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

Notwithstanding section 53 of chapter 44 of the General Laws or any other general or special law to the contrary, the town of Bellingham may establish a separate fund to be known as the Compensated Absence Fund, which the town treasurer shall keep separate and apart from all other monies of the town, and into which shall be deposited all income derived from the investment of funds that may be appropriated by the town to such fund and the proceeds of any appropriation, grants, transfers or gifts received by the town for deposit in the fund. Any income derived from the investment or reinvestment of amounts held in the fund shall remain with and become part of the fund. The town treasurer shall be the custodian of the fund and shall make an account of the fund at each annual town meeting. Any funds held in the fund shall constitute trust funds within the meaning of section 54 of chapter 44 of the General Laws. Monies in the fund may be expended for the payment of final compensated absence as provided by union contract or by law for employees of the town.