Section 38.1129. Suspension of retirement allowance; health insurance coverage.

Rule 129. (1) If a retirement allowance is suspended for any reason provided by statute, and if the person  is enrolled  in   the  retirement system's health insurance plan, the retirement system's subsidy shall also cease until the  date  the  retirant  again becomes eligible  to  receive  a monthly allowance. During the period of suspension, the retirant shall be given the option to continue with the health insurance plan, but without retirement system subsidy, if applicable.

(2)  Instead  of  suspending  a  retirement   allowance   where    excess post- retirement earnings are involved, the retirant may pay the retirement system, in a single lump sum, the total amount of the excess earnings, in which case the retirement allowance and health insurance subsidy shall not be discontinued. As an alternative, the retirant may choose to have his or her monthly allowance reduced over a period of not more than 12 months by an amount which will repay the system the excess earnings so received, if the reduced allowance is not less than 50%  of  the   unreduced  allowance. The retirement system's subsidy for the cost of the health insurance plan shall be continued during the period of reduced allowance payments.

History: 1985 AACS.