AN ACT AUTHORIZING THE TOWN OF HANOVER TO ESTABLISH AN OTHER POST EMPLOYMENT BENEFITS 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. As used in this act, the following words shall have the following meanings:
“GASB 43 and 45”, statements 43 and 45 of the Governmental Accounting Standards Board and its successors.
“Other postemployment benefits” or “OPEB”, postemployment benefits other than pensions as that term is defined in GASB 43 and 45, including postemployment healthcare benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a pension plan, excluding benefits defined as termination offers and benefits.
SECTION 2. (a) Notwithstanding any general or special law to the contrary, there shall be in the town of Hanover an OPEB Trust Fund. The town treasurer shall be the custodian of the OPEB Trust Fund and he shall invest and reinvest the amounts in the fund not needed for current disbursement consistent with the prudent investor rule.
(b) Beginning in fiscal year 2009, the OPEB Trust Fund shall be credited with all amounts appropriated or otherwise made available by the town for the purposes of meeting the current and future OPEB costs payable by the town. The appropriation shall not be returned to the treasury except by vote of the town. The OPEB Trust Fund shall be credited with all amounts contributed or otherwise made available by employees of the town for the purpose of meeting future OPEB costs payable by the town.
(c) Beginning in fiscal year 2009, payments for the purposes of meeting the town’s costs of OPEB under this act shall be made from the OPEB Trust Fund.
SECTION 3. This act shall take effect upon its passage.