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Assembly Bill A8161A

2013-2014 Legislative Session

Provides protection to certain retirees from de-risking pension proposals

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

2013-A8161 - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3219-a, Ins L
Versions Introduced in 2015-2016 Legislative Session:
A2721

2013-A8161 - Summary

Provides protection to certain retirees from de-risking pension proposals.

2013-A8161 - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8161

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             August 30, 2013
                               ___________

Introduced  by  M. of A. KATZ -- read once and referred to the Committee
  on Insurance

AN ACT to amend the insurance law, in relation to  providing  protection
  to certain retirees from pension de-risking transactions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 3219-a
to read as follows:
  S 3219-A. PENSION DE-RISKING TRANSACTIONS WITH  AN  ANNUITY.  (A)  ANY
ANNUITY  ISSUED  BY AN INSURANCE COMPANY LICENSED TO DO BUSINESS IN THIS
STATE WHICH SELLS AN ANNUITY INTENDED TO  PROVIDE  PENSION  BENEFITS  TO
RETIREES OF ANY COMPANY, CORPORATION, LIMITED LIABILITY COMPANY OR ASSO-
CIATION SHALL INCLUDE THE FOLLOWING PROVISIONS, INCLUDING BUT NOT LIMIT-
ED TO:
  (1)  MANDATORY  DISCLOSURES, REGULATORY APPROVAL AND AN OPPORTUNITY TO
CHALLENGE OR OPT OUT OF ANY PENSION DE-RISKING TRANSACTION THAT ATTEMPTS
TO TRANSFER RETIREE BENEFITS FROM A FEDERAL EMPLOYEE  RETIREMENT  INCOME
SECURITY  ACT  ("ERISA") PROTECTED PLAN TO A SUBSTITUTE BENEFIT PROVIDER
NOT COVERED UNDER ERISA;
  (2) SUPPLEMENTAL PROTECTIONS IN THE FORM OF A THIRD PARTY GUARANTEE OR
REINSURANCE CONTRACT SO AS TO EQUAL THE SCOPE OF COVERAGE OFFERED BY THE
PENSION BENEFIT GUARANTY CORPORATION ("PBGC") AFTER AN ANNUITY  PROVIDER
INSOLVENCY  AND  SUBSEQUENT  DETERMINATION  OF ANY SHORTFALLS THAT MIGHT
ARISE AFTER NEW YORK LIFE  AND  HEALTH  INSURANCE  GUARANTY  ASSOCIATION
("NYLHIGA")  CONTRIBUTIONS  ARE  DETERMINED  SO SELECT RETIREES WITHIN A
PLAN ARE NOT UNFAIRLY DISCRIMINATED AGAINST;
  (3) THE PROVISION OF ADDITIONAL PROTECTIONS INCLUDING, BUT NOT LIMITED
TO, MANDATORY DISCLOSURES BY THE TRANSFERRING ENTITY AND THE  SUBSTITUTE
PENSION  BENEFIT  PROVIDER, UNIFORM FIDUCIARY STANDARDS AND DISCLOSURES,
UNIFORM AND EQUIVALENT PROTECTION FROM CREDITORS  AND  BANKRUPTCY  TRUS-
TEES;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11644-02-3

co-Sponsors

multi-Sponsors

2013-A8161A (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3219-a, Ins L
Versions Introduced in 2015-2016 Legislative Session:
A2721

2013-A8161A (ACTIVE) - Summary

Provides protection to certain retirees from de-risking pension proposals.

2013-A8161A (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8161--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             August 30, 2013
                               ___________

Introduced  by  M. of A. KATZ -- read once and referred to the Committee
  on Insurance -- committee discharged, bill amended, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT to amend the insurance law, in relation to providing information
  to pensioners for de-risking pension proposals

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 3219-a
to read as follows:
  S  3219-A.  PENSION  DE-RISKING  TRANSACTIONS WITH AN ANNUITY. (A) ANY
ANNUITY ISSUED BY AN INSURANCE COMPANY LICENSED TO DO BUSINESS  IN  THIS
STATE  WHICH  SELLS  AN  ANNUITY INTENDED TO PROVIDE PENSION BENEFITS TO
RETIREES OF ANY COMPANY, CORPORATION, LIMITED LIABILITY COMPANY OR ASSO-
CIATION SHALL INCLUDE THE FOLLOWING PROVISIONS, INCLUDING BUT NOT LIMIT-
ED TO:
  (1) MANDATORY DISCLOSURES, REGULATORY APPROVAL AND AN  OPPORTUNITY  TO
CHALLENGE OR OPT OUT OF ANY PENSION DE-RISKING TRANSACTION THAT ATTEMPTS
TO  TRANSFER  RETIREE BENEFITS FROM A FEDERAL EMPLOYEE RETIREMENT INCOME
SECURITY ACT ("ERISA") PROTECTED PLAN TO A SUBSTITUTE  BENEFIT  PROVIDER
NOT COVERED UNDER ERISA;
  (2) ALLOWING RETIREES RECEIVING PENSION BENEFITS THE OPTION TO REQUEST
A  LUMP  SUM  CASH  OUT  OPTION SUBJECT TO CERTAIN MANDATORY DISCLOSURES
REGARDING THE TAX CONSEQUENCES AND  DISSIPATION  RISKS  ASSOCIATED  WITH
LUMP  SUM DISTRIBUTIONS AND INDEPENDENT LEGAL OR FINANCIAL ADVISOR OVER-
SIGHT;
  (3) THAT ALL DE-RISKING TRANSACTIONS BE  VETTED  AND  APPROVED  BY  AN
INDEPENDENT  THIRD  PARTY CREATED BY AND WITH THE APPROVAL OF THE SUPER-
INTENDENT; AND
  (4) THAT ALL SUBSEQUENT TRANSFERS OF GROUP ANNUITY CONTRACTS BE VETTED
AND APPROVED BY AN INDEPENDENT THIRD  PARTY  CREATED  BY  AND  WITH  THE
APPROVAL OF THE SUPERINTENDENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11644-04-3

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