Sec. 10-183i. Member's voluntary contributions. Limitations.
367 words·~2 min read·
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(a)A member may make voluntary contributions to the system and may, no more than once, withdraw such voluntary contributions from the system under rules of the board. Any voluntary contribution shall be made solely by payroll deduction of an amount subject to state, federal or local tax in the tax or income year in which such voluntary contribution is made. Voluntary contributions shall be subject to the limitations imposed under Section 415(c) of the Internal Revenue Code for the applicable limitation year. Such contributions shall earn credited interest. Upon retirement such member shall elect to receive the accumulated contributions plus credited interest either in a lump sum or in the form of an actuarially equivalent annuity for life. Such lump sum, if elected, shall be paid not later than three months after the effective date of retirement, except the board may delay payment of such lump sum in the case of extenuating circumstances. If such delay occurs, the board shall submit a written notice to the member explaining the nature of the extenuating circumstances and an estimate as to when such lump sum shall be paid. Payment of such annuity, if elected, shall commence when the first payment of such member's other retirement benefit is made. If such member dies before the effective date of his or her retirement, the accumulated contributions plus credited interest shall be paid to such member's designated beneficiary.
(b)For purposes of applying the limitations of Section 415(c) of the Internal Revenue Code under subsection
(a)of this section, compensation shall include
(1)wages within the meaning of Section 3401(a) of the Internal Revenue Code, for purposes of income tax withholding at the source,
(2)amounts that would be included in wages except for elections made under Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b) of the Internal Revenue Code, and
(3)any other payments of compensation to a member by such member's employer for which the employer is required to furnish the member a written statement under Sections 6041(d), 6051(a)(3) and 6052 of the Internal Revenue Code, but such compensation shall not exceed the maximum amount allowed under Section 401(a)(17) of the Internal Revenue Code for the applicable limitation year.