Okla. Stat. tit. 70, § 70-26-104

of cafeteria plans.

A. Each fiscal year, the Legislature shall appropriate adequate

funding to the State Board of Education and the State Board of

Career and Technology Education for the purpose of providing a

flexible benefit allowance to school district employees pursuant to

this act. Unless the Legislature appropriates adequate funding

specifically for the purpose of providing a flexible benefit

allowance to school district employees, the Oklahoma State Board of

Education shall allocate from the funds appropriated to the Oklahoma

State Board of Education for the support of public school activities

an amount to fully fund the flexible benefit allowance, which shall

occur first prior to allocating the funds for any other purpose.

The amount appropriated for funding and disbursed to school

districts shall be calculated by multiplying the number of eligible

school district employees employed by school districts which are

participating in the health insurance plan offered by the Oklahoma

Employees Insurance and Benefits Board or are self-insured as

counted in February of each year by the amount of the flexible

benefit allowance credited to the eligible school employees as

established in Section 26-105 of this title. Each Board shall

disburse the total amount appropriated for funding the flexible

benefit allowance to school districts during the fiscal year. From

the total amount appropriated, each Board shall disburse the

appropriate amounts, based on the number of eligible school district

employees employed by that school district, to each school district.

Oklahoma Statutes - Title 70. Schools Page 964

B. Every school district shall establish or make available to

school district employees a cafeteria plan pursuant to 26 U.S.C.

Section 125 of the United States Code. The plan shall offer, as a

benefit, major medical health care plan coverage.

C. The flexible benefit allowance amount established pursuant

to Section 26-105 of this title shall be credited to each eligible

school district employee. School district employees shall elect

whether to use the flexible benefit allowance to pay for coverage in

the health insurance plan offered by the Oklahoma Employees

Insurance and Benefits Board or the self-insured plan offered by the

school district and may receive the excess flexible benefit

allowance as taxable compensation as provided in Section 26-105 of

this title.

D. The administrator of the cafeteria plan shall maintain a

separate account for each participating school district employee.

School districts shall forward the school district employee flexible

benefit allowance amounts to the administrator for elected purchases

of cafeteria plan benefits.

E. Expenses included in an employee's salary adjustment

agreement pursuant to the cafeteria plan shall be limited to

expenses for:

1. Premiums for any health insurance, health maintenance

organization, life insurance, long term disability insurance, dental

insurance or high deductible health benefit plan offered to

employees and their dependents; and

2. All other eligible benefit programs offered under 26 U.S.C.

Section 125 of the United States Code.

F. The flexible benefit allowance amount established in Section

26-105 of this title shall not be included as income in computation

of state retirement contributions and benefits or as part of the

Minimum Salary Schedule for teachers established in Section 18-

114.12 of this title. School districts shall not consider the

flexible benefit allowance amount as income for eligible support

employees and thereby shall not reduce the salary of an eligible

support employee.