2023 Illinois Compiled Statutes › Chapter 5 - GENERAL PROVISIONS › 5 ILCS 365/ - State Salary and Annuity Withholding Act.

(5 ILCS 365/1) (from Ch. 127, par. 351)
Sec. 1. 
		
		This Act shall be known and may be cited as the State Salary and Annuity Withholding Act.
(Source: Laws 1963, p. 2707.)
(5 ILCS 365/2) (from Ch. 127, par. 352)
Sec. 2. 
		Definitions. 
		As used in this Act, unless the context otherwise
requires:
"Office" means the State Comptroller, the Board of Trustees of the State
Universities Retirement System, or the Board of Trustees of
any of the following institutions: the University of Illinois, Southern
Illinois University,
Chicago State University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois University,
Northern Illinois University, and Western Illinois University.
"Department" means any department, board, commission, institution,
officer, court, or agency of State government, other than
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois University,
Northern Illinois University, and Western Illinois University,
receiving State appropriations and having the power to certify payrolls to
the Comptroller authorizing payments of salary or wages from
appropriations from any State fund or from trust funds held by the State
Treasurer; and the Board of Trustees of the General Assembly Retirement
System, the Board of Trustees of the State Employees' Retirement System of
Illinois, the Board of Trustees of the Teachers' Retirement System of the State
of Illinois, and the Board of Trustees of the Judges Retirement System of
Illinois created respectively by Articles 2, 14, 16, and 18 of the Illinois
Pension Code.
"Employee" means any regular officer or employee who receives salary or
wages for personal service rendered to the State of Illinois and, for the
purpose of deduction for the purchase of United States Savings Bonds,
includes any State contractual employee.
"Annuitant" means a person receiving a retirement annuity or disability
benefits under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code.
"Annuity" means the retirement annuity or disability benefits received by an
annuitant.
(Source: P.A. 89-4, eff. 1-1-96; 90-14, eff. 7-1-97; 90-448, eff. 8-16-97.)
(5 ILCS 365/3) (from Ch. 127, par. 353)
Sec. 3. 
		
