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125 Plan For A City

Guest Alison Williams

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Guest Alison Williams

If the employer is a government agency (a city) and they have a cafeteria plan can the city manager participate? I would think that he would be considered a highly compensated employee as a result of his job responsibilities and duties, however, his wages are not in excess of $130,000. Are there other items I need to consider in determining whether he can particpate? Must he be excluded from participation altogether?

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