Bill Text: NY S01092 | 2015-2016 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides protection to certain retirees from de-risking pension transactions.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO INSURANCE [S01092 Detail]

Download: New_York-2015-S01092-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        1092--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                    January 8, 2015
                                      ___________
       Introduced  by Sens. AVELLA, HOYLMAN, KRUEGER, MARCHIONE, SAVINO -- read
         twice and ordered printed, and when printed to  be  committed  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  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:
    1    Section 1. The insurance law is amended by adding a new section 3219-a
    2  to read as follows:
    3    S  3219-A.  PENSION  DE-RISKING  TRANSACTIONS WITH AN ANNUITY. (A) ANY
    4  INSURER ISSUING AN ALLOCATED OR UNALLOCATED GROUP ANNUITY CONTRACT TO AN
    5  EMPLOYER OR AN EMPLOYEE DEFINED PENSION BENEFIT PLAN  ON  BEHALF  OF  AN
    6  EMPLOYER,  FOR THE PURPOSE OF PROVIDING RETIREMENT BENEFITS TO EMPLOYEES
    7  OR FORMER EMPLOYEES ("RETIREES") OF THE EMPLOYER, WHICH ANNUITY BENEFITS
    8  WILL NO LONGER BE PROTECTED UNDER THE FEDERAL EMPLOYEE RETIREMENT INCOME
    9  SECURITY ACT OF 1974 ("ERISA") AND THE FEDERAL PENSION BENEFIT  GUARANTY
   10  CORPORATION  ("PBGC")  SHALL  PROVIDE  THE  FOLLOWING INFORMATION TO THE
   11  RETIREES PURSUANT TO REGULATIONS ADOPTED BY THE SUPERINTENDENT:
   12    (1) A CLEAR STATEMENT THAT PAYMENTS TO  ANNUITANTS  UNDER  AN  ANNUITY
   13  CONTRACT  ISSUED  PURSUANT TO THIS SECTION ARE EXEMPT FROM THE CLAIMS OF
   14  CREDITORS;
   15    (2) A STATEMENT THAT THE RETIREES WILL NO LONGER HAVE PROTECTION UNDER
   16  ERISA AND THE PBGC;
   17    (3) THE IDENTITY AND CONTACT INFORMATION FOR THE  NEW  YORK  LIFE  AND
   18  HEALTH  INSURANCE GUARANTY ASSOCIATION, OR ANY SUBSTITUTE OR REPLACEMENT
   19  GUARANTY ASSOCIATION THAT PROVIDES COVERAGE TO  ANNUITANTS  RESIDING  IN
   20  NEW YORK IN THE EVENT OF THE INSURER'S FINANCIAL IMPAIRMENT OR INSOLVEN-
   21  CY,  AS  SET  FORTH  ON A PUBLICLY AVAILABLE WEBSITE SUCH AS THE WEBSITE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02147-03-5
