Outside Section 14

Establish State Retiree Benefits Trust Fund

SECTION 14.   Chapter 32A of the General Laws is hereby amended by adding the following section:-

          Section 24. (a) There shall be a State Retiree Benefits Trust Fund, in this section called the fund, for the purpose of depositing, investing and disbursing amounts set aside solely to meet liabilities of the state retirement system for health care and other non-pension benefits for retired members of the system. The trust shall be revocable only when all such benefits, current and future, under this chapter 32A have been paid or defeased.
          (b) The PRIM board established by section 23 of chapter 32, in this section called the board, shall be the trustee of and shall administer the fund, and for the purposes of this section the secretary of administration and finance and the executive director of the group insurance commission, or their designees, shall be members of the board. Except as otherwise provided in this section, said section 23 shall apply to the management of the fund.
          (c) Ninety per cent of the monies received in any fiscal year as a result of any claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes including, but not limited to, the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378, shall be deposited in the fund. The remaining 10 per cent of these monies shall be deposited in the General Fund, to be used subject to appropriation for tobacco control programs.
          (d) The board may expend amounts in the fund without further appropriation to pay the costs of health care and other non-pension benefits for retired members of the state retirement system, at the request of the group insurance commission.
          (e) The group insurance commission shall remain responsible for administering the payment of and determining eligibility for health care and other non-pension benefits for retired members of the state retirement system.
          (f) Any other retirement system of the commonwealth may participate in the fund, using the same procedures as participation in the PRIT Fund under section 22 of chapter 32, if the board decides to allow such participation.
 
 

Summary:
This section establishes the State Retiree Benefits Trust Fund, to pay the costs of health care and other non-pension benefits for retired members of the state retirement system. Eventually, 90% of tobacco settlement funds will be deposited in this Fund; the remaining 10% will be used for tobacco control programs.