(1) The department of administration may offer a health reimbursement arrangement as an approved benefit for all state employees or officers whose employer chooses to offer such a benefit to its employees or officers. All state employees or officers shall, for themselves and their eligible dependents, participate in a health reimbursement arrangement if the employer of such employees and officers chooses to offer the health reimbursement arrangement.
(2) For purposes of this section: “Health reimbursement arrangement” means an arrangement whereby employees may reimburse themselves for health care costs approved by the internal revenue service from a tax-exempt employee benefit trust known as a voluntary employees’ beneficiary association.
(3) “Voluntary employees’ beneficiary association” (VEBA) means a tax-exempt employee benefit trust governed under section 501(c)(9) of the Internal Revenue Code. A VEBA trust is managed by trustees elected by the employee members of the trust.
(4) The department of administration may promulgate rules to implement the provisions of this section.