STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL
July 29, 1975
Mr. Al A. Asher, Administrator
S.D. Public Employees Insurance System
222 East Capitol
Pierre, South Dakota 57501
OFFICIAL OPINION NO. 75-131
Political subdivision participation in group health insurance plan authorized by SDCL 3-12A
Dear Mr. Asher:
You have requested an opinion from this office as to whether or not political subdivisions of the State of South Dakota that participate in the group health insurance plan authorized by SDCL 3-12A are required to contribute the full single rate monthly premium for each eligible employee. It is my understanding from your letter that several counties participating in the above. system take the position that they will pay no more than 50 percent of the total premium, regardless of whether the employee is participating in single coverage of family coverage. SDCL 3-12A-19, 7-8-26.1, and 9-14-32 are relevant statutes which you cite in relation to this question. These statutes provide:
SDCL 3-12A-19. Employer contributions to system Crediting and disbursement. - The state of South Dakota and affiliated political subdivision employers shall make a monthly contribution to the system in such sufficient amount to make payment for the full single rate monthly health insurance premium for each public employee. This amount shall be transmitted to the account of the public employees insurance system in the state treasurer's office and he, after making a record of the receipts shall credit the insurance system with an amount equal to that remitted by the state of South Dakota and the affiliated political subdivisions; after such credit having been assigned to the insurance system, the board shall disburse the same in accordance with the provisions adopted in this chapter and the rules and regulations adopted by the board.
SDCL 7-8-26.1. Life and health insurance contracts for county officers and employees. - The board of county commissioners shall have power to enter into group life and group health insurance contracts for the protection and benefit of its officers and employees, and the immediate families of such officers and employees, and pay not to exceed one-half of the necessary premiums therefor.
SDCL 9-14-32. Percentage participation for insurance program - Appropriations authorized. - The insurance provided for by 9-14-30 must be with participation in the cost of at least fifty per cent thereof by said employees or officers, and the municipalities of the state of South Dakota are authorized to appropriate the necessary funds for such insurance.
SDCL 3-12A-l(3) defines an affiliated political subdivision as any county, municipality, township, school district or any other political subdivision created by statute which elects to participate in this insurance plan. SDCL 3-12A-11 provides that upon the admission of a political subdivision to participate in the insurance plan, all of the employees eligible for membership in the insurance plan, upon its admission date, shall be enrolled in the plan.
It is my opinion that SDCL 3-12A requires that political subdivisions which elect to participate in the insurance plan are bound by the conditions and statutes relating to such plan. SDCL 3-12A-19, cited above, clearly requires that political subdivisions who participate in the plan are required to contribute the full rate monthly premium for each eligible employee.
Respectfully submitted,
William Janklow
Attorney General
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