At its April Town Meeting, members accepted a healthcare liability report from its Retiree Healthcare Study Committee established by the Board of Selectmen.

The report calls for healthcare phase-in appropriations of $600,000 in FY07, $1.2 million in FY08, $1.8 million in FY09, $2.4 million in FY10, and $2 million in FY11.

"By accepting the report, Town Meeting made a commitment, but any appropriations will have to be voted on by Town Meeting each year," said Chris Ketchen, the town's financial analyst. "One year's Town Meeting cannot legally bind next year's. "

David Kornwitz, chairman of the Wellesley Retirement Board, made the presentation to Town Meeting. He was assisted by Ketchen.

Home rule legislation, enacted by the Legislature last year, allows the town to establish a Group Insurance Liability Trust Fund under the supervision and management of the Retirement Board. It allows the fund to be invested in the same manner as the retirement fund.

The Committee's report emphasized the success of Wellesley's earlier established pension funding plan. Because of the success of the plan and its investments, the town has not had to make any pension appropriation in its budget since 1997.

Arnold Wakelin, the town's financial director was the architect of the pension funding plan. Wakelin, who died last year, had also drafted the insurance funding legislation.

"It would be financially difficult for any community to use Wellesley as a model for either pension or insurance funding," noted Association President Ralph White. "I give Wakelin (former Retirement Board Chairman), David Kornwitz and others credit. The town has the money, but had to be convinced to invest it wisely."

The Wellesley Healthcare Committee consists of Vincent Juliani, Chairman, Board of Selectmen; Harriet Warshaw, Selectman; Christopher Clark, Acting Executive Director; Marc Waldman, Treasurer; Robert Haws, Weston Wyatt Actuary; and David Kornwitz, Watson Wyatt Actuary.

In 2001, the town was responsible for the medical benefits of 657 former employees, including teachers, and their spouses. In 2004, that number grew to 832 former employees and their spouses.