By Mr. Linsky of Natick, petition (accompanied by bill, House, No. 2644) of David Paul Linsky and others that cities and towns be authorized to establish post-retirement insurance liability funds.  Public Service.

 

The Commonwealth of Massachusetts

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PETITION OF:

 

David Paul Linsky

Gale D. Candaras

Jennifer L. Flanagan

Bruce E. Tarr

J. James Marzilli, Jr.

James E. Timilty

Michael E. Festa

Alice Hanlon Peisch

Richard T. Moore

John W. Scibak

Bradley H. Jones, Jr.

Cory Atkins

Patricia D. Jehlen

John V. Fernandes

 

 

 

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In the Year Two Thousand and Seven.

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 An Act authorizing the cities and towns of the Commonwealth 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, as follows:

 

SECTION 1. Any city or town which accepts the provisions of this act may appropriate funds in order to offset the anticipated cost of premium payments for or direct payments to retired employees and the eligible surviving spouses or dependents of deceased employees.  Such amounts shall be credited to a special fund to be known as the Post Retirement Insurance Liability Fund.  Any interest or other income earned by the fund shall be added to and become part of the fund.  The treasurer of the city or town shall be the custodian of the fund and 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 in securities as provided for in Chapter 32 of the General Laws.  Amounts shall be appropriated to or expended from such fund only in accordance with an actuarial schedule developed by the city or town.  Such schedule shall be designed to reduce to zero any unfunded liability attributable to the payment of such premiums or direct payments.  Such schedule shall also be designed to maintain appropriations as a fixed ratio of the current and predicted future payroll of the city or town.  The treasurer of a city or town may employ any qualified bank, trust company, corporation, firm or person for advice on the investment of the fund and to prepare an actuarial study and may pay for such advice and service from the fund.