S T A T E O F N E W Y O R K
________________________________________________________________________
6099
2021-2022 Regular Sessions
I N A S S E M B L Y
March 10, 2021
___________
Introduced by M. of A. ABBATE -- 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; and to amend
the civil practice law and rules, in relation to statutorily exempt
payments
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:
§ 3219-A. PENSION DE-RISKING TRANSACTIONS WITH AN ANNUITY. (A) FOR
PURPOSES OF THIS SECTION: (1) "EMPLOYER" MEANS ANY PERSON ENGAGED IN
BUSINESS IN THIS STATE WHO HAS TWO OR MORE EMPLOYEES, BUT DOES NOT
INCLUDE THE STATE OR ANY POLITICAL SUBDIVISION THEREOF;
(2) "EMPLOYEE PENSION BENEFIT PLAN" MEANS AN "EMPLOYEE PENSION BENEFIT
PLAN", AS DEFINED IN 29 USC 1002(2)(A); AND
(3) "PENSION DE-RISKING TRANSACTION" MEANS ANY TRANSACTION THAT
INVOLVES THE TRANSFER OF PENSION BENEFITS (NOT INCLUDING HEALTH CARE
BENEFITS) FROM A PENSION PLAN PROTECTED UNDER THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT ("ERISA") TO A SUBSTITUTE PENSION BENEFIT PROVIDER
SUCH AS AN INSURANCE COMPANY LICENSED AND REGULATED UNDER STATE LAW.
(B) ANY INSURER ISSUING AN ALLOCATED OR UNALLOCATED GROUP ANNUITY
CONTRACT TO AN EMPLOYER OR AN EMPLOYEE DEFINED PENSION BENEFIT PLAN ON
BEHALF OF AN EMPLOYER, FOR THE PURPOSE OF PROVIDING RETIREMENT BENEFITS
TO EMPLOYEES OR FORMER EMPLOYEES ("RETIREES") OF THE EMPLOYER, WHICH
ANNUITY BENEFITS WILL NO LONGER BE PROTECTED UNDER THE FEDERAL EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974 ("ERISA") AND THE FEDERAL PENSION
BENEFIT GUARANTY CORPORATION ("PBGC") SHALL PROVIDE THE FOLLOWING INFOR-
MATION TO THE RETIREES PURSUANT TO REGULATIONS ADOPTED BY THE SUPER-
INTENDENT:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06527-01-1
A. 6099 2
(1) A CLEAR STATEMENT THAT PAYMENTS TO ANNUITANTS UNDER AN ANNUITY
CONTRACT ISSUED PURSUANT TO THIS SECTION ARE EXEMPT FROM THE CLAIMS OF
CREDITORS;
(2) A STATEMENT THAT THE RETIREES WILL NO LONGER HAVE PROTECTION UNDER
ERISA AND THE PBGC;
(3) THE IDENTITY AND CONTACT INFORMATION FOR THE NEW YORK LIFE AND
HEALTH INSURANCE GUARANTY ASSOCIATION, OR ANY SUBSTITUTE OR REPLACEMENT
GUARANTY ASSOCIATION THAT PROVIDES COVERAGE TO ANNUITANTS RESIDING IN
NEW YORK IN THE EVENT OF THE INSURER'S FINANCIAL IMPAIRMENT OR INSOLVEN-
CY, AS SET FORTH ON A PUBLICLY AVAILABLE WEBSITE SUCH AS THE WEBSITE
MAINTAINED BY THE LIFE INSURANCE COMPANY GUARANTY CORPORATION OF NEW
YORK (WWW.NYLIFEGA.ORG); AND
(4) MANDATORY ANNUAL DISCLOSURES TO ALL RETIREES WHOSE BENEFITS ARE
TRANSFERRED TO AN INSURANCE COMPANY OR ALTERNATIVE BENEFIT PROVIDER FOR
THE PURPOSE OF PROVIDING RETIREMENT BENEFITS, OF THE FOLLOWING: FUNDING
LEVELS OF ALL ASSETS RELATIVE TO EXPECTED LIABILITIES UNDER THE ASSUMED
PENSION BENEFIT SCHEDULES, INVESTMENT PERFORMANCE SUMMARY BY ASSET
CLASS, INVESTMENT PERFORMANCE DETAIL BY ASSET CLASS, EXPENSES ASSOCIATED
WITH ANY GROUP ANNUITY CONTRACT, AND CHANGES IN ACTUARIAL ASSUMPTIONS,
IF ANY.
