(a) A retired employee or official may participate in the healthcare plan of the municipality from which he or she retired if he or she:

(1) Is receiving a retirement benefit from the Arkansas Local Police and Fire Retirement System, Arkansas Public Employees' Retirement System, or a local pension fund;

(2) Pays both the employer and the employee contribution to the healthcare plan;

(3) Is not covered at any time during retirement by another healthcare plan; and

(4) Notifies his or her employer within thirty (30) days after the official date of retirement of his or her intent to participate in the healthcare plan of the municipality.

(b) A retired employee or official who participates in a municipality's healthcare plan under subsection (a) of this section may include his or her dependents in the retiree's healthcare plan if the retired employee or official pays both the employer and employee contribution to the healthcare plan for his or her dependents.

(c) Each municipality may choose to pay any portion of the employer and employee contributions to the municipality's healthcare plan so long as each retired official and each retired employee of the municipality from which he or she retired is treated equally with regard to the dollar amounts that are paid by the municipality toward healthcare coverage of each retiree.

(d) The retired municipal official or retired municipal employee shall pay the amount of the healthcare premium that is not paid by the employer.

(e) Each municipality shall by policy or ordinance establish the criteria for eligibility as a retiree under this section.