Connecticut 2019 2019 Regular Session

Connecticut Senate Bill SB00901 Comm Sub / Bill

Filed 04/02/2019

                     
 
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General Assembly  Substitute Bill No. 901  
January Session, 2019  
 
 
 
AN ACT CONCERNING RE TIREMENT PLANS OFFER ED 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 Section 7-464c of the general statutes is repealed and the 1 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 
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  Substitute Bill No. 901 
 
 
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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) Any other information required to be disclosed pursuant to 29 37 
CFR 2550.404a-5, as amended from time to time, if such retirement 38 
plan is a participant-directed individual account plan, as such term is 39 
used in 29 CFR 2550.404a-5. 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 
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  Substitute Bill No. 901 
 
 
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(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, whether each 52 
company that is subject to the requirements established in subsections 53 
(b) and (c) of this section was in compliance with such requirements 54 
during the 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 Legislative Commissioners:   
In Subsec. (b)(3), "Any" was substituted for "All" for clarity, "to be 
disclosed" was added for clarity, and references to "Section 2550.404a-5 
of the Code of Federal Regulations" and "said Section" were changed to 
"29 CFR 2550.404a-5" for consistency; and in Subsec. (e), "whether" was 
substituted for "that" for accuracy. 
 
INS Joint Favorable Subst. -LCO