This is not the official budget document.

General Appropriations Act FY2008

Treasurer and Receiver-General
Data Current as of:  10/29/2007



Establish State Retiree Benefits Trust Fund

SECTION 8.   Chapter 32A of the General Laws is hereby amended by adding the following section:-

Section 24. (a) There shall be and set up on the books of the commonwealth a fund to be known as the State Retiree Benefits Trust Fund, hereinafter in this section referred to as the fund. The pension reserves investment management board established pursuant to section 23 of chapter 32, in this section called the board, shall be the trustee of and shall administer the fund. For the purposes of this section the secretary of the executive office of administration and finance, or his designee, and the executive director of the group insurance commission established pursuant to section 3 of chapter 32A or his designee, shall be members of the board. The provisions of section 23 of chapter 32 shall apply to the management of the fund. The fund shall be an expendable trust not subject to appropriation.

(b) The purpose of said fund shall be for depositing, investing and disbursing amounts set aside solely to meet liabilities of the state employees' retirement system for health care and other non-pension benefits for retired members of the system. There shall be credited to the fund any revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund, and any gifts, grants, private contributions, investment income earned on the fund's assets and all other sources. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund.

(c) Upon request of the group insurance commission established, 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; provided, however, that said group insurance commission shall remain responsible for administering the payment of, and determining the terms, conditions, schedule of benefits, carriers and eligibility for, health care and other non-pension benefits for retired members of the state retirement system.

(d) Upon authorization by the board, any other retirement system of the commonwealth may participate in the fund using the same procedures required for participation in the PRIT Fund pursuant to section 22 of chapter 32.

(e) The fund shall be revocable only when all such health care and other non-pension benefits, current and future, payable pursuant to this chapter have been paid or defeased.

 

Transfer Health Care Security Trust to General Fund

SECTION 53.   ** Item is being returned for amendment. Text of recommendations can be found in Attachment E.



Notwithstanding any general or special law to the contrary, the comptroller shall not less than 10 days after the effective date of this act, transfer $150,000,000 to the General Fund from the Health Care Security Trust Fund, established in section 1 of chapter 29D of the General Laws.

 

Transfers Among Health Care Funds

SECTION 55.   Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the state treasurer, the secretary of administration and finance and the secretary of health and human services, develop a schedule for transferring funds among the General Fund, the Commonwealth Care Trust Fund established pursuant to section 2OOO of chapter 29 of the General Laws and the Health Safety Net Trust Fund, established in section 36 of chapter 118G of the General Laws. Not less than $789,650,000 shall be transferred from the General Fund to the Commonwealth Care Trust Fund and not less than $33,900,000 shall be transferred from the Commonwealth Care Trust Fund to the Health Safety Net Trust Fund; provided further, that the executive office of health and human services shall make expenditures required for fiscal year 2008 pursuant to section 122 of chapter 58 of the acts of 2006. The schedule shall provide for transfers in increments considered appropriate to meet the cash flow needs of these funds. The transfers shall not begin before July 1, 2007 and shall be completed on or before June 30, 2008. The secretary of administration and finance, in consultation with the secretary of health and human services and the executive director of the commonwealth health insurance connector, shall on a quarterly basis evaluate the revenue needs of the health safety net program funded by the Health Safety Net Trust Fund and the Commonwealth Care subsidized health insurance program funded from the Commonwealth Care Trust Fund, and if necessary, transfer monies between these funds for the purpose of ensuring that sufficient revenues are available to support projected program expenditures. The secretary of health and human services in consultation with the secretary of administration and finance and the executive director of the commonwealth health insurance connector shall submit a quarterly report to the house and senate committees on ways and means and joint committee on healthcare financing which shall include, but not be limited to, the projected and actual expenditures and revenues for the Commonwealth Care Trust Fund and any transfers made between the Health Safety Net Trust Fund and the Commonwealth Care Trust Fund.

