40 ILCS 5/13-502
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 13 - Metropolitan Water Reclamation District Retirement Fund

 (from Ch. 108 1/2, par. 13-502)Sec. 13-502. Employee contributions; deductions from salary.(a) Retirement annuity and child's annuity. Except as otherwise provided in this Section, there shall be deducted  from each payment of salary an amount equal to 7% of salary as the  employee's contribution for the retirement annuity, including  child's annuity, and 0.5% of salary as the employee's contribution for annual increases to the retirement annuity.(a-1) For employees who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code:(1) beginning with the first pay period paid on or     after January 1, 2013 and ending with the last pay period paid on or before December 31, 2013, employee contributions shall be 7.5% for the retirement annuity and 1.0% for annual increases for a total of 8.5%;(2) beginning with the first pay period paid on or     after  January 1, 2014 and ending with the last pay period paid on or before December 31, 2014, employee contributions shall be 8.0% for the retirement annuity and 1.5% for annual increases for a total of 9.5%;(3) beginning with the first pay period paid on or     after  January 1, 2015 and ending with the last pay period paid on or before the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, employee contributions shall be 8.5% for the retirement annuity and 1.5% for annual increases for a total of 10.0%; and(4) beginning with the first pay period paid on or     after  the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, and each pay period paid thereafter, employee contributions shall be 7.0% for the retirement annuity and 0.5% for annual increases for a total of 7.5%.(b) Surviving spouse's annuity.  There shall be deducted from each  payment of salary an amount equal to 1 1/2% of salary as the employee's  contribution for the surviving spouse's annuity and annual increases therefor. For employees that first became a member or a participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code, beginning with the first pay period paid on or after January 1, 2015 and ending with the last pay period paid on or before the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, there shall be deducted an additional 0.5% of salary for a total of 2.0% for the surviving spouse's annuity and annual increases.(c) Pickup of employee contributions.  The Employer may pick up employee  contributions required under subsections (a) and (b) of this Section.  If  contributions are picked up they shall be treated as Employer contributions  in determining tax treatment under the United States Internal Revenue Code,  and shall not be included as gross income of the employee until such time  as they are distributed.  The Employer shall pay these employee  contributions from the same source of funds used in paying salary to the  employee.  The Employer may pick up these contributions by a reduction in  the cash salary of the employee 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 employee contributions are picked up they shall be  treated for all purposes of this Article 13, including Sections 13-503 and  13-601, in the same manner and to the same extent as employee contributions  made prior to the date picked up.(d) Subject to the requirements of federal law, the Employer shall  pick up optional contributions that the employee has elected to pay to the  Fund under Section 13-304.1, and the contributions so picked up  shall be treated as employer contributions for the purposes of determining  federal tax treatment.  The Employer shall pick up the contributions by a  reduction in the cash salary of the employee and shall pay the contributions  from the same fund that is used to pay earnings to the employee.  The Employer  shall, however, continue to withhold federal and State income taxes based upon  contributions made under Section 13-304.1 until the Internal Revenue Service or  the federal courts rule that pursuant to Section 414(h) of the U.S. Internal  Revenue Code of 1986, as amended, these contributions shall not be included as  gross income of the employee until such time as they are distributed or made  available.(e) Each employee is deemed to consent and agree to the deductions from  compensation provided for in this Article.(f) Subject to the requirements of federal law, the Employer shall pick up  contributions that a commissioner has elected to pay to the Fund under Section  13-314, and the contributions so picked up shall be treated as Employer  contributions for the purposes of determining federal tax treatment.  The  Employer shall pick up the contributions by a reduction in the cash salary of  the commissioner and shall pay the contributions from the same fund as is  used to pay earnings to the commissioner.  The Employer shall, however,  continue to withhold federal and State income taxes based upon contributions  made under Section 13-314 until the U.S. Internal Revenue Service or the  federal courts rule that pursuant to Section 414(h) of the Internal Revenue  Code of 1986, as amended, these contributions shall not be included as gross  income of the employee until such time as they are distributed or made  available.    (Source: P.A. 97-894, eff. 8-3-12.)