"NEW SECTION.  Sec. 1   A new section is added to chapter 41.05 RCW to read as follows:
     From September 1, 2011, through August 31, 2014, the health care authority shall provide an optional subsidy of two hundred fifty dollars per month for health benefit premiums to any member of plan 1 of the teachers' retirement system who:
     (1) Is ineligible for medicare;
     (2) Has signed an employment contract under RCW 28A.405.210 by May 20, 2011, for the 2011-12 school year and has not previously notified the school district of an intent to retire at the conclusion of the 2010-11 school year;
     (3) Applies for retirement under RCW 41.32.480 after May 20, 2011, and before September 1, 2011; and
     (4) Receives the first installment of a retirement allowance as provided under RCW 41.32.480 before October 31, 2011."