Bill > H1184

This bill proposes comprehensive protections for retirees whose pension benefits are transferred from ERISA-protected plans to insurance companies through "pension de-risking" transactions. The legislation requires regulatory approval for such transfers and mandates that these transactions include supplemental protections like third-party guarantees that mirror the coverage provided by the Pension Benefit Guaranty Corporation (PBGC). Insurance companies must provide detailed mandatory disclosures to retirees about the transfer, including information about lost federal protections, potential changes in tax treatment, and contract details. Retirees are granted an opt-out option with at least 90 days' notice and the right to receive a lump-sum payout based on the net present value of their future benefits. The bill also requires that retiree assets be held in trust, provides creditor protections for annuity payments, and prohibits subsequent transfers of group annuity contracts without prior commissioner approval. Additionally, the legislation empowers the Commissioner to create regulations, implement fines for non-compliance, and ensure that retirees receive comprehensive notice about their rights under this new law. The act aims to provide state-level protections equivalent to those previously guaranteed under ERISA when pension plans are transferred to alternative benefit providers.

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https://malegislature.gov/Bills/194/H1184