(C) NO ALLOCATED OR UNALLOCATED GROUP ANNUITY CONTRACT ISSUED BY AN
INSURER TO AN EMPLOYER OR AN EMPLOYEE DEFINED PENSION BENEFIT PLAN ON
BEHALF OF AN EMPLOYER, FOR THE PURPOSE OF PROVIDING RETIREMENT BENEFITS
TO EMPLOYEES OR FORMER EMPLOYEES OF THE EMPLOYER, WHICH ANNUITY BENEFITS
WILL NO LONGER BE PROTECTED UNDER THE FEDERAL EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974 AND THE FEDERAL PENSION BENEFIT GUARANTY CORPO-
RATION MAY BE FURTHER TRANSFERRED OR ASSUMED BY ANOTHER INSURER WITHOUT
CONFIRMATION BY THE SUPERINTENDENT THAT THE INSURER ASSUMING THE OBLI-
GATIONS OF SUCH ALLOCATED OR UNALLOCATED GROUP ANNUITY CONTRACT HAS THE
FINANCIAL STRENGTH TO FULFILL ITS OBLIGATIONS UNDER SUCH CONTRACT. THE
APPROPRIATE STANDARD TO BE APPLIED BY THE SUPERINTENDENT SHALL BE 400%
OF COMPANY ACTION LEVEL RISK BASED CAPITAL WITH NO NEGATIVE TREND AS
DEFINED BY THE 2012 NAIC RISK-BASED CAPITAL (RBC) FOR INSURERS MODEL
ACT.
(D) THE PROCEEDS OF ANY ALLOCATED OR UNALLOCATED GROUP ANNUITY
CONTRACT ISSUED BY AN INSURER TO AN EMPLOYER OR AN EMPLOYEE DEFINED
PENSION BENEFIT PLAN ON BEHALF OF AN EMPLOYER, FOR THE PURPOSE OF
PROVIDING RETIREMENT BENEFITS TO RETIREES OF THE EMPLOYER, WHICH ANNUITY
BENEFITS WILL NO LONGER BE PROTECTED UNDER ERISA AND THE FEDERAL PBGC
SHALL BE EXEMPT FROM APPLICATION TO THE SATISFACTION OF MONEY JUDGMENTS
UNDER SECTION FIFTY-TWO HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND
RULES.
§ 2. Paragraph 2 of subdivision (l) of section 5205 of the civil prac-
tice law and rules, as amended by chapter 24 of the laws of 2009, is
amended to read as follows:
2. For purposes of this article, "statutorily exempt payments" means
any personal property exempt from application to the satisfaction of a
money judgment under any provision of state or federal law. Such term
shall include, but not be limited to, payments from any of the following
sources: social security, including retirement, survivors' and disabili-
ty benefits, supplemental security income or child support payments;
veterans administration benefits; public assistance; workers' compen-
sation; unemployment insurance; public or private pensions; railroad
retirement; and black lung benefits. "STATUTORILY EXEMPT PAYMENTS"
SHALL SPECIFICALLY INCLUDE ANY ANNUITY PROCEEDS WHOSE BENEFITS ARE
TRANSFERRED TO AN INSURANCE COMPANY OR ALTERNATIVE BENEFIT PROVIDER FOR
A. 6099 3
THE PURPOSE OF PROVIDING RETIREMENT BENEFITS PURSUANT TO SECTION THREE
THOUSAND TWO HUNDRED NINETEEN-A OF THE INSURANCE LAW IN A PENSION
DE-RISKING TRANSFER.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to all policies and contracts
issued, renewed, modified, altered, or amended on or after such date.