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Assembly Bill A2721

2015-2016 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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2015-A2721 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add ยง3219-a, Ins L
Versions Introduced in 2013-2014 Legislative Session:
A8161

2015-A2721 (ACTIVE) - Summary

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

2015-A2721 (ACTIVE) - Bill Text download pdf 

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

                                  2721

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced  by  M.  of  A. KATZ -- Multi-Sponsored by -- M. of A. GALEF,
  McLAUGHLIN, MONTESANO, SKARTADOS, TENNEY,  WEPRIN  --  read  once  and
  referred to the Committee on Insurance

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.
                                                           LBD02147-02-5

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