If the retention is consistent with the terms of any agreement between the State and the insurance company which issued the policies pursuant to the Program or with the plan of self-insurance of the Program:
1. A participating state officer or employee who retires on or after July 1, 1985, may retain the state officer’s or employee’s membership in and any dependents’ coverage by the Program.
2. A participating Legislator who retires from the service of the State or who completes 8 years of service as such may retain the Legislator’s membership in and any dependents’ coverage by the Program.