Arizona Laws 38-651.05. Flexible or cafeteria employee benefit plan; fund
A. The department of administration is authorized to establish a flexible or cafeteria employee benefit plan that may provide for deductions or salary reductions for group life insurance, disability insurance, group accidental death and dismemberment insurance, long-term care coverage, health and accident insurance or other authorized employee benefits, which meet the requirements of the United States internal revenue code of 1986 and regulations thereunder and to adopt rules for its administration.
Terms Used In Arizona Laws 38-651.05
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. The department of administration shall determine the frequency of payroll deductions for purposes of this section for those state officers or employees under payroll systems under the direction of the department of administration. For all other state officers or employees under other state payroll systems, the appropriate state agency, board, commission or institution shall determine the frequency of payroll deductions for purposes of this section.
C. The flexible or cafeteria employee benefit plan fund is established. Monies received by the department of administration from employee contributions to the flexible or cafeteria employee benefit plan established pursuant to subsection A of this section shall be deposited in the fund or deposited directly with a third party under contract with the department of administration to administer the plan. Investment earnings shall be deposited to the credit of the fund.
D. The department of administration shall use any monies remaining in the fund or on deposit with a third party under contract to administer the plan at the end of each fiscal year in the following priority:
1. To cover the costs to this state of administering the flexible or cafeteria employee benefit plan under subsection A of this section.
2. After payment of the administrative costs, the remainder shall be used to reduce in a uniform manner the employee and employer contributions to benefits included under a flexible or cafeteria employee benefit plan.