(1) If an employer has a plan or program under which it contributes on behalf of its employees a certain dollar amount, which can be used by the employee to purchase optional nontaxable benefits, but there is no ability for the employee to receive the employer contribution in cash or other taxable benefit, the board will not consider the employer contribution an elective contribution under a cafeteria plan that would be includible in gross income but for IRC section 125, and will not include the employer contribution as compensation for purposes of PERS, JRS, HPORS, SRS, GWPORS, MPORS, and FURS.