A. On notification, the board shall pay from the assets of the separate account established pursuant to subsection G of this section part of the single coverage premium of any group health and accident insurance for each retired member or survivor of the plan who receives a pension if the retired member had eight or more years of credited service under the plan. In order to qualify for payment pursuant to this subsection, the retired member or survivor shall elect single coverage and must have elected to participate in the coverage provided in section 38-651.01 or 38-782 or any other retiree health and accident insurance coverage provided or administered by an employer. The board shall pay up to:

1. 1. One hundred fifty dollars per month for each retired member or survivor of the plan who is not eligible for medicare.
2. 2. One hundred dollars per month for each retired member or survivor of the plan who is eligible for medicare.

B. On notification, the board shall pay from the assets of the separate account established pursuant to subsection G of this section part of the family coverage premium of any group health and accident insurance each month for a retired member or survivor who elects family coverage and who otherwise qualifies for payment pursuant to subsection A of this section. The board shall pay up to:

1. 1. Two hundred sixty dollars per month if the retired member or survivor of the plan and one or more dependents are not eligible for medicare.
2. 2. One hundred seventy dollars per month if the retired member or survivor of the plan and one or more dependents are eligible for medicare.

3. 3. Two hundred fifteen dollars per month if either:

   1. (a) The retired member or survivor of the plan is not eligible for medicare and one or more dependents are eligible for medicare.
   2. (b) The retired member or survivor of the plan is eligible for medicare and one or more dependents are not eligible for medicare.

C. Each retired member or survivor of the plan with less than eight years of credited service and a dependent of such a retired member or survivor who participates in the coverage provided by section 38-651.01 or 38-782 or who participates in any other retiree health and accident insurance coverage provided or administered by an employer is entitled to receive a proportion of the full benefit prescribed by subsection A or B of this section according to the following schedule:

1. 1.
2. 7. 0 to 7.9 years of credited service, ninety percent.
3. 2.
4. 6. 0 to 6.9 years of credited service, seventy-five percent.
5. 3.
6. 5. 0 to 5.9 years of credited service, sixty percent.
7. 4. Those with less than five years of credited service do not qualify for the benefit.

H. Payment of the benefits provided by this section is subject to the following conditions:

1. 1. The payment of the benefits is subordinate to the payment of retirement benefits payable by the plan.
2. 2. The total of contributions for the benefits and actual contributions for life insurance protection, if any, shall not exceed twenty-five percent of the total actual employer and employee contributions to the plan, minus the contributions to fund past service credits, after the day the account is established.
3. 3. The contributions by the employer to the account shall be reasonable and ascertainable.