MCA Chapter 17

in effect

Miss. Code Ann. § 25-17-1 Definitions.

For purposes of this chapter: “State agency” means every state institution, board, commission, council, department or unit thereof created by the Mississippi Constitution or statutes. “Local governmental entity” means any county, municipality, school district, public hospital or other political subdivision of the state. “Cafeteria plan” means a written plan providing benefits to eligible employees which meets the requirements of Section 125 et seq. of the Internal Revenue Code and regulations thereunder. “Salary reduction agreement” means a written agreement between an eligible employee and a state agency or local governmental entity whereby the employee agrees to reduce his or her salary by a stated amount or an amount equal to the cost of benefits selected under a cafeteria plan and the state agency or local governmental entity agrees to contribute such amount to cover the cost of the benefits selected by the eligible employee. “Eligible employee” means an officer or employee of a state agency or local governmental entity who elects to participate in a cafeteria plan described in paragraph (c) of this section. The term includes state agency officers and employees whether or not engaged in state service, as defined in Section 25-9-107, Mississippi Code of 1972. The term does not include individuals: Engaged as independent contractors; or Whose periods of employment are on an intermittent or irregular basis, or who are employed on less than half-time basis unless the individual is employed in a position classified as a job-sharing position.

Miss. Code Ann. § 25-17-3 Authority of state agency or local government entity to adopt cafeteria fringe benefit plan.

Notwithstanding any other benefit plan offered to any eligible employee of a state agency or local governmental entity, all state agencies shall, and any local governmental entity may contract for and adopt a benefit plan that meets the requirements of a cafeteria plan as defined in Section 125 et seq. of the Internal Revenue Code of 1986, and regulations thereunder, for the benefit of eligible employees and their dependents. However, the maximum benefit available under a health flexible spending account shall be Ten Thousand Dollars ($10,000.00) per participating employee per plan year, unless federal Internal Revenue Service regulations allow that the available benefit at any point in time may be limited by the premium paid as of that point in time. Any state agency or local governmental entity may contract for insurance to cover its potential for loss under a health flexible spending account.

Miss. Code Ann. § 25-17-5 Payment of cafeteria plan costs; salary reduction agreements.

Contributions to cover the cost of benefits provided under a cafeteria plan authorized by Section 25-17-3, Mississippi Code of 1972, shall be paid by the eligible employee pursuant to a salary reduction agreement. The state agency or local governmental entity shall be authorized to pay part or all of the administrative expenses therefor. The state agency or local governmental entity may agree with an eligible employee that the employee’s salary shall be reduced monthly by an amount equal to the cost of benefits selected and to be paid for by the eligible employee. Such reduction shall be made pursuant to salary reduction agreements entered into between eligible employees and the state agency or local governmental entity. The state agency or local governmental entity is authorized, upon request of an eligible employee, to reduce each month the salary of the eligible employee by an amount of money, or the cost of selected benefits, designated by that employee in the salary reduction agreement entered into between the employee and the state agency or local governmental entity.

Miss. Code Ann. § 25-17-7 Treatment of amounts by which employees’ salaries are reduced for purposes of retirement benefit and income tax computations.

The amount by which an eligible employee’s salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5, Mississippi Code of 1972, shall continue to be included as compensation for the purpose of computing state retirement benefits, provided this inclusion does not conflict with federal law, including federal regulations and federal administrative interpretations thereunder, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code Section 125 cafeteria plans. The amount by which an eligible employee’s salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5, Mississippi Code of 1972, shall not be considered as current taxable income for purposes of computing Mississippi income taxes to be withheld and paid on behalf of the employee.

Miss. Code Ann. § 25-17-9 Requirements with respect to providers of cafeteria plans.

For the purpose of this section, “provider” means any insurance company, corporation, person or other entity which provides benefits included in, or administrative services related to, cafeteria plans. The State Auditor shall compile a list of providers of cafeteria plans which shall contain those providers he deems acceptable to provide benefits or services related to a cafeteria plan of a state agency or local governmental entity. To be deemed acceptable, a provider shall: Be authorized to do business in this state or be a corporation organized or existing under the laws of this state; Maintain an office in this state with sufficient staff and equipment to render the contracted services for plans which are subject to this chapter as required by the State Auditor; Obtain and maintain a comprehensive dishonesty, destruction and disappearance bond in the amount designated by the State Auditor (a copy of which shall be maintained on file at all times in the office of the State Auditor, who shall be promptly notified by the surety on such bond of any change in or cancellation of such bond) unless the provider uses the type of administration which does not require the accumulation or escrow of employees’ or employers’ monies for reimbursement purposes; and Comply with the guidelines established by the State Auditor pertaining to state agencies’ or local governmental entities’ cafeteria plans. The State Auditor shall revise the list annually unless an earlier revision is necessary to remove a provider who does not satisfy the requirements set forth in paragraphs (a) through (d) of this subsection. Only providers who appear on the most recent list compiled by the State Auditor shall, directly or indirectly, provide benefits included in or administrative services related to cafeteria plans of a state agency or local governmental entity; provided, however, that the State Tax Commission may, and is hereby authorized to, administer all or any part of the cafeteria plan which it has adopted, including providing benefits and performing administrative services relating thereto, without the use of a provider, and the State Tax Commission shall be exempt from paragraphs (a), (b) and (c) of subsection (2) of this section in administering the cafeteria plan. If the State Tax Commission administers only part of the cafeteria plan internally, that part of the plan administered outside of the State Tax Commission shall be administered by a provider who appears on the most recent list of providers compiled by the State Auditor, and such provider shall meet all of the requirements of subsection (2) of this section. A state agency or local governmental entity shall promptly notify the State Auditor of any complaint against a provider. All cafeteria plans authorized in Section 25-17-3, Mississippi Code of 1972, shall be in compliance with current Internal Revenue Service requirements promulgated in Sections 89 and 125 of the Internal Revenue Code. Documentation of such compliance shall be on file in the office of the State Auditor. The State Auditor may promulgate rules and regulations necessary to implement this section.

Miss. Code Ann. § 25-17-11 Requirements with respect to providers of qualification and discrimination testing services.

For the purpose of this section as it pertains to Section 89 of the Internal Revenue Code, “administrator” means any corporation, person or other entity which provides qualification and discrimination testing services in compliance with Section 89 of the Internal Revenue Code. The State Auditor shall compile a list of administrators he deems acceptable to provide to state agencies and local governmental entities the services described in subsection (1) of this section. To be deemed acceptable, an administrator shall: Be authorized to do business in this state or be a corporation organized or existing under the laws of this state; Maintain an office in this state with sufficient staff and equipment to render the services which are subject to this chapter as required by the State Auditor; and Comply with the guidelines established by the State Auditor pertaining to state agencies’ or local governmental entities’ compliance with Section 89 of the Internal Revenue Code. The State Auditor shall revise the list annually unless an earlier revision is necessary to remove an administrator who does not satisfy the requirements set forth in paragraphs (a) through (c) of this subsection. Only administrators who appear on the most recent list compiled by the State Auditor shall, directly or indirectly, provide qualification and discrimination testing services to a state agency or local governmental entity. A state agency or local governmental entity shall promptly notify the State Auditor of any complaint against an administrator. The State Auditor may promulgate rules and regulations necessary to implement this section.