A. Except as otherwise provided in this section, each eligible retiree shall pay a monthly premium for the basic plan in an amount set by the board not to exceed fifty dollars ($50.00) plus the amount, if any, of the compounded annual increases authorized by the board, which increases shall not exceed nine percent until fiscal year 2008 after which the increases shall not exceed the authority's group health care trend. In addition to the monthly premium for the basic plan, each current retiree and nonsalaried eligible participating entity governing authority member who becomes an eligible retiree shall also pay monthly an additional participation fee set by the board. That fee shall be five dollars ($5.00) plus the amount, if any, of the compounded annual increases authorized by the board, which increases shall not exceed nine percent until fiscal year 2008 after which the increases shall not exceed the authority's group health care trend. The additional monthly participation fee paid by the current retirees and nonsalaried eligible participating entity governing authority members who become eligible retirees shall be a consideration and a condition for being permitted to participate in the Retiree Health Care Act. A legislative member or a former participating employer governing authority member shall pay a monthly premium for any selected plan equal to one-twelfth of the annual cost of the claims and administrative costs of that plan allocated to the member by the board. In addition, a legislative member or a former participating employer governing authority member shall pay the additional monthly participation fee set by the board pursuant to this subsection as a consideration and condition for participation in the Retiree Health Care Act. Eligible dependents shall pay monthly premiums in amounts that with other money appropriated to the fund shall cover the cost of the basic plan for the eligible dependents.

B. Eligible retirees and eligible dependents shall pay monthly premiums to cover the cost of the optional plans that they elect to receive, and the board shall adopt rules for the collection of additional premiums from eligible retirees and eligible dependents participating in the optional plans. An eligible retiree or eligible dependent may authorize the authority in writing to deduct the amount of these premiums from the monthly annuity payments, if applicable.

C. The participating employers, active employees and retirees are responsible for the financial viability of the program. The overall financial viability is not an additional financial obligation of the state.

D. For eligible retirees who become eligible for participation on or after July 1, 2001, the board may determine monthly premiums based on the retirees' years of credited service with participating employers.

History: Laws 1990, ch. 6, § 13; 1993, ch. 362, § 4; 1999, ch. 286, § 1; 2000, ch. 31, § 1; 2001, ch. 335, § 2; 2003, ch. 85, § 2; 2005, ch. 86, § 2.

The 2005 amendment, effective July 1, 2005, added the requirement in Subsection A that a former participating employer governing authority member pay the monthly premium as specified in the subsection and the additional monthly participation fee set by the board.

The 2003 amendment, effective July 1, 2003, inserted "A legislative member shall pay a monthly premium for any selected plan equal to one-twelfth of the annual cost of the claims and administrative costs of that plan allocated to the member by the board. In addition, a legislative member shall pay the additional monthly participation fee set by the board pursuant to this subsection as a consideration and condition for participation in the Retiree Health Care Act." following the fourth sentence of Subsection A.

The 2001 amendment, effective June 15, 2001, in Subsection A, substituted "until fiscal year 2008 after which the increases shall not exceed the authority's group health care trend" for "in any fiscal" twice.

The 2000 amendment, effective May 17, 2000, added Subsection D.

The 1999 amendment, effective June 18, 1999, increased the cap on annual retiree basic plan premium increases from three percent to nine percent.

The 1993 amendment, effective June 18, 1993, in Subsection A, rewrote the first two sentences as the first through third sentences, and substituted "in amounts that with other money appropriated to the fund shall" for "to" in the last sentence.