Comptroller Fiscal Year Memo Letter Head

May 8, 2013 

The Honorable Stephen M. Brewer, Chairman, Senate Ways and Means Committee
The Honorable Brian S. Dempsey, Chairman, House Ways and Means Committee
The Honorable James T. Welch, Senate Co-Chair of the Joint Committee on Health Care Financing
The Honorable Steven M. Walsh, House Co-Chair of the Joint Committee on Health Care Financing
The Honorable John F. Keenan, Senate Co-Chair of the Joint Committee on Public Health
The Honorable Jeffrey Sánchez, House Co-Chair of the Joint Committee on Public Health
Emme Schultz, Budget Director, Administration and Finance 

Re:  Tobacco Funds

In accordance with the requirement in Section 3 c. of Chapter 29D of the Massachusetts General Laws, I hereby certify the receipt of a deposit of Massachusetts’ share pursuant to the master settlement agreement (MSA) resulting from the action known as Commonwealth of Massachusetts v. Phillip Morris, Inc.  This amount is Massachusetts’ share of the funds withheld in connection with the 2005 non-participating manufacturers. 

On April 16, 2013, an annual payment of $208,828,671.36 was received and confirmed by Treasury.  On April 18, 2013, a payment was received for $44,506,000.06.  On April 26, 2013, a payment was received for $163,162.99. In accordance with section 152 of Chapter 68 of the Acts of 2011, 90% of the receipts are being transferred to the General Fund and 10% of the receipts are being transferred to the State Retiree Benefits Trust Fund (SRBTF), the latter transfer to fund the Commonwealth’s liability for retiree health benefits, also known as “Other Post Employment Benefits” (OPEB). The transfers to the SRBTF will increase by 10% each year, until in FY2022 100% of tobacco settlements will be deposited in the SRBTF.

I have also enclosed a spreadsheet showing the base payments projected in the MSA, actual payments received, as well as projected and actual payments to the law firms that represented the Commonwealth in the case.

Total receipts for the fiscal year are as follows:

Date

Amount

April 16, 2013

$208,828,671.36

April 18, 2013

$  44,506,000.06

April 26, 2013

$       163,162.99

 

 

Total Received for FY13 to date

$253,497,834.41

 

Sincerely,

Martin J. Benison
Comptroller

 

Enc. xls format of Tobacco Settlement Receipts - April 2013 Attch

MB/elh 

Cc:           
Trustees, Health Care Security Trust
Samuel Goldhar, House Ways and Means                
Douglas Howgate, Senate Ways and Means