1. (a) Retirees shall pay monthly contributions to cover the cost of optional plans.
2. (b) Surviving spouses shall pay monthly contributions to cover the cost of insurance for the surviving spouse.
3. (c) Retirees and surviving spouses shall pay monthly contributions to cover the cost of insuring dependents.
4. (d) Surviving dependent children, or their representative, shall pay monthly contributions to cover the cost of insurance for the surviving dependent children.
5. (e) In order to be eligible for optional coverage, a retiree, surviving spouse, or surviving dependent child, or his or her representative, must authorize in writing the deduction by the trustee of the amount of the contributions from their annuity payment. After such authorization, the trustee shall deduct the amount of the contribution each month from the annuity payment.
6. (f) In order to pay for dependent coverage, the retiree or surviving spouse shall authorize in writing the deduction of the contribution payment from their annuity payment. After authorization by the retiree or surviving spouse, the trustee shall deduct the amount of the contribution each month from the retiree's or surviving spouse annuity payment.
7. (g) In the event that the amount of the contribution is more than the amount of the annuity payment, the participant will be billed directly by the carrier for the entire amount.
8. (h) Failure to make any required contribution for coverage of a non-retiree will result in termination of coverage at the end of the month for which the last contribution was made.
9. (i) Failure to make any required contribution for coverage of a retiree under an optional plan will result in termination of coverage from the optional plan and enrollment in the basic plan, resulting in a decrease in coverage, at the end of the month for which the last contribution was made.
10. (j) Disability retirees shall be required to pay monthly contributions to cover the cost of coverage during periods when their annuity payments are suspended. Failure to make required contributions will result in a termination of coverage from the optional plan and enrollment in the basic plan, resulting in a decrease in coverage.

Source Note:The provisions of this §41.5 adopted to be effective April 7, 1987, 12 TexReg 1000; amended to be effective November 6, 1987, 12 TexReg 3926; amended to be effective March 12, 2003, 28 TexReg 2112.