| Topic: | Employers |
| Subtopic: | Employer Pickup of IMRF Employee Contributions |
| Date: | 3/27/1981 |
| Status: | Active |
WHEREAS, Section 7-173.2 of the Illinois Pension Code permits employers to make payment of employee contributions to the Illinois Municipal Retirement Fund; and
WHEREAS, Section 414(h) of the Internal Revenue Code provides that employer paid (picked-up) employee contributions are excluded in taxable gross income until distributed as a refund, annuity, or death benefit, and
WHEREAS, it is desirable that the employee’s contributions to the Illinois Municipal Retirement Fund be paid by the employer;
RESOLVED by the Board of Trustees of the Illinois Municipal Retirement Fund that the employee contributions to the Illinois Municipal Retirement Fund shall be paid by the Illinois Municipal Retirement Fund on behalf of all the employees enrolled in the Fund;
FURTHER RESOLVED that the payment shall be made by reducing the amount of gross earnings payable to employees by the amount of the contributions and making payment of this amount directly to the Fund;
FURTHER RESOLVED that the payment of employee contributions provided shall be effective for all compensation paid to employees beginning with January 1, 1982.