1. Subject to the approval of the director of the department of labor and industrial relations, the director of the division may formulate, adopt and administer plans to provide the employees of the division of employment security, as an incident of their employment, with group life insurance or insurance against the payment of medical and hospital expenses or any similar type of insurance. Any plan adopted shall be made pursuant to a contract entered into with one or more insurance companies authorized to do business in this state and it may require the payment of all or any part of the premium by the division or by the employees. If any plan adopted requires contributions by the employees, the director may provide for the withholding of the amount of the employees’ contribution from their salaries, and may requisition the total amount withheld as well as the amount of the division’s contribution from the unemployment compensation administration fund derived from grants from the United States for that purpose in the state treasury. The plan may provide for the continuation of any insurance provided on the same or on a different basis after the retirement of any employee who retires after the effective date of the plan pursuant to the Missouri state employees’ retirement system. Participation by any employee of the division in any plan adopted shall be on a voluntary basis.

2. Calendar year 1995 shall be the last year in which any employees of the department of labor and industrial relations will be covered under health insurance benefit plans that have been independently negotiated by the division of employment security. For calendar year 1996, and each calendar year thereafter, the department of labor and industrial relations and the office of administration shall jointly determine the financial transactions that will be required in order to account for the federal unemployment compensation administration funds that shall be used as the employer’s contribution towards benefit plans for eligible employees, retirees or dependents. Benefit plans shall be provided pursuant to the provisions of this subsection.

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(1) Beginning January 1, 1996, the Missouri consolidated health care plan shall provide group health care benefits for all the employees of the department of labor and industrial relations who meet the eligibility requirements set forth for officers, employees or retirees of the state or its participating agencies as set forth in chapter 103. These employees shall be offered the same benefits plan under the same terms and conditions as other state employees. The Missouri consolidated health care plan shall not assume responsibility for any liabilities incurred by the department, or its eligible employees, retirees or dependents prior to January 1, 1996.

(2) During calendar year 1995, the department of labor and industrial relations, the office of administration and the Missouri state employees’ retirement system shall determine the feasibility of transitioning employees of the department of labor and industrial relations who meet the eligibility requirements set forth for officers, employees or retirees of the state or its participating agencies, over to the group life insurance benefit plan provided by the Missouri state employees’ retirement system.