Section 26-104 - Funding of flexible benefit allowances - Establishment of cafeteria plansA. 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.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; and2. 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 18114.12 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.Okla. Stat. tit. 70, § 26-104
Amended by Laws 2024 , c. 245, s. 2, eff. 11/1/2024. Laws 1998 , SB 902, c. 380, § 6, emerg. eff. 6/9/1998; Amended by Laws 1999 , HB 1363, c. 334, § 2, emerg. eff. 7/1/1999; Amended by Laws 2001 , HB 1214, c. 33, § 122, emerg. eff. 7/1/2001; Amended by Laws 2002 , SB 1003, c. 418, § 1, emerg. eff. 7/1/2002; Amended Laws by 2007, HB 1674, c. 180, § 1, emerg. eff. 5/31/2007; Amended by Laws 2012 , HB 3056, c. 321, § 1, emerg. eff. 7/1/2012.