AN ACT AUTHORIZING THE TOWN OF LEXINGTON TO ESTABLISH A POST RETIREMENT INSURANCE LIABILITY FUND.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Notwithstanding any general or special
law to the
contrary, the town of Lexington may appropriate funds in
to offset the anticipated cost of premium payments for or direct payments to be
made to retired employees of the town and to any eligible surviving spouse of
dependents of deceased employees of the town. Any such amounts so appropriated
shall be credited to a special fund to be known as the Post Retirement
Liability Fund. Any interest or other income earned by such fund shall be
to and become a part of the fund. The Lexington contributory retirement board
shall be the custodian of such fund and may invest the monies held in the fund
accordance with the rules and regulations of the public employees retirement
administration commission and in accordance with any applicable general law.
amounts appropriated to or expended from such fund shall be so appropriated or
expended by a majority vote of the town which vote must be taken in accordance
with an actuarial schedule developed by the town. The actuarial schedule must
designed to reduce to zero any unfunded liability attributable to premium
payments for or direct payments to be made to retired employees of the town and
to any eligible surviving spouse of or the dependents of deceased employees of
the town. The Lexington contributory retirement board may employ any qualified
bank, trust company, corporation, firm or person to provide advice on the
investment of amounts held in the Post Retirement Insurance Liability Fund and
prepare any required actuarial study and may pay for any such advice or service
from amounts held in the fund.
This act shall take effect upon its passage.