[§78-61] Establishment. The employees of the State shall be afforded the opportunity to participate in a wage and salary reduction benefit program which qualifies as a cafeteria plan within the meaning of section 125 of the Internal Revenue Code of 1986, as amended. The cafeteria plan shall allow eligible employees to elect to reduce their pretax compensation in return for payment by the State of the expenses of eligible benefits. As used in this part, "employee" shall be as defined in section 87-1. [L 1989, c 63, pt of §2]