2011 New Mexico Statutes
Chapter 10: Public Officers and Employees
Article 7: Compensation and Working Conditions Generally, 10-7-1 through 10-7-21
Section 10-7-18: Status of salary reduction.
10-7-18. Status of salary reduction.
A. The amount by which an eligible public employee's salary is reduced pursuant to a salary reduction agreement shall continue to be included as compensation for the purpose of computing retirement benefits under the Public Employees Retirement Act [10-11-1 NMSA 1978], the Educational Retirement Act [22-11-1 NMSA 1978] and the Judicial Retirement Act [10-12B-1 NMSA 1978]; provided this inclusion does not conflict with federal law, including federal regulations, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code, Section 125 pertaining to cafeteria plans.
B. The amount by which an eligible public employee's salary is reduced pursuant to a salary reduction agreement shall not be considered as gross income for purposes of computing New Mexico income tax, state unemployment tax and state worker's compensation and federal income taxes to be withheld and paid on behalf of the employee.
Disclaimer: These codes may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
