S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2885
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. GOUNARDES, KAPLAN -- read twice and ordered printed,
   and when printed to be committed 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
              

 S. 2885                             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

 S. 2885                             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.