Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Notwithstanding any general or special law to the contrary, the town of Lexington may appropriate funds in order to offset the anticipated cost of premium payments for or direct payments to be made to retired employees of the town and to any eligible surviving spouse of or dependents of deceased employees of the town. Any such amounts so appropriated shall be credited to a special fund to be known as the Post Retirement Insurance Liability Fund. Any interest or other income earned by such fund shall be added to and become a part of the fund. The Lexington contributory retirement board shall be the custodian of such fund and may invest the monies held in the fund in accordance with the rules and regulations of the public employees retirement administration commission and in accordance with any applicable general law. Any amounts appropriated to or expended from such fund shall be so appropriated or expended by a majority vote of the town which vote must be taken in accordance with an actuarial schedule developed by the town. The actuarial schedule must be designed to reduce to zero any unfunded liability attributable to premium payments for or direct payments to be made to retired employees of the town and to any eligible surviving spouse of or the dependents of deceased employees of the town. The Lexington contributory retirement board may employ any qualified bank, trust company, corporation, firm or person to provide advice on the investment of amounts held in the Post Retirement Insurance Liability Fund and to prepare any required actuarial study and may pay for any such advice or service from amounts held in the fund.

SECTION 2. This act shall take effect upon its passage.