New Mexico § 10-7-15 - Definitions

§ 10-7-15. Definitions

As used in the Cafeteria Plan Act: A. “agency” means the state of New Mexico, any of its political subdivisions, tax

supported educational institutions or a local public school district; B. “cafeteria plan” means a written plan as defined in 26 U.S.C. 125 under which all participants are eligible public employees and the participants are

allowed to choose among two or more benefits consisting of cash and statutory nontaxable

benefits; C. “eligible public employee” means any public employee who elects to participate

in a cafeteria plan as provided in the Cafeteria Plan Act but 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; D. “public employee” means any officer or employee of an agency to whom a salary is

paid from public funds for services rendered; E. “salary reduction agreement” means a written agreement between an eligible public

employee and his agency employer 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 agency agrees to contribute that amount to cover the cost

of the benefits selected by the eligible public employee; and F. “statutory nontaxable benefits” means any benefits that are not includable in the

gross income of the public employee by reason of an express provision of the Internal

Revenue Code, and such benefits may include but not be limited to: group life insurance

not exceeding fifty thousand dollars ($50,000); disability benefits; accident and

health plans; group legal services plans and dependent care services.