(a)      (1)      In this section the following words have the meanings indicated.

            (2)      "Creditable service" means:

                  (i)      service credited toward a retirement allowance under Division II of this article;

                  (ii)      service while a member of the Judges' Retirement System under Title 27 of this article;

                  (iii)      service while an employee was employed by the Domestic Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before July 1, 2002 into the State Personnel Management System, in accordance with § 2-510 of the Courts Article; or

                  (iv)      service while a member of the Maryland Transit Administration Retirement Plan under § 7-206 of the Transportation Article.

            (3)      (i)      "Retiree" means:

                        1.      a former State employee who receives a retirement allowance under Division II of this article;

                        2.      a former employee of the Medical System Corporation, as defined in § 13-301 or § 13-401 of the Education Article, who receives a retirement allowance from the Employees' Retirement System of the State of Maryland or the Employees' Pension System of the State of Maryland under Title 22 or Title 23 of this article; or

                        3.      a former employee of the Maryland Transit Administration who receives a Maryland Transit Administration retirement allowance under § 7-206 of the Transportation Article.

                  (ii)      "Retiree" does not include:

                        1.      a member of the faculty or staff of a community college;

                        2.      a teacher or a staff member employed by a county board of education; or

                        3.      an individual who retired under an optional program under Title 30 of this article.

            (4)      "State service" means service with the State by:

                  (i)      an employee while a member of the Employees' Retirement System or the Employees' Pension System under Title 22 or Title 23 of this article;

                  (ii)      a member of the Judges' Retirement System under Title 27 of this article;

                  (iii)      a teacher while a member of the Teachers' Retirement System or Teachers' Pension System under Title 22 or Title 23 of this article;

                  (iv)      a correctional officer, while a member of the Correctional Officers' Retirement System under Title 25 of this article;

                  (v)      an employee of the Medical System Corporation, as defined in § 13-301 or § 13-401 of the Education Article, while a member of the Employees' Retirement System of the State of Maryland or the Employees' Pension System of the State of Maryland under Title 22 or Title 23 of this article;

                  (vi)      a State Police officer while a member of the State Police Retirement System under Title 24 of this article;

                  (vii)      a law enforcement officer while a member of the Law Enforcement Officers' Pension System under Title 26 of this article; or

                  (viii)      an employee while a member of the Maryland Transit Administration Plan under § 7-206 of the Transportation Article.

      (b)      (1)      A retiree may enroll and participate in the health insurance benefit options established under the Program if the retiree:

                  (i)      ended State service with at least 10 years of creditable service and within 5 years before the age at which a vested retirement allowance normally would begin;

                  (ii)      ended State service with at least 16 years of creditable service;

                  (iii)      ended State service on or before June 30, 1984;

                  (iv)      retired directly from State service with a State retirement allowance on or after July 1, 1984, and had at least 5 years of creditable service; or

                  (v)      retired directly from State service with a State disability retirement allowance on or after July 1, 1984.

            (2)      (i)      The surviving spouse or dependent child of a deceased retiree who was eligible to enroll may enroll and participate in the health insurance benefit options established under the Program as long as the spouse or child is receiving a periodic allowance under Division II of this article or the Maryland Transit Administration Retirement Plan under § 7-206 of the Transportation Article.

                  (ii)      Subparagraph (i) of this paragraph does not apply to a deceased retiree's spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit under Division II of this article or a lump-sum payment of benefits under the Maryland Transit Administration Retirement Plan under § 7-206 of the Transportation Article.

      (c)      (1)      If a retiree receives a State disability retirement allowance or has 16 or more years of creditable service, the retiree or the retiree's surviving spouse or dependent child is entitled to the same State subsidy allowed a State employee.

            (2)      In all other cases, if a retiree has at least 5 years of creditable service, the retiree or the retiree's surviving spouse or dependent child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the retiree's creditable service up to 16 years.

            (3)      Notwithstanding paragraph (2) of this subsection and subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State Racing Commission, for the purposes of determining a retiree's State subsidy, creditable service shall be determined with respect to service as an additional employee or agent beginning from the initial date of employment or January 1, 1986, whichever is later.