40 Pa. Stat. § 535
The Commonwealth of Pennsylvania, or any department or division thereof, and any county, city, borough, incorporated town, township, school district, vocational school district or institution district may and are hereby specifically authorized to make contracts of insurance with any insurance company or nonprofit hospitalization corporation or nonprofit medical service corporation authorized to transact business within the Commonwealth insuring its elected or appointed officers and employes or any class or classes thereof, or their dependents, under a policy or policies of group insurance covering life, health, hospitalization, medical service or accident insurance, and may contract with any such company granting annuities or pensions for the pensioning of such employes; and, for such purposes, may agree to pay part or all of the premiums or charges for carrying such contracts, and may appropriate out of its treasury any money necessary to pay such premiums or charges or portions thereof.
The proper officer, agency, board or commission of any of the above political divisions or subdivisions, having authority to enter into such contracts of insurance, are hereby authorized, enabled and permitted to deduct from the officer's or employe's pay, salary or compensation, such part of the premium as is payable by the officer or employe and as may be so authorized by the officer or employe in writing.
40 P.S. § 535