cost of providing a paid-up group health insurance policy for members and their surviving spouses covered under Title 49, Chapter 7, Governor's and Legislative Service Pension Act who:
        (i) retire after January 1, 1998;
        (ii) are at least 62 but less than 65 years of age;
        (iii) elect to receive and apply for this benefit to the group insurance division; and
        (iv) are active members at the time of retirement or have retired and continued insurance coverage with the group insurance division until the date of eligibility for the benefit under this Subsection (2).
        (b) The board shall annually report and the state shall pay the percentage described in Subsection (2)(c) of the cost of providing Medicare supplemental insurance for members and their surviving spouses covered under Title 49, Chapter 7, Governor's and Legislative Service Pension Act who:
        (i) retire after January 1, 1998;
        (ii) are at least 65 years of age; and
        (iii) elect to receive and apply for this benefit to the group insurance division.
        (c) The following percentages apply to the benefit described in
        Subsections (2)(a) and (b):
        (i) 100% if the member has 10 or more years of service;
        (ii) 80% if the member has 8 or more years of service;
        (iii) 60% if the member has 6 or more years of service; and
        (iv) 40% if the member has 4 or more years of service."

         Renumber remaining sections accordingly.