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125 Plan Compensation Reduction Agreement Masking University offers a 125 Flexible Benefit Plan (125 Plan). Details about the 125 Plan are available in the 125 Flexible Benefit Plan Policy. Select
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125 plan compensation reduction refers to the process where an employee's salary is reduced in order to contribute to a Section 125 cafeteria plan.
Employees who wish to participate in a Section 125 cafeteria plan are required to file a 125 plan compensation reduction.
Employees can fill out 125 plan compensation reduction forms provided by their employer, indicating the amount they wish to contribute to the Section 125 cafeteria plan.
The purpose of 125 plan compensation reduction is to allow employees to contribute pre-tax dollars to certain benefits offered through a Section 125 cafeteria plan.
Employees must report their requested contribution amount and any changes made to their salary as a result of participating in a Section 125 cafeteria plan.
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