(a) If an employee elects to participate in the cafeteria plan, the employee must execute a salary reduction agreement under which the employee’s monthly compensation will be reduced in an amount equal to the difference between:
(1) the employer contributions for basic and optional coverages; and
(2) the cost of the cafeteria plan coverages the board of trustees identifies as comparable to the basic and optional coverages for which the employee is eligible.
(b) The salary reduction agreement must also provide for an additional reduction in the employee’s compensation equal to the cost of voluntary coverages for which the employee has applied.

Terms Used In Texas Insurance Code 1551.309


(c) An employee who executes a salary reduction agreement for a group coverage plan included in the cafeteria plan elects to participate in the cafeteria plan and agrees to a salary reduction for the coverages for subsequent plan years unless the employee, during an annual enrollment period specified by the board of trustees, elects in a form and manner satisfactory to the board not to participate for the next plan year in the coverages.
(d) An employee who elects not to participate in the cafeteria plan group coverage plans may reenroll by executing a new salary reduction agreement during a subsequent annual enrollment period.
(e) A salary reduction agreement for cafeteria plan benefits, other than a group coverage plan, must be executed annually during the annual enrollment period.
(f) The employee shall pay any remaining portion of the cost of benefits that is not covered by the contributions for basic and optional coverages and the salary reduction under the cafeteria plan by executing a payroll deduction agreement.