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,
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
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
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
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
the actuary. Funds may be used for the purposes of the trust fund by
appropriation at any town meeting.
This act shall take effect upon its passage.