Okla. Stat. tit. 74, § 74-1366

Employee's salary adjustment agreement.

A. The Office of Management and Enterprise Services shall

establish a flexible benefits plan in accordance with the provisions

of Section 1361 et seq. of this title. All participating employers

shall offer the plan to their eligible employees.

B. The Office shall interpret the plan and decide any matters

arising thereunder and may adopt such rules and procedures as it

deems necessary, desirable or appropriate in the administration of

the plan subject to the Administrative Procedures Act. All rules

Oklahoma Statutes - Title 74. State Government Page 843

and decisions of the Office shall be uniformly and consistently

applied to all participants in similar circumstances and shall be

conclusive and binding on all persons having an interest in the

plan. When making any decision or determination, the Office shall

be entitled to rely upon such information as may be furnished to it

by a participant, a participating employer, legal counsel, third

party administrator or the management of any individual benefit plan

which is incorporated in the plan.

C. The Office may contract with one or more firms or

organizations to administer or provide consulting services in regard

to all or any portion of the plan.

The Office shall solicit proposals on a competitive bid basis.

Contracts for the flexible benefits plan shall not be subject to the

provisions of The Oklahoma Central Purchasing Act, Section 85.1 et

seq. of this title. The Office shall promulgate rules establishing

appropriate competitive bidding criteria and procedures for

contracts awarded for flexible benefits plans.

When awarding a contract for services pursuant to this

subsection, the Office shall satisfy itself that the contractor has

no interests which would impair its ability to perform the tasks and

services required and that the contractor will exercise proper

independent judgment when performing its responsibilities under

Section 1361 et seq. of this title and under the contract.

D. Expenses included in an employee's salary adjustment

agreement pursuant to the flexible benefits 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;

2. Insurance premiums or retirement plan premiums or payments

which are supplemental to insurance or retirement programs offered

by this state or which are paid for under salary adjustment

agreements pursuant to the provisions of Section 34.70 of Title 62

of the Oklahoma Statutes;

3. Dependent care;

4. Medical care, as defined by the Office; and

5. All other eligible benefit programs offered under 26 United

States Code Section 125.

E. The amount by which an employee's salary is adjusted

pursuant to a salary adjustment agreement shall be excluded from

income in computation of income tax withholding, federal insurance

contributions act taxes, unemployment payments and workers'

compensation coverage. Such amount shall be included as income in

computation of state retirement contributions and benefits.

Provided, if the inclusions and exclusions provided in this

subsection conflict with the provisions of federal law or

Oklahoma Statutes - Title 74. State Government Page 844

regulations pertaining to flexible benefits plans, the Council is

authorized to modify or abolish such inclusions and exclusions.

F. 1. Legal representation shall be provided by the Office of

the Attorney General.

2. The executive director shall be the appointing authority and

agency head. All other positions and employees shall be classified

and subject to the provisions of the Merit System of Personnel

Administration except actuaries and other personnel and positions in

the unclassified service as provided in Section 840-5.5 of this

title.