SECTION 7A. Contribution and withholding for premiums; subsidiary or additional rate; payments in lieu of withholding; acceptance of section

A governmental unit which has accepted the provisions of section ten and which accepts the provisions of this section may, as a part of the total monthly cost of contracts of insurance authorized by sections three and eleven C, with contributions as required by section seven, make payment of a subsidiary or additional rate which may be lower or higher than a premium determined by the governmental unit to be paid by the insured, the combination of which shall result in the governmental unit making payment of more, but not less, than fifty per cent of the total monthly cost for such insurance. No governmental unit, however, shall provide different subsidiary or additional rates to any group or class within that unit.

(a) With respect to any period of insurance which is in effect for an 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, fifty per cent of a premium for the insurance of the employee and his dependents and the governmental unit shall contribute the remaining fifty per cent of such premium together with any subsidiary or additional rate. The governmental unit 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 an 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 governmental unit the premium which would otherwise have been deducted from his salary or pension and said governmental unit 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 chapter, 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 the governmental unit as aforesaid, and there shall be no contribution by the governmental unit 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 section 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 the governmental unit, and such governmental unit 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 paragraph (a) of this section and all amounts paid by an employee as provided in paragraph (b) of this section and all amounts withheld from retired employees as retirement allowances under the provisions of section nineteen A of chapter thirty-two together with the contribution of the governmental unit as provided in paragraph (a) shall be paid by the treasurer of the governmental unit to the carrier or carriers entitled to the total premium and subsidiary or additional rate, if any.

(d) This section shall take effect in a county, except Worcester county, city, town or district upon its acceptance in the following manner:—In a county by vote of the county commissioners; in a city having a Plan D or Plan E charter by majority vote of its city council; in any other city by vote of its city council, approved by the mayor; in a district, except as hereinafter provided, by vote of the registered voters of the district at a district meeting; in a regional school district by vote of the regional district school committee; in a veterans' services district by vote of the district board; in a welfare district by vote of the district welfare committee; in a health district established under section twenty-seven A of chapter one hundred and eleven by vote of the joint committee; and in a town either by vote of the town or by a majority of affirmative votes cast in answer to the following question which shall be printed upon the official ballot to be used at an election in said town:—''Shall the town, in addition to the payment of fifty per cent of a premium for contributory group life and health insurance for employees in the service of the town and their dependents, pay a subsidiary or additional rate?'' Section seven shall not apply in any governmental unit which accepts the provisions of this section.