7.25 Tax Levy for Employer Contributions

Section 40 ILCS 5/7-171 of the Illinois Pension Code specifically provides that the revenue from the tax levy can be used only for employer IMRF contributions and may not be transferred for any other use. The proceeds of the IMRF and Social Security levies must be accounted for separately and may not be commingled.

Section 7-173.2 of the Illinois Pension Code (40 ILCS 5/7-173.2) provides that under the Section 414(h) tax deferral plan (”employer pickup”) member contributions Members who participate in the Regular Plan contribute 4.50% of salary toward a future IMRF pension: 3.75% for the member and 0.75% for a surviving spouse pension. Members who participate in the SLEP plan contribute 7.50% of salary (on and after June 1, 2006) toward a future SLEP pension: 6.75% for the member and 0.75% for a surviving spouse pension. Before June 1, 2006, SLEP members contributed 6.50 percent of salary; 5.75 percent for the member and 0.75 percent for a surviving spouse pension. Members in the ECO plan contribute 7.50 of salary toward a future ECO pension: 6.75% for the member and 0.75% for a surviving spouse pension. must continue to be paid out of the same source of funds used for payment of member earnings and may not be paid from the IMRF tax levy.