[§87A-37]  Group life insurance benefits
plans for retired employees; contributions.  (a)  The State, through the
department of budget and finance, and the counties, through their respective
departments of finance, shall pay to the fund a base monthly contribution as
set forth in subsection (b) for each retired employee enrolled in the fund's
group life insurance benefits plan under section 87A-34, 87A-35, and 87A-36.



(b)  Effective July 1, 2003, there is
established a base monthly contribution of $4.16 for each retired employee
enrolled in a group life insurance plan; provided that the monthly contribution
shall not exceed the actual cost of the group life insurance benefits plan. 
The base composite monthly contribution shall be adjusted annually beginning
July 1, 2004.  The adjusted base composite monthly contribution for each new
plan year 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.  The 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 through the end of the previous plan year.



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. [L 2001,
c 88, pt of §1]