Termination provisions

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RS 811 - Termination provisions

A. No state agency, local school board, political subdivision, or other entity participating in programs offered through the Office of Group Benefits shall terminate participation in those programs, unless each of the following conditions is met:

(1) The head of the agency has notified the employees of the proposed termination.

(2) The head of the agency has informed the employees regarding these statutory provisions covering termination and re-enrollment.

(3) A majority of the employees of the agency approve in writing such termination within fifteen days of the notification of the proposed termination.

(4) The head of the agency has provided written notice of intent to withdraw to the office at least thirty days prior to the anniversary date of the agency joining the program.

B. Any agency which withdraws from a program offered by the office must pay, in advance, an actuarially determined pro rata share of any accrued liabilities of the program. The actuarial consultant serving the program shall determine the share of liabilities due. Any agency which does not remit the entire share of actuarially determined liabilities shall not be allowed to terminate participation in the program.

C.(1) Notwithstanding any other provision of law to the contrary, no state agency, local school board, political subdivision, or other entity which terminates participation in the programs and procures a private contract of health and life insurance for its employees pursuant to this Section shall, upon termination of the private contract and re-enrollment in the programs, use monies appropriated by the legislature for payment of the state or employer's portion of any premium due the program.

(2) The total amount of the premium due by the employee of such agency to the office shall be deducted from the salary of the employee.

Acts 2001, No. 1178, §5, eff. June 29, 2001.


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