(1) Elected officials, except supervisors under section 606, and appointed officials who are not employes of the township are not eligible for participation in any life, health, hospitalization, medical service or accident insurance coverage contract paid in whole or in part by the township.

(2) Any insurance coverage contract made by a township between January 1, 1959, and March 31, 1985, that includes or provides coverage for elected officials, except under section 606, or appointed township officials who are not employes of the township are not void or unlawful solely because the inclusion of those officials was subsequently found to be without lawful authority. No penalty, assessment, surcharge, forfeiture or disciplinary action of any kind may occur as a result of participation by those officials. Insurance benefits payable to insureds or their beneficiaries arising out of or on account of deaths, injuries, accidents or illnesses occurring before March 30, 1988, remain the property of the insureds or their beneficiaries.

(1) The benefit coverage may be provided to supervisor-employes under section 606.

(2) The board of supervisors may deduct from the employe's pay, salary or compensation the part of the premium or charge that is payable by the employe.

(3) Elected officials, except township supervisors under section 606, and appointed township officials who are not employes of the township are not eligible for participation in any pension or annuity contract paid in whole or in part by the township. No elected official, except under section 606, or appointed township official who is not an employe of the township included in a township-paid pension or annuity plan made by a township between January 1, 1959, and March 31, 1985, is subject to any penalty, assessment, surcharge, forfeiture or disciplinary action of any kind as a result of that participation. Any residual interest, value, refund of premium or benefits payable on or after March 31, 1985, arising out of the township-paid interest of the elected or appointed township officials is the exclusive property of the township.

(4) If an elected official, except supervisors under section 606, or an appointed official who is not an employe of the township personally contributed toward a township-sponsored pension plan or annuity, he shall receive a refund of his total contributions thereto plus any interest accumulated thereon. In lieu of a refund of contributions plus accumulated interest, a township official who personally contributed toward a pension or annuity plan in which he participated may elect to purchase that portion of his pension or annuity funded by the township. A qualified actuary, who shall report his determination under the act of December 18, 1984 (P.L. 1005, No. 205), known as the “Municipal Pension Plan Funding Standard and Recovery Act,”² shall determine the amount the official shall pay to the township to purchase the township-funded portion of the annuity or pension.