A. The amount by which an eligible public employee's salary is reduced pursuant to a salary reduction agreement shall continue to be included as compensation for the purpose of computing retirement benefits under the Public Employees Retirement Act [Chapter 10, Article 11 NMSA 1978], the Educational Retirement Act [Chapter 22, Article 11 NMSA 1978] and the Judicial Retirement Act [Chapter 10, Article 12B NMSA 1978]; provided this inclusion does not conflict with federal law, including federal regulations, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code, Section 125 pertaining to cafeteria plans.
B. The amount by which an eligible public employee's salary is reduced pursuant to a salary reduction agreement shall not be considered as gross income for purposes of computing New Mexico income tax, state unemployment tax and state worker's compensation and federal income taxes to be withheld and paid on behalf of the employee.
History: Laws 1987, ch. 289, § 5.
Cross references. — For the Federal Insurance Contributions Act, see 26 U.S.C. § 3101 et seq.
For Section 125 of the Internal Revenue Code, see 26 U.S.C. § 125.
Structure New Mexico Statutes
Chapter 10 - Public Officers and Employees
Article 7 - Compensation and Working Conditions Generally
Section 10-7-2 - Salaries and wages; rules; direct deposit.
Section 10-7-3 - [Inapplicability of act.]
Section 10-7-4 - Group insurance; cafeteria plan; contributions from public funds.
Section 10-7-4.1 - Children, youth and families department; group life insurance.
Section 10-7-5 - [Premiums; deduction from salaries.]
Section 10-7-5.1 - Local public bodies; group health and group life insurance.
Section 10-7-6 - [Repeal and saving clause.]
Section 10-7-7 - [Old-age benefits under Social Security Act.]
Section 10-7-8 - Annuities and deferred compensation plans; reductions from gross salaries.
Section 10-7-9 - Minimum salary rate.
Section 10-7-10 - Accumulated sick leave; payment of certain excess amounts.
Section 10-7-11 - Accumulated sick leave prior to retirement; payment of certain excess amounts.
Section 10-7-12 - Government cost savings incentive award.
Section 10-7-13 - Leave; coordination with workmen's compensation benefits.
Section 10-7-14 - Short title.
Section 10-7-15 - Definitions.
Section 10-7-16 - Cafeteria plan; optional.
Section 10-7-17 - Salary reduction agreements.
Section 10-7-18 - Status of salary reduction.
Section 10-7-19 - Applicability to deferred compensation plans.
Section 10-7-20 - Qualified transportation fringe benefit.
Section 10-7-21 - Undercover agents; life insurance benefits.