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. Section 1 of chapter 472 of the acts of 1998 is amended by striking out the fourth sentence.
SECTION 2. Said section 1 of said chapter 472 is hereby further amended by adding the following 2 paragraphs:-
Notwithstanding section 54 of chapter 44 of the General Laws or any other general or special law to the contrary, the fund shall remain under the custodial care of the treasurer but shall be under the supervision and management of an independent and autonomous 7-member board consisting of the 5 members of the town’s contributory retirement board and 2 members appointed by the board of selectmen. The board may invest and reinvest the principal and interest of the fund under chapter 203C of the General Laws. The board may employ any qualified bank, trust company, corporation, firm or person to advise it on the investment of the fund and may pay from the fund for this advice and other services as determined necessary by the board. Procurement for these services shall be subject to the procurement procedures and rules followed by the town’s procurement department.
If any civil action is brought against a member of the board which necessitates the defense or settlement of the action by town counsel or outside counsel retained by town counsel on behalf of the board, the member shall be indemnified for all expenses incurred in the defense of the action and shall be indemnified for damages to the same extent as provided for public employees in chapter 258 of the General Laws if the claim arose out of acts performed by the member while acting within the scope of his official duties; provided, however, that no member of the board shall be indemnified for expenses incurred in the defense of an action, or damages awarded in an action, in which there is shown to be a breach of fiduciary duty, an act of willful dishonesty or an intentional violation of law by the member.
SECTION 3. This act shall take effect upon its passage.
Approved November 16, 2009.