AN ACT ESTABLISHING A POST EMPLOYMENT HEALTH INSURANCE LIABILITY FUND IN THE TOWN OF SUDBURY.
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 of Sudbury may appropriate funds in order to offset the anticipated cost of health insurance contributions for retired employees, their spouses and eligible dependents and the surviving spouses and eligible dependents of deceased retirees. This amount shall be credited to a special fund to be known as the Post Employment Health Insurance Liability Fund. The fund shall be under the supervision and management of the town manager and under the custody of the town treasurer. The town treasurer 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 loan associations situated in the commonwealth or invest the funds in securities that are legal for the investment of funds of savings banks under the laws of the commonwealth. Any interest or other income earned by the fund shall be added to and become part of the fund. Amounts may be appropriated to the fund by any town meeting by a majority vote not to exceed the total liability developed by an actuarial study. Authorized disbursements shall be made from the fund in payment of contributions and premiums for the benefit of retirees and their eligible dependents and surviving spouses and for costs associated with conducting the actuarial study without further appropriation. The town manager may employ any qualified bank, trust company, corporation, firm or person for advice on the investment of the fund and or to prepare an actuarial study and may pay for this advice or service from this fund.
SECTION 2. This act shall take effect upon its passage.
Approved May 4, 2006.