Section 125 cafeteria plans may be established under Section 125 of the Internal Revenue Code. Most options under a cafeteria plan are not reportable as IMRF earnings. Any employer may elect to include compensation paid under a cafeteria plan by adopting a governing body resolution (IMRF Form 6.72, "Resolution - To Include Compensation Paid Under an IRC Section 125 Plan as IMRF Earnings"). If such a resolution is adopted, most options under a cafeteria plan will be considered IMRF earnings and must be reported to IMRF.
Compensation directed into a premium conversion plan or flexible spending account is not IMRF earnings unless the employer elects to include it in earnings by governing body resolution (IMRF Form 6.72).
These resolutions, when adopted, may not be changed or revoked for current employees but only for new hires.
For more information on what is considered IMRF earnings, refer to Section 3, Part 3.