(e) The term retiree shall mean a person who has become enrolled in the plan as an employee and whose coverage is being continued after withdrawal from the active service of the employer under the eligibility privileges of the plan and who either:

1. (1) has retired as a member of the retirement or pension plan or system administered and operated by the State of New York, or a civil division thereof, including the New York State Teachers' Retirement System; or
2. (2) is a member of a retirement or pension plan or system referred to in paragraph (1) of this subdivision who is qualified to retire under such plan or system, but who elects to defer receipt of the pension after withdrawal from the active service of the employer; or
3. (3) was not a member of a retirement or pension plan or system referred to in paragraph (1) of this subdivision, and is withdrawn or does withdraw from the active service of an employer after attaining such age and service requirements as would have been required to retire as a member of the New York State and Local Employees' Retirement System.

(f) The term dependent shall include the spouse of an employee or retired employee. It shall also include such person's unmarried child 15 days of age or older but under 19 years of age, any unmarried child 19 years of age or older who is incapable of self-support by reason of mental or physical disability and who became so incapable before reaching the age at which dependent coverage would otherwise terminate, and any student dependent as hereinafter defined. The term child shall include any natural born child, any legally adopted child and any stepchild dependent upon the employee or retired employee, and any child dependent upon the employee or retired employee during any waiting period prior to the finalization of the child's adoption by the employee or the retired employee. Dependent shall not include, however, any person:

1. (1) who is the employee's or retired employee's child and is covered as an employee, or as a dependent of another employee or retired employee under the plan; or
2. (2) who is in the Armed Forces of any country; or
3. (3) who resides outside the United States or Canada; or
4. (4) for whom evidence of acceptability for coverage furnished in accordance with the provisions of this Part is not accepted as satisfactory; or
5. (5) who, in the case of a retiree, was not insured immediately prior to the effective date of retirement, except dependents acquired after retirement.