Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
as follows:
Notwithstanding the provisions of chapter thirty-two B of the General Laws, relative to employees included in Local 122 of the Federation of State, City and Town Employees, or retired employees previously so included, the city known as the Town of Methuen may, as part of the total monthly cost of contracts of insurance, authorized by sections three and eleven C of said chapter thirty-two B with contributions as required by section seven thereof, make payment of a subsidiary or additional rate, which may be lower or higher than a premium determined by said city to be paid by the insured, the combination of which shall result in such city making payment of more, but not less, than fifty per cent of the total monthly cost for such insurance for said employees.
(a) With respect to any period of insurance which is in effect for such active or retired employee and dependent, there shall be withheld from each payment of salary, wages, other compensation, pension or retirement allowance, subject to the provisions of section nine E of said chapter thirty-two B fifty per cent of a premium for the insurance of the employee and his dependent and said city shall contribute the remaining fifty per cent of such premium together with any subsidiary or additional rate. Said city shall also contribute fifty per cent of a premium together with any subsidiary or additional rate which may be required of an employee's dependent child who is nineteen years of age or over and mentally or physically incapable of earning his own living.
(b) If such active or retired employee is entitled to receive, during a calendar month, salary, wages, other compensation, pension or retirement allowance, and the premium has not been withheld from said salary, wages, other compensation, pension or retirement allowance, he may continue his insurance in effect by paying directly to the city the premium which would otherwise have been deducted from his salary or pension and the city shall contribute the remaining fifty per cent of the premium together with any subsidiary or additional rate. If an employee is not entitled to receive salary, wages, or other compensation for a calendar month, for purposes of this act he shall be deemed to have been granted a leave of absence without pay, and he shall make payment for the entire cost of his insurance to said city as aforesaid, and there shall be no contribution by the city for such employee's insurance. If an employee is not entitled to receive salary, wages or other compensation for any calendar month, due to illness of such employee and not because of illness of his immediate family, for purposes of this act he shall be deemed to have been granted sick leave without pay, and subject to the rules and regulations of the appropriate public authority, said employee shall make payment of fifty per cent of the premium for his insurance to the treasurer of said city and said city shall contribute the remaining fifty per cent of such premium together with any subsidiary or additional rate.
(c) All amounts withheld from an employee's salary, wages or other compensation as provided in subsection (a) and all amounts paid by an employee as provided in subsection (b) and all amounts withheld from retired employees as retirement allowances under the provisions of section nineteen A of chapter thirty-two of the General Laws together with the contribution of the city as provided in subsection (a) shall be paid by the treasurer of said city to the carrier or carriers entitled to the total premium and subsidiary or additional rate, if any.