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General Assembly Raised Bill No. 901
January Session, 2019
LCO No. 4420
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING RE TIREMENT PLANS OFFERED BY
POLITICAL SUBDIVISIONS OF THIS STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 7-464c of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective January 1, 2021): 2
(a) For the purposes of this section, "retirement plan" means any 3
retirement plan created in accordance with the provisions of Section 4
403(b) of the Internal Revenue Code of 1986, or any subsequent 5
corresponding internal revenue code of the United States, as amended 6
from time to time, that is not made available through the State 7
Comptroller pursuant to subsection (c) of section 5-264. 8
[(a)] (b) On or after January 1, [2019] 2021, any company that 9
administers a retirement plan offered by a political subdivision of the 10
state to the employees of such political subdivision shall disclose to 11
each participant in such retirement plan, the Insurance Commissioner, 12
in an electronic form and manner prescribed by the commissioner, and 13
the Secretary of the State, in an electronic form and manner prescribed 14 Raised Bill No. 901
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by the Secretary: 15
(1) The fee ratio and return, net of fees, for each investment under 16
the retirement plan; [, and] 17
(2) [the] The fees paid to any person who, for compensation, 18
engages in the business of providing investment advice to participants 19
in the retirement plan either directly or through publications or 20
writings; [. Such disclosures shall be made upon initial enrollment in 21
the retirement plan and at least annually thereafter. For the purposes 22
of this section, "retirement plan" means any retirement plan created in 23
accordance with the provisions of Section 403(b) of the Internal 24
Revenue Code of 1986, or any subsequent corresponding internal 25
revenue code of the United States, as amended from time to time, that 26
is not made available through the State Comptroller pursuant to 27
subsection (c) of section 5-264 of the general statutes. 28
(b) Any such company shall be deemed to comply with the 29
requirements of subsection (a) of this section if such company adheres 30
to the disclosure requirements for plans governed by the Employee 31
Retirement Income Security Act of 1974 set forth in Section 2550.404a-5 32
of the Code of Federal Regulations, as in effect on July 1, 2017, or as 33
amended from time to time, provided any amended disclosure 34
requirements are substantially similar to those in effect on July 1, 35
2017.] and 36
(3) All other information required pursuant to Section 2550.404a-5 of 37
the Code of Federal Regulations, as amended from time to time, if such 38
retirement plan is a participant-directed individual account plan, as 39
such term is used in said Section. 40
(c) Each company that is subject to the disclosure requirements 41
established in subsection (b) of this section shall make the disclosures 42
required by said subsection upon initial enrollment in the retirement 43
plan and at least annually thereafter. 44
(d) Not later than March 1, 2022, and annually thereafter, the 45 Raised Bill No. 901
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Secretary of the State shall post, on the Secretary's Internet web site, 46
each disclosure that the Secretary received pursuant to subsection (b) 47
of this section on or before the January first immediately preceding for 48
the calendar year immediately preceding. 49
(e) Not later than March 1, 2022, and annually thereafter, the 50
Insurance Commissioner shall certify to the State Comptroller, in a 51
form and manner prescribed by the commissioner, that each company 52
that is subject to the requirements established in subsections (b) and (c) 53
of this section was in compliance with such requirements during the 54
calendar year immediately preceding. 55
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2021 7-464c
Statement of Purpose:
To: (1) Modify the disclosure requirements applicable to retirement
plans offered by political subdivisions of this state; (2) require the
companies that administer such plans to disclose information
concerning such plans to the Insurance Commissioner and the
Secretary of the State; (3) require the Secretary of the State to make the
disclosures that the Secretary receives from such companies available
on the Secretary's Internet web site; and (4) require the Insurance
Commissioner to certify to the State Comptroller that such companies
are in compliance with such requirements.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]