lieu of cash salary or wages, fringe benefits which
13are not taxable under the Federal Internal Revenue Code, the
14amount of the cash salary or wages which is waived shall be
15included in determining basic compensation.
16    (b) For an employee who first becomes a participant on or
17after the effective date of this amendatory Act of the 99th
18General Assembly, "basic compensation" means the gross basic
19rate of salary or wages payable by an employer. Basic
20compensation does not include (1) salary or wages for overtime
21or other extra service; (2) prospective salary or wages under a
22summer teaching contract not yet entered upon; (3) overseas
23differential allowances, quarters allowances, post allowances,
24educational allowances, and transportation allowances paid by
25an employer under a contract with the federal government or its
26agencies for services rendered in other countries; (4) the

 

 

HB4256- 3 -LRB099 13263 RPS 37173 b

1value of maintenance, board, living quarters, personal
2laundry, or other allowances furnished in lieu of salary which
3are considered gross income under the federal Internal Revenue
4Code; (5) the employee contributions required under Section
515-157; and (6) the amount paid by any employer to a custodial
6account for investment in regulated investment company stocks
7for the benefit of the employee pursuant to "An Act in relation
8to payments to custodial accounts for the benefit of employees
9of public institutions of higher education", approved
10September 9, 1983, and the amount of the premium payable by any
11employer to an insurance company or companies on an annuity
12contract, pursuant to the employee's election to accept a
13reduction in earnings or forego an increase in earnings under
14Section 30c of "An Act in relation to State Finance", approved
15June 10, 1919, as amended, or a tax-sheltered annuity plan
16approved by any employer. If an employee elects to receive in
17lieu of cash salary or wages, fringe benefits which are not
18taxable under the federal Internal Revenue Code, the amount of
19the cash salary or wages which is waived shall not be included
20in determining basic compensation.
21(Source: P.A. 84-1308.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.