Bill Text: NJ S2009 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires certain boards of education to select minimum of three financial institutions or pension management organizations to provide tax sheltered annuity plans.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Education Committee [S2009 Detail]
Download: New_Jersey-2024-S2009-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Senator O'Scanlon
SYNOPSIS
Requires certain boards of education to select minimum of three financial institutions or pension management organizations to provide tax sheltered annuity plans.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning retirement plan options for school district employees and supplementing chapter 66 of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A board of education of a school district with a student enrollment of at least 1,000 students that offers a 403(b) plan to school district employees pursuant to section 403(b) of the federal Internal Revenue Code (26 U.S.C. s. 403(b)) shall select a minimum of three financial institutions or pension management organizations to provide services to the 403(b) plan. If fewer than three financial institutions or pension management organizations are determined to be available, then the board of education shall select the number of available providers able to meet the requirements of this section.
b. A financial institution or pension management organization that provides services to a board of education under subsection a. of this section shall:
(1) enter into an agreement with the board of education that shall require the financial institution or pension management organization to provide in an electronic format all data necessary for the administration of the 403(b) plan as determined by the board of education; and
(2) provide all data required by the board of education to facilitate disclosure of all fees, charges, expenses, commissions, compensation, and payments to third parties related to investments offered under the 403(b) plan.
c. A board of education shall not be responsible for:
(1) any investment loss incurred under the 403(b) plan;
(2) the failure of any investment to earn any specific or expected return; and
(3) the failure of any investment to earn as much as any other investment opportunity or to cost less than any other investment opportunity, regardless of whether the other opportunity was offered to participants in the 403(b) plan.
2. This act shall take effect immediately.
STATEMENT
This bill requires a board of education of a school district with a student enrollment of at least 1,000 students that offers a 403(b) plan to school district employees to select a minimum of three financial institutions or pension management organizations to provide services to the 403(b) plan. If fewer than three such financial institutions or pension management organizations are available, the board of education must select the number of financial institutions or pension management organizations available to meet the requirements of the bill.
A financial institution or pension management organization that provides services to the 403(b) plan under the bill must: (1) enter into an agreement with the board of education that requires the financial institution or pension management organization to provide in an electronic format all data necessary for the administration of the 403(b) plan as determined by the board of education; and (2) provide all data required by the board of education to facilitate disclosure of all fees, charges, expenses, commissions, compensation, and payments to third parties related to investments offered under the 403(b) plan.
A board of education would not be responsible for any investment loss or failure of an investment to earn any specific return for the services provided by the selected financial institutions or pension management organizations providing services to the 403(b) plan.
