**SCHOOL DISTRICTS: INSURANCE:**  **RETIRED EMPLOYEES:**  **School district** **is not**  **required to**  **make available**  **same level**  **of insurance coverage**  **to retired**  **employees 65**  **years of** **age and**  **older as**  **that provided**  **to active**  **employees. Minn. Stat.§ 471.61, subd.**  **2b. 16lb-7**  **(Cr. ref.**  **59a-25), 125a-28,** 

**469a-7 December**  **I 5,**  **1 998**  **Patricia A.**  **Maloney AmyE.**  **Mace Ratwik,**  **Roszak &**  **Maloney, P.A.**  **300 Peavey**  **Building 730**  **Second Avenue**  **South Minneapolis.**  **MN 55402 Dear**  **Ms. Maloney**  **and Ms.**  **Mace: In**  **your letter**  **to Attorney**  **General Hubert**  **H. Humphrey**  **III. you**  **submit substantially** **the following:**  **FACTS Independent**  **School District**  **No. 622.**  **North St.**  **Paul-Maplewood provides**  **group hospital.**  **medical and**  **dental insurance**  **coverage to**  **its employees.**  **The school**  **district also**  **allows former**  **employees and**  **their dependents**  **to continue**  **to participate**  **in the**  **same hospital.**  **medical and**  **dental insurance group**  **that th** **e e mployee**  **particip ated**  **in immediately**  **before retirement.**  **You then**  **ask substantially**  **the following:**  **QUESTION Is**  **the school**  **district required**  **by Minn. Stat. s**  **471.6 I.**  **subd. 2b**  **to make**  **available to**  **an eligible**  **employee who**  **is 65**  **years or**  **age or**  **older the**  **same level**  **of coverage**  **that the**  **employee received**  **prior to**  **retirement"? OPINION**  **We answer**  **your question**  **in the**  **negatiw. \!inn.**  **Stat. �**  **.+71.61. subd.**  **2b provides**  **in part:**  **,\ unit**  **of Inca!**  **go\'crnmcnt must**  **allow a former**  **employee and**  **the employee·s**  **dependents to rnntinuc lo ranicipate**  **indctinitdy in**  **the employer-sponsored** **Patricia A. Maloney Amy**  **E. Mace**  **Page2**

**hospital. medical.**  **and dental**  **insurance group**  **that the**  **employee participated**  **in immediately**  **before retirement**  **under the**  **following conditi** **ons: (** **a**

**)** ***** ***** ***** **(b)s Until**  **the former**  **employee reaches**  **age 65,**  **the former**  **employee ands**  **dependents must**  **be pooled**  **in the**  **same group**  **as active**  **employees for** **purposes ofs**  **establishing premiums**  **and coverage for**  **hospital. medical and**  **dental insurance.s**  **(Emphasis added.)**  **We note**  **that the**  **statute does**  **not by**  **its terms**  **entitle retired**  **employees to**  **retain any**  **particular level**  **of coverage.**  **Rather it**  **entitles them**  **to continue**  **to participate**  **in the**  **group in** **which they**  **previoasly participated.**  **How.ever in**  **that respect.**  **tht:se provisions**  **are not**  **a model**  **of clarity.**  **The initial**  **clause indicates**  **generally that**  **the retired**  **employee may**  **participate in** **the same**  **employee sponsored**  **insurance "group** **· •**  **indefinitely, while** **the second requires**  **inclusion in**  **the same**  **· 'group** **.. as** **active employees**  **for premium**  **and coverage**  **purposes only**  **until age**  **65. Resolution**  **of this**  **seeming contradiction.**  **pursuant to**  **esta blished**  **rules of** **statutory construction.**  **leads to**  **the conclusion**  **that. while**  **retired employees may**  **participate indefinitely**  **in**

**an employer-sponsored**  **group pian.**  **the premium**  **and level**  **of coverage**  **provided to**  **retired employees**  **65 years**  **of age**  **and over**  **may differ**  **from that**  **provided to**  **then-active employees.**  **Minn. Stat. � 645.17(2) provides**  **that the**  **legislature intends**  **the entire**  **law to**  **be effective**  **and certain.**  **As noted**  **by the**  **Court in**  **State v.**  **Pem·. 524**  **N.\V.2d 21**  **(Minn. App.**  **1994), "'a**  **construc tion**  **which would**  **�iw no**  **effect to**  **fa] ran**  **of the**  **statute. is**  **to be**  **avoided."" Id.**  **at 23.**  **Minn. Stat. � 645.26.**  **subd. I**  **provides that**  **··when a general**  **provision in**  **a la.w**  **is in**  **conflict with**  **a special**  **provision of** **the same**  **or another**  **law. the**  **two shall**  **be construed.**  **if possible.**  **so that**  **effect mav**  **he gi,·cn to both:·**  **!!'that cannot**  **be done**  **then the**  **special provision**  **will prevail.** **Patric ia**  **A. Maloney**  **Amy E.**  **Mac e**  **Page3**

**In this**  **situation subparagraph**  **(b) pla** **inl y i** **s more specific**  **and limiting**  **than the**  **initial clause**  **of the**  **subdivision. Furthermore.**  **if subdivision**  **2b were**  **interpreted to**  **require that**  **the**
**same coverage**  **be made**  **avail.:.ble to**  **retired employees**  **before and**  **after age**  **65, no**  **effect would**  **be given**  **to that**  **part of** **subparagraph (b)**  **which limits**  **the mandatory**  **inclusion with** **the active**  **employee group**  **to retired**  **employees under**  **65 years**  **of age.**  **To have**  **meaning subparagraph**  **(b) must**  **be in**  **terpreted to**  **imply that**  **premium and**  **coverage levels**  **for employees**  **65 years** **of age** **and older**  **may differ**  **from those**  **for active**  **employees and**  **younger retirees.**  **Thus it**  **is our**  **opinion that**  **local government**  **emp.loyers including**  **District 622**  **are not_**  **required to**  **make available**  **to retired**  **employees 65**  **years of** **age or** **older the**  **same coverage**  **as that**  **provided at**  **tile time**  **of retirement.**  **or that**  **available to**  **currently active**  **employees.**
**Very truly**  **yours. HUBERT**  **H. HUMPHREY**  **Ill Attorney**  **General**

**KENNETH E. RASCHKE.**  **JR. Assistant Attorney**  **General**