Section 11F. Upon acceptance of this section as hereinafter provided, the appropriate public authority of the governmental unit shall negotiate with one or more insurance companies and purchase on such terms as it deems to be in the best interest of the governmental unit and its employees a policy or policies of group disability income insurance covering nonoccupational injury or disease. Such insurance shall be issued in accordance with the eligibility requirements as provided in chapter one hundred and seventy-five. The appropriate public authority shall incorporate this disability income insurance as an integral part of the group life and accidental death and dismemberment insurance provided under section five or eleven A with the claim experience and retention costs combined, or the claims experience and retention costs of said disability income insurance may be maintained separately from the claims experience and retention costs of the group life and accidental death and dismemberment insurance provided under sections five and eleven A. The appropriate public authority may execute policies or contracts for said disability income insurance for a period not exceeding five years; provided, however, that the portion of the cost of the premium per month to be borne by the governmental unit shall not exceed the estimated monthly cost for which funds have been appropriated for the then current fiscal year. A copy of said policies or contracts shall be filed with the commission no later than thirty days after their effective date and the commission shall in its discretion include pertinent data regarding such insurance in its annual report. Each employee entitled to be insured under this section shall file an application therefor with the treasurer of the governmental unit on a form prescribed by said treasurer. Such application shall be the property of the governmental unit. With respect to any disability income insurance which is in effect for an employee there shall be withheld from payment of salary, wages or other compensation fifty per cent of a total monthly premium or rate and the governmental unit shall contribute the remaining fifty per cent. If an employee is not entitled to receive salary, wages or other compensation for a calendar or premium month while in the status of a leave of absence without pay and not because of sickness or injury, he shall make payment directly to the treasurer of the governmental unit and there shall be no contribution by the governmental unit for such payment. If an employee is entitled to receive, during a calendar month, salary, wages or other compensation, and the premium has not been withheld from said salary, wages or other compensation, he may continue his insurance in effect by paying directly to the governmental unit, which would otherwise have been deducted from his salary or wages, and said governmental unit shall contribute the remaining fifty per cent of the cost of the monthly premium. 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 for fifty per cent of the cost of such insurance to the treasurer of the governmental unit, and such governmental unit shall contribute the remaining fifty per cent of said premium. All amounts withheld from an employee’s salary, wages or other compensation and all amounts paid by an employee together with the contribution of the governmental unit as hereinbefore described shall be paid by the treasurer of the governmental unit to the carrier or carriers entitled to the premium. An employee insured under this section may by written notice on a form provided by the treasurer cancel such disability income insurance and such insurance shall require no further premium payment the first day of the premium month following the expiration of fifteen days from the receipt of notice of cancellation. Any dividend or refund applicable to disability income insurance provided under this section shall be paid by the insurance carrier or carriers to the governmental unit and shall be distributed in accordance with the provisions of section eight or eight A whichever may be applicable.
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, except Worcester 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; and in a town either by vote of the board of selectmen, 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 pay one half of a premium for disability income insurance for its employees?”
The appropriate public authority shall notify the commission of the acceptance of this section as soon thereafter as practicable.
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