(2)__If the retiree is not eligible for Medicare, the cost of the health insurance coverage for active state employees pursuant to subchapter 2.

3.__Administration.__The Department of Administrative and Financial Services shall administer the payment of subsidies under subsection 2.__The department shall attempt to enter into agreements with health insurance providers to bill the department directly for premiums.__If the department is unable to form such agreements, the department shall pay the subsidy as reimbursement to retirees after the retirees have paid the premium.

§286-N.__Fund

1.__Fund created;__revenue sources.__The Retired Law Enforcement Officer and Firefighter Health Insurance Dedicated Revenue Fund, referred to in the subchapter as "the fund," is established in the Department of Administrative and Financial Services as a__nonlapsing, dedicated account. The fund consists of:

A.__Employee contributions collected pursuant to section 286-O;

B.__Taxes collected on certain property and casualty insurance premiums pursuant to Title 36, section 2513-C;

C.__Interest earned on investments of the fund;__and

D.__Any other private or public funds contributed to the fund.

2.__Uses.__The fund must be used to pay the subsidy provided for in section 286-M for implementation costs for that subsidy, and for no other purpose.

§286-O.__Employee contributions to fund

A contribution of 1.5% of compensation must be paid to the fund by each law enforcement officer and each firefighter who participates as an active employee in a Maine State Retirement System plan described in section 286-M, subsection 1, paragraph B.__The employer of the officer or firefighter shall remit the contribution to the fund.__The fund is a pooled account and individual officers and firefighters do not have a right to funds deposited in the fund, except as provided in section 286-M.