§87A-33  State and county contributions; retired
employees.  (a)  Notwithstanding any law to the contrary, this section shall
apply to state and county contributions to the fund for:



(1)  The dependent-beneficiary of an employee who is killed
in the performance of duty;



(2)  A dependent-beneficiary, upon the death of the employee-beneficiary,
except as provided in section 87A-36;



(3)  An employee-beneficiary who retired after June 30,
1984, due to a disability falling within sections 88-79 and 88-285;



(4)  An employee-beneficiary who retired before July 1,
1984;



(5)  An employee-beneficiary who:



(A)  Was hired before July 1, 1996;



(B)  Retired after June 30, 1984; and



(C)  Who has ten years or more of credited service,
excluding sick leave;



(6)  An employee-beneficiary who:



(A)  Was hired after June 30, 1996; and



(B)  Retired with twenty-five or more years of credited
service, excluding sick leave, except as provided in section 87A-36; and



(7)  Employees who retired prior to 1961 and their dependent-beneficiaries.



(b)  Effective July 1, 2003, there is established
a base monthly contribution for health benefit plans that the State, through the
department of budget and finance, and the counties, through their respective departments
of finance, shall pay to the fund, up to the following:



(1)  $218 for each employee-beneficiary enrolled in supplemental
medicare self plans;



(2)  $671 for each employee-beneficiary enrolled in supplemental
medicare family plans;



(3)  $342 for each employee-beneficiary enrolled in non-medicare
self plans; and



(4)  $928 for each employee-beneficiary enrolled in non-medicare
family plans.



The monthly contribution by the State or county
shall not exceed the actual cost of the health benefits plan or plans.  If both
husband and wife are employee-beneficiaries, the total contribution by the State
or county shall not exceed the monthly contribution for a supplemental medicare
family or non-medicare family plan, as appropriate.



(c)  Effective July 1, 2004, there is established
a base monthly contribution for health benefit plans that the State, through the
department of budget and finance, and the counties, through their respective departments
of finance, shall pay to the fund, up to the following:



(1)  $254 for each employee-beneficiary enrolled in supplemental
medicare self plans;



(2)  $787 for each employee-beneficiary enrolled in supplemental
medicare family plans;



(3)  $412 for each employee-beneficiary enrolled in non-medicare
self plans; and



(4)  $1,089 for each employee-beneficiary enrolled in non-medicare
family plans.



The monthly contribution by the State or county
shall not exceed the actual cost of the health benefit plan or plans and shall not
be required to cover increased benefits above those initially contracted for by
the fund for plan year 2004-2005.  If both husband and wife are employee-beneficiaries,
the total contribution by the State or county shall not exceed the monthly contribution
for a supplemental medicare family or non-medicare family plan, as appropriate.



(d)  The base composite monthly contribution shall
be adjusted annually, beginning July 1, 2005.  The adjusted base composite monthly
contribution for each new plan year (July 1 until June 30) shall be calculated by
increasing or decreasing the base composite monthly contribution in effect through
the end of the previous plan year by the percentage increase or decrease in the
medicare part B premium rate for those years, which percentage shall be calculated
by dividing the medicare part B premium rate in effect at the beginning of the new
plan year by the rate in effect at the beginning of the previous plan year.



For the plan year beginning July 1, 2005, the adjusted
base monthly contribution shall be computed using the actual contracted premium
rate as of July 1, 2004, for medicare and non-medicare, self and family health benefits
plans with the highest actual contracted premium rate as of July 1, 2004.



As used in this subsection, "medicare part
B premium rate" means the rate published in the Federal Register each year
on November 1 or on the business day closest to November 1 of each year after the
medicare part B premium rate has been established by the Secretary of Health and
Human Services and approved by the United States Congress.



(e)  If the board adopts a rate structure that provides
for other than self and family rates for the health benefit plans, the base monthly
contribution for the rate structure adopted by the board shall be adjusted to provide
the equivalent underwriting cost as the base monthly contribution that is provided
for in this section. [L 2001, c 88, pt of §1; am L 2003, c 111, §2; am L 2007, c
26, §1]