Connecticut 2019 Regular Session

Connecticut Senate Bill SB00901 Compare Versions

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Version 2 (New)

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7		-	General Assembly ~~Substitute~~ Bill No. 901
	5	+	General Assembly Raised Bill No. 901
8	6		January Session, 2019
	7	+	LCO No. 4420
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	9	+
	10	+	Referred to Committee on INSURANCE AND REAL ESTATE
	11	+
	12	+
	13	+	Introduced by:
	14	+	(INS)
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12	19		AN ACT CONCERNING RE TIREMENT PLANS OFFERED BY
13	20		POLITICAL SUBDIVISIONS OF THIS STATE.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17	24		Section 1. Section 7-464c of the general statutes is repealed and the 1
18	25		following is substituted in lieu thereof (Effective January 1, 2021): 2
19	26		(a) For the purposes of this section, "retirement plan" means any 3
20	27		retirement plan created in accordance with the provisions of Section 4
21	28		403(b) of the Internal Revenue Code of 1986, or any subsequent 5
22	29		corresponding internal revenue code of the United States, as amended 6
23	30		from time to time, that is not made available through the State 7
24	31		Comptroller pursuant to subsection (c) of section 5-264. 8
25	32		[(a)] (b) On or after January 1, [2019] 2021, any company that 9
26	33		administers a retirement plan offered by a political subdivision of the 10
27	34		state to the employees of such political subdivision shall disclose to 11
28	35		each participant in such retirement plan, the Insurance Commissioner, 12
29	36		in an electronic form and manner prescribed by the commissioner, and 13
30		-	the Secretary of the State, in an electronic form and manner prescribed 14
	37	+	the Secretary of the State, in an electronic form and manner prescribed 14 Raised Bill No. 901
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31	43		by the Secretary: 15
32	44		(1) The fee ratio and return, net of fees, for each investment under 16
33	45		the retirement plan; [, and] 17
34		-	(2) [the] The fees paid to any person who, for compensation, 18 Substitute Bill No. 901
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	46	+	(2) [the] The fees paid to any person who, for compensation, 18
41	47		engages in the business of providing investment advice to participants 19
42	48		in the retirement plan either directly or through publications or 20
43	49		writings; [. Such disclosures shall be made upon initial enrollment in 21
44	50		the retirement plan and at least annually thereafter. For the purposes 22
45	51		of this section, "retirement plan" means any retirement plan created in 23
46	52		accordance with the provisions of Section 403(b) of the Internal 24
47	53		Revenue Code of 1986, or any subsequent corresponding internal 25
48	54		revenue code of the United States, as amended from time to time, that 26
49	55		is not made available through the State Comptroller pursuant to 27
50	56		subsection (c) of section 5-264 of the general statutes. 28
51	57		(b) Any such company shall be deemed to comply with the 29
52	58		requirements of subsection (a) of this section if such company adheres 30
53	59		to the disclosure requirements for plans governed by the Employee 31
54	60		Retirement Income Security Act of 1974 set forth in Section 2550.404a-5 32
55	61		of the Code of Federal Regulations, as in effect on July 1, 2017, or as 33
56	62		amended from time to time, provided any amended disclosure 34
57	63		requirements are substantially similar to those in effect on July 1, 35
58	64		2017.] and 36
59		-	(3) ~~Any~~ other information required ~~to be disclosed~~ pursuant to 29 37
60		-	~~CFR 2550.404a-5~~, as amended from time to time, if such ~~retirement~~ 38
61		-	plan is a participant-directed individual account plan, as ~~such term is~~ 39
62		-	used in ~~29 CFR 2550.404a-5~~. 40
	65	+	(3) All other information required pursuant to Section 2550.404a-5 of 37
	66	+	the Code of Federal Regulations, as amended from time to time, if such 38
	67	+	retirement plan is a participant-directed individual account plan, as 39
	68	+	such term is used in said Section. 40
63	69		(c) Each company that is subject to the disclosure requirements 41
64	70		established in subsection (b) of this section shall make the disclosures 42
65	71		required by said subsection upon initial enrollment in the retirement 43
66	72		plan and at least annually thereafter. 44
67		-	(d) Not later than March 1, 2022, and annually thereafter, the 45
68		-	Secretary of the State shall post on the Secretary's Internet web site 46
	73	+	(d) Not later than March 1, 2022, and annually thereafter, the 45 Raised Bill No. 901
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	79	+	Secretary of the State shall post, on the Secretary's Internet web site, 46
69	80		each disclosure that the Secretary received pursuant to subsection (b) 47
70	81		of this section on or before the January first immediately preceding for 48
71		-	the calendar year immediately preceding. 49 Substitute Bill No. 901
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	82	+	the calendar year immediately preceding. 49
78	83		(e) Not later than March 1, 2022, and annually thereafter, the 50
79	84		Insurance Commissioner shall certify to the State Comptroller, in a 51
80		-	form and manner prescribed by the commissioner, ~~whether~~ each 52
81		-	~~company~~ that is subject to the requirements established in subsections 53
82		-	~~(b) and (c)~~ of this section was in compliance with such requirements 54
83		-	~~during the~~ calendar year immediately preceding. 55
	85	+	form and manner prescribed by the commissioner, that each company 52
	86	+	that is subject to the requirements established in subsections (b) and (c) 53
	87	+	of this section was in compliance with such requirements during the 54
	88	+	calendar year immediately preceding. 55
84	89		This act shall take effect as follows and shall amend the following
85	90		sections:
86	91
87	92		Section 1 January 1, 2021 7-464c
88	93
89		-	Statement of Legislative Commissioners:
90		-	In Subsec. (b)(3), "Any" was substituted for "All" for clarity, "to be
91		-	disclosed" was added for clarity, and references to "Section 2550.404a-5
92		-	of the Code of Federal Regulations" and "said Section" were changed to
93		-	"29 CFR 2550.404a-5" for consistency; and in Subsec. (e), "whether" was
94		-	substituted for "that" for accuracy.
95		-
96		-	INS Joint Favorable Subst. -LCO
	94	+	Statement of Purpose:
	95	+	To: (1) Modify the disclosure requirements applicable to retirement
	96	+	plans offered by political subdivisions of this state; (2) require the
	97	+	companies that administer such plans to disclose information
	98	+	concerning such plans to the Insurance Commissioner and the
	99	+	Secretary of the State; (3) require the Secretary of the State to make the
	100	+	disclosures that the Secretary receives from such companies available
	101	+	on the Secretary's Internet web site; and (4) require the Insurance
	102	+	Commissioner to certify to the State Comptroller that such companies
	103	+	are in compliance with such requirements.
	104	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	105	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	106	+	not underlined.]
97	107