A. The Board shall, under the terms and conditions specified by the Board, make available to any active insured employee optional life, accidental death, and dismemberment insurance on the employee’s spouse and minor dependents in the following amounts:
1. For the spouse of an active insured employee: an amount up to 50 percent of the maximum amount of optional insurance available to the employee under § 51.1-512.
2. For any minor dependent of an active insured employee in increments specified by the Board. The Board shall adjust these amounts periodically to account for changes in the purchasing power of money over time.
B. All optional insurance on an employee’s spouse shall cease upon the earliest of (i) the date the employee’s basic coverage ceases, (ii) the entry of a final divorce decree terminating the marriage of the employee and the employee’s spouse, or (iii) the date the insurance being continued in retirement terminates pursuant to subsections C and D. All optional insurance on an employee’s minor dependent shall cease upon the earliest of (a) the minor dependent attains the age of 21, unless the minor dependent is a full-time student at an institution of higher education, then age 25 or unless the minor dependent is under a mental or physical disability, in which event coverage shall not terminate until three months following cessation of the disability, (b) marriage of the minor dependent, or (c) the date the employee’s basic coverage ceases.
C. Subject to foregoing limitations, the optional amount of life insurance in force on the spouse or minor dependent of an employee who retires for disability on an immediate retirement allowance may be continued, subject to payment of any required premium by the employee, during continuance of such disability but not beyond the end of the month in which the employee’s normal retirement date occurs.
D. Subject to the foregoing limitations, the optional amount of life insurance in force on the spouse or minor dependent of an employee who retires for service on an immediate retirement allowance, or for an employee who retired for disability on an immediate retirement allowance when his normal retirement date occurs, may be continued, subject to payment of any required premium by the employee, and provided the employee had such spouse or dependent insurance for a period of at least 60 continuous months prior to retirement, or prior to reaching normal retirement date for a disability retirement. Life insurance on the spouse that is eligible to be continued shall be an amount specified by the Board and available to the retiree under § 51.1-512 and shall begin to reduce when the retiree’s normal retirement date occurs under the terms and conditions specified by the Board. Life insurance on dependent children that is eligible to be continued shall be in increments as specified by the Board. The Board shall adjust these amounts periodically to account for changes in the purchasing power of money over time. All optional life insurance on a retiree’s spouse or dependent ceases at the earliest of (i) the retiree attaining age 80, (ii) the death of the retiree, (iii) for a spouse, the entry of a final divorce decree terminating the marriage of the retiree and the retiree’s spouse, (iv) for a minor insured dependent, the date the dependent attains the age of 21, unless the minor insured dependent is a full-time college student, then the date the dependent attains age 25, unless the minor insured dependent is under a mental or physical disability, in which case coverage shall not terminate until three months following cessation of the disability, or (v) for a minor insured dependent, the date of his marriage. All accidental death and dismemberment insurance ceases at retirement.
E. The cost of the optional insurance shall be determined periodically by the Board on the basis it considers appropriate. The Board may discontinue the optional insurance plan at any time upon determination that employee participation is not sufficient to continue the plan on a sound actuarial basis.
F. The amount of optional life, accidental death, and dismemberment insurance in force on an employee’s spouse or minor dependent at the date of his or her death shall be paid as provided in this chapter. All accidental death and dismemberment insurance ceases at retirement. The amount of optional life insurance in force on the retiree’s spouse or minor dependent at the date of his death shall be paid as provided in this chapter.
G. The Board shall determine the form and content of the accounting reports to be made by the insurance company with respect to the optional insurance. Any expenses incurred by the Retirement System for operating and administering the optional insurance programs provided in this section may be recovered by the Board from the advance premium deposit reserve required by subsection B of § 51.1-514.
H. As used in this section, an employee’s “minor dependent” means a child member of the employee’s or retiree’s family who is eligible for coverage under the family membership program offered under policies and procedures of the Department of Human Resource Management governing health insurance plans administered pursuant to § 2.2-1204 or 2.2-2818.
I. The provisions of this chapter applicable to the provision of group insurance policies to insure eligible employees or retirees shall apply to optional insurance insuring the spouses and minor dependents of eligible employees or retirees pursuant to this section, with the respective differences having been considered.