S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9013

                          I N  A S S E M B L Y

                              March 6, 2014
                               ___________

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

  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:
  S  3219-A.  PENSION  DE-RISKING  TRANSACTIONS WITH AN ANNUITY. (A) ANY
ANNUITY ISSUED BY AN INSURANCE COMPANY LICENSED TO DO BUSINESS  IN  THIS
STATE  WHICH  SELLS  AN  ANNUITY INTENDED TO PROVIDE PENSION BENEFITS TO
RETIREES OF ANY COMPANY, CORPORATION, LIMITED LIABILITY COMPANY OR ASSO-
CIATION SHALL INCLUDE THE FOLLOWING PROVISIONS, INCLUDING BUT NOT LIMIT-
ED TO:
  (1) MANDATORY DISCLOSURES, REGULATORY APPROVAL AND AN  OPPORTUNITY  TO
CHALLENGE OR OPT OUT OF ANY PENSION DE-RISKING TRANSACTION THAT ATTEMPTS
TO  TRANSFER  RETIREE BENEFITS FROM A FEDERAL EMPLOYEE RETIREMENT INCOME
SECURITY ACT ("ERISA") PROTECTED PLAN TO A SUBSTITUTE  BENEFIT  PROVIDER
NOT COVERED UNDER ERISA;
  (2) SUPPLEMENTAL PROTECTIONS IN THE FORM OF A THIRD PARTY GUARANTEE OR
REINSURANCE CONTRACT SO AS TO EQUAL THE SCOPE OF COVERAGE OFFERED BY THE
PENSION  BENEFIT GUARANTY CORPORATION ("PBGC") AFTER AN ANNUITY PROVIDER
INSOLVENCY AND SUBSEQUENT DETERMINATION OF  ANY  SHORTFALLS  THAT  MIGHT
ARISE  AFTER  NEW  YORK  LIFE  AND HEALTH INSURANCE GUARANTY ASSOCIATION
("NYLHIGA") CONTRIBUTIONS ARE DETERMINED SO  SELECT  RETIREES  WITHIN  A
PLAN ARE NOT UNFAIRLY DISCRIMINATED AGAINST;
  (3) THE PROVISION OF ADDITIONAL PROTECTIONS INCLUDING, BUT NOT LIMITED
TO,  MANDATORY DISCLOSURES BY THE TRANSFERRING ENTITY AND THE SUBSTITUTE
PENSION BENEFIT PROVIDER, UNIFORM FIDUCIARY STANDARDS  AND  DISCLOSURES,
UNIFORM  AND  EQUIVALENT  PROTECTION FROM CREDITORS AND BANKRUPTCY TRUS-
TEES;
  (4) ALLOWING RETIREES RECEIVING PENSION BENEFITS THE OPTION TO REQUEST
A LUMP SUM CASH OUT OPTION  SUBJECT  TO  CERTAIN  MANDATORY  DISCLOSURES
REGARDING  THE  TAX  CONSEQUENCES  AND DISSIPATION RISKS ASSOCIATED WITH

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

                                                           LBD11644-02-3

A. 9013                             2

LUMP SUM DISTRIBUTIONS AND INDEPENDENT LEGAL OR FINANCIAL ADVISOR  OVER-
SIGHT;
  (5)  THAT  ALL  DE-RISKING  TRANSACTIONS  BE VETTED AND APPROVED BY AN
INDEPENDENT THIRD PARTY CREATED BY AND WITH THE APPROVAL OF  THE  SUPER-
INTENDENT; AND
  (6) THAT ALL SUBSEQUENT TRANSFERS OF GROUP ANNUITY CONTRACTS BE VETTED
AND  APPROVED  BY  AN  INDEPENDENT  THIRD  PARTY CREATED BY AND WITH THE
APPROVAL OF THE SUPERINTENDENT.
  (B) THE SUPERINTENDENT SHALL PROMULGATE ANY NECESSARY RULES  OR  REGU-
LATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION.
  S 2. 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.