 

MassHealth Provider Supplemental Payments

SECTION 57.   Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the office of the state treasurer, the executive office of administration and finance, and the executive office of health and human services, develop a schedule and make a series of transfers not to exceed $346,000,000 from the General Fund to the MassHealth provider payment account in the Medical Assistance Trust Fund established pursuant to section 2QQQ of chapter 29 of the General Laws; provided that, the comptroller has determined that General Fund revenues are sufficient to accommodate said schedule of transfers. Any increase in payment made from said trust totaling an amount greater than $251,000,000 in fiscal year 2008 shall be made only after the secretary of the executive office of health and human services certifies that any said increase in payments from said trust shall not exceed the negotiated limit for section 1115 waiver spending. The secretary of health and human services shall notify, in writing, the house and senate committees on ways and means and the joint committee on healthcare financing of said certification within 15 days of such certification.

 

Pension Cost of Living Adjustment

SECTION 66.   Notwithstanding any general or special law to the contrary, the amounts transferred pursuant to subdivision (1) of section 22C of chapter 32 of the General Laws shall be made available for the Commonwealth's Pension Liability Fund, established in section 22 of said chapter 32. The amounts transferred pursuant to said subdivision (1) of said section 22C of said chapter 32 shall meet the commonwealth's obligations under said section 22C of said chapter 32, including retirement benefits payable by the state employees' and the state teachers' retirement systems, for the costs associated with a 3 per cent cost-of-living adjustment pursuant to section 102 of said chapter 32, the reimbursement of local retirement systems for previously authorized cost-of-living adjustments pursuant to said section 102 of said chapter 32, and for the costs of increased survivor benefits pursuant to chapter 389 of the acts of 1984. The state board of retirement and each city, town, county and district shall verify these costs, subject to the rules adopted by the treasurer. The treasurer may make payments upon a transfer of funds to reimburse certain cities and towns for pensions to retired teachers, including any other obligations which the commonwealth has assumed on behalf of any retirement system other than the state employees' or state teachers' retirement systems and also including the commonwealth's share of the amounts to be transferred pursuant to section 22B of said chapter 32 and the amounts to be transferred pursuant to clause (a) of the last paragraph of section 21 of chapter 138 of the General Laws. All payments for the purposes described in this section shall be made only pursuant to distribution of monies from the fund, and any distribution and the payments for which distributions are required shall be detailed in a written report filed quarterly by the commissioner of administration with the house and senate committees on ways and means and the joint committee on public service in advance of such distribution. Distributions shall not be made in advance of the date on which a payment is actually to be made. The state board of retirement may expend an amount for the purposes of the board of higher education's optional retirement program pursuant to section 40 of chapter 15A of the General Laws. To the extent that the amount transferred pursuant to said subdivision (1) of said section 22C of said chapter 32 exceeds the amount necessary to adequately fund the annual pension obligations, the excess amount shall be credited to the Pension Reserves Investment Trust Fund of the commonwealth for the purpose of reducing the unfunded pension liability of the commonwealth.

 

Study Commission on Retiree Benefit Liability

SECTION 82.   Notwithstanding any general or special law to the contrary, there shall be a special commission to investigate and study the commonwealth's liability for paying retiree health care and other nonpension benefits. The commission shall specifically examine further legislation necessary to comply with statement number 43 and statement number 45 of the Government Accounting Standards Board, a possible amortization schedule to fund the commonwealth's liability and, alternatively, state borrowing against future tobacco litigation proceeds to fund the commonwealth's liability for said retiree healthcare and other non-pension benefits. The commission shall consist of the chairs of the joint committee on public service, who shall chair the commission, the chairs of the house and senate committees on ways and means, the secretary of administration and finance, or his designee, the state treasurer, or his designee, the state comptroller, or his designee, the executive director of the pension reserves investment management board or his designee, the house minority leader or his designee, the senate minority leader or his designee, and the executive director of the group insurance commission or his designee. The commission shall report its findings and recommendations, including any proposed legislation, to the clerks of the senate and house of representatives and to the chairs of the house and senate committees on ways and means on or before December 31, 2007.