The Town of Ellington does hereby authorize the creation of
a special fund to be known as the "Board of Education Medical Self-Insurance
Fund." The fund shall be used for the purchase of medical insurance
and services, payment of administrative costs, and the accumulation
of reserves for future medical insurance expenses for the employees
(active and retired) of the Ellington Board of Education and the employee's
dependents.
Based on the recommendation of the Town's consultants, the Board
of Finance and the Superintendent of Schools, the Board of Education's
annual budget shall include allocations to the fund in amounts reasonably
adequate to meet the fund's purposes. Contributions to the fund may
also be received from employees of the Ellington Board of Education
via insurance premium payments or copays.
Fund contributions may be invested, as deemed appropriate by
the Ellington Finance Officer, in (a) certificates of deposit with
either national or state banks located in the Town or any other Connecticut
town, (b) cash deposits with mutual savings banks located in the Town
or any other Connecticut town, or (c) securities in which public funds
may lawfully be invested. All income derived from such investments
shall be paid into the fund and become a part thereof.
The fund shall be in the custody of the Ellington Finance Officer and shall not become a part of the Town's general fund. The fund shall not be reduced or used for purposes other than those specifically provided in §
80-25 above. Except as otherwise specifically authorized in §
80-27 above, all fund contributions shall be deposited in an account wherein the fund's income shall accumulate until such time as expenditures from the fund are authorized by the Board of Education. The fund may be commingled, in the discretion of the Ellington Finance Officer, to maximize income and minimize management costs, provided that the fund shall always be accounted for as a separate fund.