Section 16-25A-8.1 Retiree contribution based on years of service. - Alabama Statutes

Section 16-25A-8.1

Retiree contribution based on years of service.

The board shall set forth the employer contribution to the health insurance premium for each retiree class. For employees who retire after September 30, 2005, except for those who retire on disability and who are approved for Social Security Disability, the employer contribution of the health insurance premium set forth by the board for each retiree class shall be reduced by two percent for each year of service less than 25 and increased by two percent for each year of service over 25 subject to adjustment by the board for changes in Medicare premium costs required to be paid by a retiree. In no case shall the employer contribution of the health insurance premium exceed 100 percent of the total health insurance premium cost for the retiree.

(Act 2004-649, 1st Sp. Sess., p. 30, §2; Act 2009-607, §1.)