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TITLE IV. CIVIL SERVICE,RETIREMENTS AND PENSIONS Genera Court Home
Mass. ov
CHAPTER 32B. CONTRIBUTORY GROUP GENERAL OR BLANKET INSURANCE FOR
PERSONS IN THE SERVICE OF COUNTIES, CITIES, TOWNS AND DISTRICTS,AND
THEIR DEPENDENTS
Chapter 32B: Section 20. Other Post Employment Benefits Liability Trust Fund; local option;
funding schedule
[Text of section added by 2008, 479 effective January 10, 2009.]
Section 20. A city, town, district, county or municipal lighting plant that accepts this section, may
establish a separate fund, to be known as an Other Post Employment Benefits Liability Trust Fund,
and a funding schedule for the fund. The schedule and any future updates shall be designed, consistent
with standards issued by the Governmental Accounting Standards Board, to reduce the unfunded
actuarial liability of health care and other post-employment benefits to zero as of an actuarially
acceptable period of years and to meet the normal cost of all such future benefits for which the
governmental unit is obligated. The schedule and any future updates shall be: (i) developed by an
actuary retained by a municipal lighting plant or any other governmental unit and triennially reviewed
by the board for a municipal lighting plant or by the chief executive officer of a governmental unit;
and (ii) reviewed and approved by the actuary in the public employee retirement administration
commission.
The board of a municipal lighting plant or the legislative body of any other governmental unit may
appropriate amounts recommended by the schedule to be credited to the fund. Any interest or other
income generated by the fund shall be added to and become part of the fund. Amounts that a
governmental unit receives as a sponsor of a qualified retiree prescription drug plan under 42 U.S.C.
1395w-132 may be added to and become part of the fund.
The custodian of the fund shall be: (i) a designee appointed by the board of a municipal lighting
plant; or (ii) the treasurer of any other governmental unit. Funds shall be invested and reinvested by
the custodian consistent with the prudent investor rule set forth in chapter 203C.
This section may be accepted in a city having a Plan D or Plan E charter by vote of the city council;
in any other city by vote of the city council and approval of the mayor; in a town by vote of the town
at a town meeting; in a district by vote of the governing board; in a municipal lighting plant by vote of
the board; and in a county by vote of the county commissioners.
http://www.mass.gov/legis/laws/mgl/32b-20.htm 3/16/2010