       S. 1092--A                          2
    1  MAINTAINED BY THE LIFE INSURANCE COMPANY  GUARANTY  CORPORATION  OF  NEW
    2  YORK (WWW.NYLIFEGA.ORG); AND
    3    (4)  MANDATORY  ANNUAL  DISCLOSURES TO ALL RETIREES WHOSE BENEFITS ARE
    4  TRANSFERRED TO AN INSURANCE COMPANY OR ALTERNATIVE BENEFIT PROVIDER  FOR
    5  THE  PURPOSE OF PROVIDING RETIREMENT BENEFITS, OF THE FOLLOWING: FUNDING
    6  LEVELS OF ALL ASSETS RELATIVE TO EXPECTED LIABILITIES UNDER THE  ASSUMED
    7  PENSION  BENEFIT  SCHEDULES,  INVESTMENT  PERFORMANCE  SUMMARY  BY ASSET
    8  CLASS, INVESTMENT PERFORMANCE DETAIL BY ASSET CLASS, EXPENSES ASSOCIATED
    9  WITH ANY GROUP ANNUITY CONTRACT, CHANGES IN  ACTUARIAL  ASSUMPTIONS,  IF
   10  ANY.
   11    (B)  NO  ALLOCATED  OR UNALLOCATED GROUP ANNUITY CONTRACT ISSUED BY AN
   12  INSURER TO AN EMPLOYER OR AN EMPLOYEE DEFINED PENSION  BENEFIT  PLAN  ON
   13  BEHALF  OF AN EMPLOYER, FOR THE PURPOSE OF PROVIDING RETIREMENT BENEFITS
   14  TO EMPLOYEES OR FORMER EMPLOYEES OF THE EMPLOYER, WHICH ANNUITY BENEFITS
   15  WILL NO LONGER BE PROTECTED UNDER THE FEDERAL EMPLOYEE RETIREMENT INCOME
   16  SECURITY ACT OF 1974 AND THE FEDERAL  PENSION  BENEFIT  GUARANTY  CORPO-
   17  RATION  MAY BE FURTHER TRANSFERRED OR ASSUMED BY ANOTHER INSURER WITHOUT
   18  CONFIRMATION BY THE SUPERINTENDENT THAT THE INSURER ASSUMING  THE  OBLI-
   19  GATIONS  OF SUCH ALLOCATED OR UNALLOCATED GROUP ANNUITY CONTRACT HAS THE
   20  FINANCIAL STRENGTH TO FULFILL ITS OBLIGATIONS UNDER SUCH CONTRACT.
   21    (C) THE  PROCEEDS  OF  ANY  ALLOCATED  OR  UNALLOCATED  GROUP  ANNUITY
   22  CONTRACT  ISSUED  BY  AN  INSURER  TO AN EMPLOYER OR AN EMPLOYEE DEFINED
   23  PENSION BENEFIT PLAN ON BEHALF  OF  AN  EMPLOYER,  FOR  THE  PURPOSE  OF
   24  PROVIDING RETIREMENT BENEFITS TO RETIREES OF THE EMPLOYER, WHICH ANNUITY
   25  BENEFITS  WILL  NO  LONGER BE PROTECTED UNDER ERISA AND THE FEDERAL PBGC
   26  SHALL BE EXEMPT FROM APPLICATION TO THE SATISFACTION OF MONEY  JUDGMENTS
   27  UNDER  SECTION  FIFTY-TWO  HUNDRED  FIVE  OF  THE CIVIL PRACTICE LAW AND
   28  RULES.
   29    (D) FOR PURPOSES OF THIS SECTION:  (1)  "EMPLOYER"  MEANS  ANY  PERSON
   30  ENGAGED  IN  BUSINESS  IN  THIS STATE WHO HAS TWO OR MORE EMPLOYEES, BUT
   31  DOES NOT INCLUDE THE STATE OR ANY POLITICAL SUBDIVISION THEREOF; AND
   32    (2) "EMPLOYEE PENSION BENEFIT PLAN" MEANS AN "EMPLOYEE PENSION BENEFIT
   33  PLAN", AS DEFINED IN 29 USC 1002(2)(A).
   34    S 2. Paragraph 2 of subdivision (l) of section 5205 of the civil prac-
   35  tice law and rules, as amended by chapter 24 of the  laws  of  2009,  is
   36  amended to read as follows:
   37    2.  For  purposes of this article, "statutorily exempt payments" means
   38  any personal property exempt from application to the satisfaction  of  a
   39  money  judgment  under  any provision of state or federal law. Such term
   40  shall include, but not be limited to, payments from any of the following
   41  sources: social security, including retirement, survivors' and disabili-
   42  ty benefits, supplemental security income  or  child  support  payments;
   43  veterans  administration  benefits;  public assistance; workers' compen-
   44  sation; unemployment insurance; public  or  private  pensions;  railroad
   45  retirement;  and  black  lung  benefits.   "STATUTORILY EXEMPT PAYMENTS"
   46  SHALL SPECIFICALLY INCLUDE  ANY  ANNUITY  PROCEEDS  WHOSE  BENEFITS  ARE
   47  TRANSFERRED  TO AN INSURANCE COMPANY OR ALTERNATIVE BENEFIT PROVIDER FOR
   48  THE PURPOSE OF PROVIDING RETIREMENT BENEFITS PURSUANT TO  SECTION  THREE
   49  THOUSAND  TWO  HUNDRED  NINETEEN-A  OF  THE  INSURANCE  LAW IN A PENSION
   50  DE-RISKING TRANSFER.
   51    S 3. This act shall take effect on the one hundred twentieth day after
   52  it shall have become a law and shall apply to all policies and contracts
   53  issued, renewed, modified, altered, or amended on or after such date.