“We call it BASIC FLEX, but it goes my many names such as Premium Only Plans (POP), Premium Conversion Plans, Cash-In-Lieu-Of Plans, Salary Reduction Plans, Flexible Benefit Plans, Flexible Spending Accounts, or Cafeteria Plans. They are all regulated by Internal Revenue Code Section 125. This code allows eligible employees to pay for certain fringe benefits that are sponsored by their employer with pre-tax dollars.”

Basic (2005). What is a section 125- cafeteria plan? Retrieved on Aug 3, 2010, from