AN ACT AUTHORIZING THE TOWN OF ARLINGTON TO ESTABLISH A POST EMPLOYMENT HEALTH INSURANCE TRUST FUND.
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. The town meeting of the town of Arlington may appropriate funds in order to offset the anticipated cost of premium payments for or direct payments to retired employees, and the eligible surviving spouse or dependents of deceased employees. Such amount shall be credited to a special fund to be known as the Retiree Insurance Liability Fund. Any interest or other income shall be added to and become part of such fund. The treasurer of the town shall be the custodian of such fund, and may deposit the proceeds in national banks or invest the proceeds by deposit in savings banks, cooperative banks, or trust companies organized under the laws of the commonwealth or in federal savings and local associations situated in the commonwealth or invest the same in such securities as are legal for the investment of funds of savings banks under the laws of the commonwealth. The treasurer may employ any qualified bank, trust company, corporation, firm or person to advise him on the investment of the fund and may pay for such advice. Amounts may be appropriated to such fund for such purposes at the annual town meeting by majority vote. Amounts may be expended from such funds only in accordance with an actuarial schedule of payments developed by the town manager and approved by the actuary in the division of insurance and designed to reduce to zero any unfunded liability attributable to the payment of such premiums or direct payments. Such schedule shall be designed to maintain such premium costs or direct payments as a fixed ratio of the current and predicated future payroll of the governmental unit or such other acceptable actuarial method that is approved by the actuary in the division of insurance. Funds may be utilized for the purposes of this fund by appropriation as voted by any annual town meeting of the town.
SECTION 2. This act shall take effect upon its passage.