By Ms. Atkins of Concord, petition (accompanied by bill, House, No. 4421) of Cory Atkins that the town of Concord be authorized to establish a post-retirement group insurance trust fund. Financial Services. [Local Approval Received.]

The Commonwealth of Massachusetts

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PETITION OF:

Cory Atkins

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In the Year Two Thousand and Seven.

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An Act authorizing the town of Concord to establish a post retirement group health insurance 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.  There is hereby established in the town of Concord a Post-Retirement Group Health Insurance Trust Fund for the purpose of meeting the future costs of premiums payable by the town on behalf of retired employees and eligible surviving spouses or dependents of deceased employees pursuant to the provisions of chapter 32B of the General Laws and acts in amendment thereof or in addition thereto.

SECTION 2.  Said fund shall be under the supervision and management of the town manager and under the custody of the town treasurer, but the town manager shall be authorized to employ any qualified bank, trust company, corporation, firm or person for investment management and custody purposes as an expense of the fund.  Said fund shall be credited with all amounts appropriated to it or otherwise made available by the town.

The town manager may also employ or contract for actuarial services as an expense of the fund.  Actuarial services obtained in support of the purposes of the fund may include but shall not be limited to the following: (a) measurement of the present value of future benefit attributable to the year earned, and (b) establishment and periodic updating of a schedule of funding levels required to amortize the existing initial unfunded actuarial liability over a period not in excess of 30 years and to amortize any additional unfunded actuarial liability over a period not in excess of 15 years from the year of the determination in which such additional liability is first recognized. Such information shall assist in determining the recommended annual appropriation to the fund.

SECTION 3.  The assets of the fund may be invested by the treasurer in accordance with the Prudent Investor Rule and any earnings or interest accruing from said investments shall remain with the fund and shall be expended only for the purposes of the fund, subject to appropriation.