12-5040.   Group health care benefits plan; availability for retirants;coverage, end; eligibility; cost of coverage; definitions.(a) Each local government which provides anemployer-sponsored group health care benefits plan for the employees of thelocal government shall make coverage under such group health care benefitsprogram available to retired former employees and their dependents, uponwritten application filed with the clerk or secretary thereof within 30days following retirement of the employee, asprovided by this section. Coverage under the employee group health carebenefits plan may cease to be made available upon (1) the retired employeeattaining age 65, (2) the retired employee failing to make requiredpremium payments on a timely basis, or (3) the retired employee becomingcovered or becoming eligible to be covered under a plan of another employer.

      (b)   Each such local government shall make such coverage available to allpersons who were employed by the local government fornot less than 10 years and who retired from suchemployment after December 31, 1988, and may make such coverage available toother retired employees and their dependents. Each such retired employeewho elects to continue such coverage may be required to contribute to theemployee group health benefits plan, including the administrative coststhereof, but such contribution shall not exceed 125% of the premiumcost for other similarly situated employees. The local government may payfor all or part of the cost of continuing the employee group health carebenefits plan coverage for such retired former employees and their dependents.

      (c)   As used in this section, "local government" means any county, city,township, special district, unified school district or any instrumentalityof any one or several ofsuch governmental entities; and "retired" means any employee whohasterminated employment and is receiving a retirement or disability benefitfor service with the local government from which they terminated employment.

      History:   L. 1988, ch. 302, § 18; July 1.