§ 635. Coverage; beneficiaries of deceased retirees

(a) The surviving spouse of a retired employee who elected option 3 or option 4 under section 468 of this title shall be eligible to participate in the group health insurance program provided in this chapter. Premiums shall be paid at the full actuarial rate by the eligible spouse with no contribution from the State, except as specified in subsection (b) of this section and subsection 479(e) of this title, and shall be deducted from the eligible spouse’s retirement check.

(b) Premiums paid by the surviving spouse of a retired employee who retired due to disability after January 1, 1998 and died prior to age 65, and the surviving dependents of an employee who died in service after January 1, 1998 who are eligible for continued medical benefits pursuant to sections 464 and 465 of this title and subsection (a) of this section, shall be prorated on the same basis as is provided for active employees by the current collective bargaining agreement for the nonmanagement unit. The covered survivors may continue coverage subject to the rules of the medical plan, by paying this prorated share, until the survivor becomes eligible for coverage under another group medical plan, or another plan offered by the State or federal government becomes eligible for Medicare or adds a spouse to the coverage. If the survivor becomes eligible for coverage under another group medical plan, coverage shall terminate. If the surviving spouse becomes eligible for Medicare or adds a spouse to the coverage, he or she may continue coverage by paying the full actuarial rate with no contribution from the State, in the same manner as surviving spouses of nondisability retirees pursuant to subsection (a) of this section.

(c)(1) Notwithstanding any other provision of this chapter concerning eligibility for health insurance, the surviving spouse and surviving dependents of an active State employee who dies prior to retirement shall be entitled to continue group health insurance coverage if the Board of Trustees of the Vermont State Employees’ Retirement System finds on the basis of such evidence as may come before it that:

(A) the employee died as a result of the willful or reckless act of a third party that was motivated by the employee’s status as a governmental employee or by the employee’s performance of official duties;

(B) the employee was participating in either the Vermont State Employees’ Retirement System or the State of Vermont Defined Contribution Retirement Plan at the time of the employee’s death; and

(C) the surviving spouse or surviving dependents were covered by the State group health insurance plan at the time of the employee’s death.

(2) The terms of continuing coverage, including the calculation of premiums to be paid by the surviving spouse and surviving dependents and the termination of coverage, shall be in accordance with the provisions of subsection (b) of this section; provided, however, that eligibility for a dependent child shall terminate when the child has attained 18 years of age, or 23 years of age in the case of a dependent student, or such later age as may be required by federal law. (Added 1981, No. 91, § 23, eff. July 5, 1981; amended 1997, No. 89 (Adj. Sess.), § 12, eff. April 13, 1998; 2013, No. 22, § 9; 2015, No. 114 (Adj. Sess.), § 5.)