Miss. Code Ann. § 25-17-7: Miss. Code Ann. § 25-17-7

(1) The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5, Mississippi Code of 1972 , shall continue to be included as compensation for the purpose of computing state retirement benefits, provided this inclusion does not conflict with federal law, including federal regulations and federal administrative interpretations thereunder, pertaining to the Federal Insurance Contributions Act 1 or to Internal Revenue Code Section 125 cafeteria plans.

(2) The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5, Mississippi Code of 1972 , shall not be considered as current taxable income for purposes of computing Mississippi income taxes to be withheld and paid on behalf of the employee.