Bill Text: IL HB4256 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-07-29 - Added Chief Co-Sponsor Rep. Ron Sandack [HB4256 Detail]

Download: Illinois-2015-HB4256-Introduced.html

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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
HB4256 LRB099 13263 RPS 37173 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 15-110 as follows:
(40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
Sec. 15-110. Basic compensation. "Basic compensation":
(a) For an employee who first became a participant before
the effective date of this amendatory Act of the 99th General
Assembly, "basic compensation" means the The gross basic rate
of salary or wages payable by an employer, including the value
of maintenance, board, living quarters, personal laundry or
other allowances furnished in lieu of salary which are
considered gross income under the Federal Internal Revenue
Code, the employee contributions required under Section
15-157, and the amount paid by any employer to a custodial
account for investment in regulated investment company stocks
for the benefit of the employee pursuant to "An Act in relation
to payments to custodial accounts for the benefit of employees
of public institutions of higher education", approved
September 9, 1983, and the amount of the premium payable by any
employer to an insurance company or companies on an annuity
contract, pursuant to the employee's election to accept a

HB4256 - 2 - LRB099 13263 RPS 37173 b
reduction in earnings or forego an increase in earnings under
Section 30c of "An Act in relation to State Finance," approved
June 10, 1919, as amended, or a tax-sheltered annuity plan
approved by any employer. Basic compensation does not include
(1) salary or wages for overtime or other extra service; (2)
prospective salary or wages under a summer teaching contract
not yet entered upon; and (3) overseas differential allowances,
quarters allowances, post allowances, educational allowances
and transportation allowances paid by an employer under a
contract with the federal government or its agencies for
services rendered in other countries. If an employee elects to
receive in lieu of cash salary or wages, fringe benefits which
are not taxable under the Federal Internal Revenue Code, the
amount of the cash salary or wages which is waived shall be
included in determining basic compensation.
(b) For an employee who first becomes a participant on or
after the effective date of this amendatory Act of the 99th
General Assembly, "basic compensation" means the gross basic
rate of salary or wages payable by an employer. Basic
compensation does not include (1) salary or wages for overtime
or other extra service; (2) prospective salary or wages under a
summer teaching contract not yet entered upon; (3) overseas
differential allowances, quarters allowances, post allowances,
educational allowances, and transportation allowances paid by
an employer under a contract with the federal government or its
agencies for services rendered in other countries; (4) the

HB4256 - 3 - LRB099 13263 RPS 37173 b
value of maintenance, board, living quarters, personal
laundry, or other allowances furnished in lieu of salary which
are considered gross income under the federal Internal Revenue
Code; (5) the employee contributions required under Section
15-157; and (6) the amount paid by any employer to a custodial
account for investment in regulated investment company stocks
for the benefit of the employee pursuant to "An Act in relation
to payments to custodial accounts for the benefit of employees
of public institutions of higher education", approved
September 9, 1983, and the amount of the premium payable by any
employer to an insurance company or companies on an annuity
contract, pursuant to the employee's election to accept a
reduction in earnings or forego an increase in earnings under
Section 30c of "An Act in relation to State Finance", approved
June 10, 1919, as amended, or a tax-sheltered annuity plan
approved by any employer. If an employee elects to receive in
lieu of cash salary or wages, fringe benefits which are not
taxable under the federal Internal Revenue Code, the amount of
the cash salary or wages which is waived shall not be included
in determining basic compensation.
(Source: P.A. 84-1308.)
Section 99. Effective date. This Act takes effect upon
becoming law.