AN ACT AUTHORIZING THE TOWN OF HINGHAM TO ESTABLISH A RETIREE HEALTHCARE LIABILITY 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 Hingham may appropriate funds in order to offset the anticipated cost of health care for retired employees, and the eligible surviving spouse or dependents of deceased employees. Such funds shall be credited to a special fund to be known as the Retiree Healthcare Liability Trust Fund. Any interest or other income of the fund shall be added to and become part of such fund. Any funds in said Retiree Healthcare Liability Trust Fund shall be trust funds within the meaning of section 54 of chapter 44 of the General Laws. Amounts may be expended from the fund only in accordance with an actuarial schedule of payments developed by a nationally recognized independent actuarial consulting firm and designed to reduce to zero any unfunded liability attributable to the payment of health care costs. The schedule shall be designed to maintain such costs as a fixed ratio of the current and predicted future payroll of the town or such other acceptable actuarial method that is approved by the actuary. Funds may be used for the purposes of the trust fund by appropriation at any town meeting.
SECTION 2. This act shall take effect upon its passage.