		Whenever a Department whose payroll is processed by the Comptroller,
or an Office other than the Comptroller, is authorized in writing
by a State employee or
annuitant to withhold a specified portion of such employee's or annuitant's
salary, wages or annuity for a designated period of time for any one or
more of the purposes specified in Section 4, such Department shall direct
the Comptroller to withhold and such Office other than the Comptroller
shall withhold
from such employee's salary, wages or annuity for each pay period the
amount specified in the authorization during the period of time therein
designated.
(Source: P.A. 82-182.)
(5 ILCS 365/4) (from Ch. 127, par. 354)
Sec. 4. Authorization of withholding. An employee or annuitant may
authorize the withholding of a portion of his salary, wages, or annuity for any
one or more of the following purposes:
(1) for purchase of United States Savings Bonds;
(2) for payment of premiums on life or accident and     health insurance as defined in Section 4 of the "Illinois Insurance Code", approved June 29, 1937, as amended, and for payment of premiums on policies of automobile insurance as defined in Section 143.13 of the "Illinois Insurance Code", as amended, and the personal multiperil coverages commonly known as homeowner's insurance.  However, no portion of salaries, wages or annuities may be withheld to pay premiums on automobile, homeowner's, life or accident and health insurance policies issued by any one insurance company or insurance service company unless a minimum of 100 employees or annuitants insured by that company authorize the withholding by an Office within 6 months after such withholding begins.  If such minimum is not satisfied the Office may discontinue withholding for such company. For any insurance company or insurance service company which has not previously had withholding, the Office may allow withholding for premiums, where less than 100 policies have been written, to cover a probationary period.  An insurance company which has discontinued withholding may reinstate it upon presentation of facts indicating new management or re-organization satisfactory to the Office;
(3) for payment to any labor organization designated     by the employee;
(4) for payment of dues to any association the     membership of which consists of State employees and former State employees;
(5) for deposit in any credit union, in which State     employees are within the field of membership as a result of their employment;
(6) for payment to or for the benefit of an     institution of higher education by an employee of that institution;
(7) for payment of parking fees at the parking     facilities located on the Urbana-Champaign campus of the University of Illinois;
(8) for voluntary payment to the State of Illinois of     amounts then due and payable to the State;
(9) for investment purchases made as a participant or     contributor to qualified tuition programs established pursuant to Section 529 of the Internal Revenue Code or qualified ABLE programs established pursuant to Section 529A of the Internal Revenue Code;
(10) for voluntary payment to the Illinois Department     of Revenue of amounts due or to become due under the Illinois Income Tax Act;
(11) for payment of optional contributions to a     retirement system subject to the provisions of the Illinois Pension Code;
(12) for contributions to organizations found     qualified by the State Comptroller under the requirements set forth in the Voluntary Payroll Deductions Act of 1983;
(13) for payment of fringe benefit contributions to     employee benefit trust funds (whether such employee benefit trust funds are governed by the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §1001 et seq. or not) for State contractual employees hired through labor organizations and working pursuant to a signed agreement between a labor organization and a State agency, whether subject to the Illinois Prevailing Wage Act or not; this item (13) is not intended to limit employee benefit trust funds and the contributions to be made thereto to be limited to those which are encompassed for purposes of computing the prevailing wage in any particular locale, but rather such employee benefit trusts are intended to include contributions to be made to such funds that are intended to assist in training, building and maintenance, industry advancement, and the like, including but not limited to those benefit trust funds such as pension and welfare that are normally computed in the prevailing wage rates and which otherwise would be subject to contribution obligations by private employers that are signatory to agreements with labor organizations;
(14) for voluntary payment as part of the Illinois     Gives Initiative under Section 26 of the State Comptroller Act; or
(15)   for payment of parking fees at the underground     facility located south of the William G. Stratton State Office Building in Springfield or the parking ramp located at 401 South College Street, west of the William G. Stratton State Office Building in Springfield. (Source: P.A. 99-166, eff. 7-28-15; 100-763, eff. 8-10-18.)
(5 ILCS 365/5) (from Ch. 127, par. 355)
Sec. 5. 
		
		Each
Office and Department that prepares a payroll voucher shall provide to
its employees forms authorizing the withholding from salary,
wages or annuity as provided for by this Act.
(Source: P.A. 83-163.)
(5 ILCS 365/6) (from Ch. 127, par. 356)
Sec. 6. 
		
		Sufficient copies of any authorization provided for by this Act
shall be executed by the employee to enable the Department that prepares the voucher
on which the employee's name appears to transmit a copy thereof
to any Department required to certify or approve
such vouchers, and the Department so preparing the voucher shall make such
transmittals. Copies of such authorization need not be transmitted to the
Department of Central Management Services.  Authorizations for withholding
and the termination of withholding for the purchase of United States Savings
Bonds shall be filed with the Comptroller.
Each Department and Office, in the preparation of vouchers, or payroll
disbursing, is authorized and directed, in addition to other requirements
of law, to indicate thereon:
(1) the amount or amounts to be withheld from the     salary, wages or annuity of each employee or annuitant that has authorized such withholding under this Act;
(2) the purpose or purposes of such withholding; and
(3) the net amount payable to the employee or     annuitant.
Voucher forms designed and approved by the comptroller under the
provisions of Section 9a of "An Act in relation to State finance", approved
June 10, 1919, as heretofore or hereafter amended, shall be so designed as
to meet the requirements of this Section.
Any Department required to approve vouchers shall approve vouchers
prepared in accordance with this Act if they meet the requirements of other
laws applicable thereto.
(Source: P.A. 82-789.)
(5 ILCS 365/7) (from Ch. 127, par. 357)
Sec. 7. 
		
