New York A 1761: Provides protection to certain retirees from pension de-risking transactions

Bill Text

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A01761 Summary:

BILL NOA01761 

&nbsp

SAME ASNo Same As

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SPONSORPheffer Amato

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COSPNSR

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MLTSPNSR

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Add §3219-a, Ins L; amd §5205, CPLR

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

Go to top A01761 Actions:

BILL NOA01761 

&nbsp

01/14/2025referred to insurance

01/07/2026referred to insurance

Go to topA01761 Committee&nbspVotes:

Go to topA01761 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA01761 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1761

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 14, 2025
 ___________

 Introduced by M. of A. PHEFFER AMATO -- 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:

 1 Section 1. The insurance law is amended by adding a new section 3219-a
 2 to read as follows:
 3 § 3219-a. Pension de-risking transactions with an annuity. (a) For
 4 purposes of this section: (1) "Employer" means any person engaged in
 5 business in this state who has two or more employees, but does not
 6 include the state or any political subdivision thereof;
 7 (2) "Employee pension benefit plan" means an "employee pension benefit
 8 plan", as defined in 29 USC 1002(2)(A); and
 9 (3) "Pension de-risking transaction" means any transaction that
 10 involves the transfer of pension benefits (not including health care
 11 benefits) from a pension plan protected under the Employee Retirement
 12 Income Security Act ("ERISA") to a substitute pension benefit provider
 13 such as an insurance company licensed and regulated under state law.
 14 (b) Any insurer issuing an allocated or unallocated group annuity
 15 contract to an employer or an employee defined pension benefit plan on
 16 behalf of an employer, for the purpose of providing retirement benefits
 17 to employees or former employees ("retirees") of the employer, which
 18 annuity benefits will no longer be protected under the federal Employee
 19 Retirement Income Security Act of 1974 ("ERISA") and the federal Pension
 20 Benefit Guaranty Corporation ("PBGC") shall provide the following infor-
 21 mation to the retirees pursuant to regulations adopted by the super-
 22 intendent:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04211-01-5

 A. 1761 2

 1 (1) a clear statement that payments to annuitants under an annuity
 2 contract issued pursuant to this section are exempt from the claims of
 3 creditors;
 4 (2) a statement that the retirees will no longer have protection under
 5 ERISA and the PBGC;
 6 (3) the identity and contact information for the New York Life and
 7 Health Insurance Guaranty Association, or any substitute or replacement
 8 guaranty association that provides coverage to annuitants residing in
 9 New York in the event of the insurer's financial impairment or insolven-
 10 cy, as set forth on a publicly available website such as the website
 11 maintained by the Life Insurance Company Guaranty Corporation of New
 12 York (www.nylifega.org); and
 13 (4) mandatory annual disclosures to all retirees whose benefits are
 14 transferred to an insurance company or alternative benefit provider for
 15 the purpose of providing retirement benefits, of the following: funding
 16 levels of all assets relative to expected liabilities under the assumed
 17 pension benefit schedules, investment performance summary by asset
 18 class, investment performance detail by asset class, expenses associated
 19 with any group annuity contract, and changes in actuarial assumptions,
 20 if any.
 21 (c) No allocated or unallocated group annuity contract issued by an
 22 insurer to an employer or an employee defined pension benefit plan on
 23 behalf of an employer, for the purpose of providing retirement benefits
 24 to employees or former employees of the employer, which annuity benefits
 25 will no longer be protected under the federal Emp