2005 California Government Code Sections 31691-31693 Article 8.5. Group Insurance

31691.  The board of supervisors of any county by ordinance or the
governing body of any district under the County Employees Retirement
Law may by ordinance or resolution provide for the contribution by
the county or district from its funds and not from the retirement
fund toward the payment of all or a portion of the premiums on a
policy or certificate of life insurance or disability insurance
issued by an admitted insurer, or toward the payment of all or part
of the consideration for any hospital service or medical service
corporation, including any corporation lawfully operating under
Section 9201 of the Corporations Code, contract, or for any
combination thereof, for the benefit of any member heretofore or
hereafter retired or his dependents.  At least one of these plans
shall include free choice of physician and surgeon.
   The benefits provided by this section are in addition to any other
benefits provided by this chapter (commencing with Section 31450).
   The board of retirement may provide on behalf of a member who has
retired or, an eligible surviving spouse who was married to the
member for one year prior to the date of retirement of the member or,
if there is no such spouse, the surviving unmarried children of the
member who are under 18 years of age or under the age of 22 and
full-time students, for the benefits enumerated herein from the
earnings of the retirement fund which are in excess of the total
interest credited to contributions and reserves plus 1 percent of the
total assets of the retirement fund.  The board may provide for the
benefits enumerated from like sources when the board of supervisors
or the governing body of a district has elected to provide these
benefits to its active employees, even though they are not provided
to those who have retired from the service of the county or district.
   Except in a county of the first class, upon adoption by any county
providing benefits pursuant to this section, of Article 5.5
(commencing with Section 31510) of this chapter, the board of
retirement shall, instead, pay those benefits from the Supplemental
Retiree Benefits Reserve established pursuant to Section 31510.8.
31691.1.  In lieu of the benefits prescribed by the last paragraph
of Section 31691, the board of retirement may provide on behalf of a
member who has retired or an eligible surviving spouse who was
married to the member prior to the date of retirement of the member,
or, if there is no such spouse, the surviving unmarried children of
the member who are under 18 years of age or under the age of 22 and
full-time students, for an equivalent increase in allowance from the
earnings of the retirement fund which are in excess of the total
interest credited to contributions and reserves plus 1 percent of the
total assets of the retirement fund.  Any benefit provided by this
section shall be subject to the provisions of Section 31692.
   Except in a county of the first class, upon adoption by any county
providing benefits pursuant to this section, of Article 5.5
(commencing with Section 31510) of this chapter, the board of
retirement shall, instead, pay those benefits from the Supplemental
Retiree Benefits Reserve established pursuant to Section 31510.8.
31691.2.  The board of retirement in a county of the first class may
permit active members and their dependents to enroll in any plan
authorized in Section 31691.  The board shall have exclusive control
over the plan benefits and administration to the same degree and to
the same extent it otherwise has control over plan benefits and
administration for retired members, and may recover reasonable
administrative costs from the county or plan participants.
   This section shall not be operative until the board of
supervisors, by resolution adopted by a majority vote, makes this
section applicable in the county.
31692.  The adoption of an ordinance or resolution pursuant to
Section 31691 shall give no vested right to any member or retired
member, and the board of supervisors or the governing body of the
district may amend or repeal the ordinance or resolution at any time
except that as to any member who is retired at the time of such an
amendment or repeal, the amendment or repeal shall not be operative
until ninety (90) days after the board or governing body notifies the
member in writing of the amendment or repeal.  In counties with a
population of 5,000,000 or more, the adoption of an ordinance or
resolution pursuant to Section 31691 shall remain in effect for any
member heretofore or hereafter retired for as long as the board of
supervisors or governing body provides similar types of benefits to
any active member in current county service.
31693.  In any county, district, or county retirement system
providing benefits under this article, the county, district, or
county retirement system shall provide any organization that is
recognized by the retirement system of the county or district as
representing the retired employees of that county or district
reasonable advance notice of any proposed changes in employee health
care benefits affecting those retired employees and the organization
shall have a reasonable opportunity to comment prior to any formal
action by the county, district, or county retirement system on the
proposed changes.  As used in this section, "proposed changes" means
significant changes affecting health care benefits, including, but
not limited to, changes in health care carriers, plan design, and
premiums.