Chapter 40 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding after section 13C the following section:—Section 13D. Any city or town or district which accepts the provisions of this section by majority vote of its city council or the voters present at a town meeting or district meeting, may establish, and appropriate or transfer money to a reserve fund for the future payment of accrued liabilities for compensated absences due any employee or full-time officer of said city or town upon the termination of such employee’s or full-time officer’s employment. Said municipal or district treasurer shall maintain the reserve fund in an interest bearing account and interest earnings shall be added to the fund. Said city council, town meeting or district meeting may designate the municipal official to authorize payments from this fund, and in the absence of such a designation, it shall be the responsibility of the chief executive officer of said city, town or district.