MAY 14, 1986
Concerning three questions. 1. To what extent can public employers - city and county employers, school districts and state employers - negotiate lower salaries with their employees? 2. [D]oes "Earnable Compensation" as defined in S.C. Code § 9-1-10(16) include amounts that an employee voluntarily elects be reduced from his salary to fund Cafeteria Plan benefits under IRC § l25? 3. Would the voluntary reduction of a state employee's salary or wages below $2.65 an hour violate S.C. Code § 8-11-140 if such reduction is used by his employer to purchase Cafeteria Plan benefits under IRC § 125?
Requested by: Wayne D. Pruitt, CPA, Controller, South Carolina Retirement System
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