		Any
 Office in making payment for any item of salary, wages or annuity
on a voucher or in disbursing a payroll shall deduct any amount or amounts
authorized to be withheld under this Act as certified in such voucher or
disbursed in such payroll and shall make payment
to the employee or annuitant for the net amount payable to the employee
or annuitant.  Where payment is made by warrant, information concerning
the amount or amounts withheld and the purpose of each such withholding
shall be provided on a detachable stub.  Where payment is made by the Comptroller
by direct deposit, the Comptroller may distribute statements of the amounts
and purposes of withholding from such payments intermittently, not less than annually.
Each Office shall create a separate trust fund for the purpose of withholding
from employees for the purchase of United States Savings Bonds as provided
by this Act. The State Treasurer shall be ex officio, trustee and custodian
of such trust fund created by the State Comptroller. The Comptroller shall
direct the State Treasurer to deposit to the trust fund the amounts authorized
to be withheld for United States Savings Bonds as certified on each payroll
or annuitant's voucher.
Such trust fund and each individual employee or annuitant account
created by the Comptroller shall be subject to audit the same as funds and
accounts belonging to the State of Illinois and shall be protected by the
official bond given by the State Treasurer. Trust funds and individual
employee or annuitant accounts created by an Office other than the
Comptroller shall be subject to audit in the same manner as other funds.
(Source: P.A. 83-162.)
(5 ILCS 365/8) (from Ch. 127, par. 358)
Sec. 8. Payment of certain amounts withheld.
(a) If a withholding authorization is for the purpose of payment of
insurance premiums or for payment to a labor union, each Office shall make
payments, as soon as payroll warrants are prepared and verified, on behalf
of the employee or annuitant to the payee named in the authorization the
amount specified in the authorization.  Such payments shall be made by warrants
prepared at the time the payroll is processed.
(b) If a withholding authorization is for the purpose of purchasing
United States Savings Bonds, each Office, whenever a sufficient sum has
accumulated in the employee's account to purchase a bond of the denomination
directed by the employee in his authorization, shall purchase such a United
States Savings Bond in the name designated by the employee and deliver it to
the employee.
(c) If a withholding authorization is for the purpose of payment of
parking fees pursuant to paragraph 7 of Section 4, the State Comptroller shall
deposit the amount withheld in the
State Parking Facility Maintenance Fund in the State Treasury.
(d) If a withholding authorization is for the purpose of payment of
amounts due or to become due under the Illinois Income Tax Act, the Office
shall pay the amounts withheld without delay directly to the Department of
Revenue or to a depositary designated by the Department of Revenue.
(e) If a withholding authorization is for the purpose of payment of parking fees under paragraph (15) of Section 4 of this Act, the State Comptroller shall deposit the entire amount withheld in the State Parking Facility Maintenance Fund in the State treasury.
(Source: P.A. 99-166, eff. 7-28-15.)
(5 ILCS 365/9) (from Ch. 127, par. 359)
Sec. 9. 
		
		Any authorization to withhold from the salary, wages or annuity of
an employee or annuitant shall terminate and such withholding shall cease
upon the happening of any of the following events:
(1) termination of employment or termination of     payment of an annuity, as the case may be;
(2) written notice by the employee or annuitant of     cancellation of such former authorization, except that an authorization to withhold for the payment of optional contributions to a retirement system through an employer pickup is irrevocable;
(3) expiration of the time during which such     withholding was authorized;
(4) when the total amount authorized to be withheld     has been so withheld.
Upon termination of authorization to purchase United States Savings
Bonds, any amount withheld from the salary or wages of an employee for such
purpose and which has not been so used shall be immediately remitted by
each Office to the person from whose salary or wages such amount was
withheld.
(Source: P.A. 90-448, eff. 8-16-97.)
(5 ILCS 365/10) (from Ch. 127, par. 360)
Sec. 10. 
		
		Each Office shall promulgate reasonable rules deemed necessary for
the administration of this Act, which rules and any changes thereof shall
be filed and become effective pursuant to the provisions of "An Act
concerning administrative rules", approved June 14, 1951, as heretofore or
hereafter amended.
(Source: Laws 1965, p. 1244.)