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Bill > H476


MA H476

MA H476
To amend the insurance law, in relation to providing protection to certain retirees from pension de-risking transactions


summary

Introduced
01/23/2017
In Committee
01/23/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

190th General Court

Bill Summary

For legislation to provide protections to retirees whose pension benefits are transferred from a pension plan protected under the Employee Retirement Income Security Act to a substitute pension benefit provider. Financial Services.

AI Summary

This bill aims to provide protections to retirees whose pension benefits are transferred from an ERISA-protected pension plan to a substitute pension benefit provider, such as an insurance company, in a process known as "pension de-risking" or "pension stripping". The key provisions of the bill include: requiring regulatory approval for all such transactions, mandating third-party guarantees or reinsurance to mitigate the loss of PBGC coverage, imposing extensive disclosure requirements, providing retirees with an opt-out option, and ensuring that retiree assets are held in trust and protected from creditor claims. The bill also empowers the state insurance commissioner to promulgate regulations and enforce compliance with these new rules.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Accompanied a study order, see H4778 (on 07/18/2018)

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