SB 901 — AN ACT CONCERNING RETIREMENT PLANS OFFERED BY POLITICAL SUBDIVISIONS OF THIS STATE.

General Assembly RaisedSubstitute Bill No.

901 January Session, 2019 LCOAN No.ACT CONCERNING RETIREMENT PLANS OFFERED BY POLITICAL SUBDIVISIONS OF THIS STATE.

4420 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by:

(INS) AN ACT CONCERNING RETIREMENT PLANS OFFERED BY POLITICAL SUBDIVISIONS OF THIS STATE.

[(a)] (b) On or after January 1, [2019] 2021, any company that administers a retirement plan offered by a political subdivision of the state to the employees of such political subdivision shall disclose to each participant in such retirement plan, the Insurance Commissioner, in an electronic form and manner prescribed by the commissioner, and the Secretary of the State, in an electronic form and manner prescribed LCOby No.the Secretary:

4420 1 of 3 Raised Bill No.901 by the Secretary:

[, and] (2) [the] The fees paid to any person who, for compensation, engagesLCO in\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00901-R01 the business of providing3 investmentSB.docx adviceSubstitute toBill participantsNo. in the retirement plan either directly or through publications or writings;

901 engages in the business of providing investment advice to participants in the retirement plan either directly or through publications or writings;

(b) Any such company shall be deemed to comply with the requirements of subsection (a) of this section if such company adheres to the disclosure requirements for plans governed by the Employee Retirement Income Security Act of 1974 set forth in Section 2550.404a-5 of the Code of Federal Regulations, as in effect on July 1, 2017, or as amended from time to time, provided any amended disclosure requirements are substantially similar to those in effect on July 1, 2017.] and (3) AllAny other information required pursuant to Sectionbe 2550.404a-5disclosed ofpursuant theto Code29 ofCFR Federal2550.404a-5, Regulations, as amended from time to time, if such retirement plan is a participant-directed individual account plan, as such term is used in said29 Section.CFR 2550.404a-5.

(d) Not later than March 1, 2022, and annually thereafter, the LCOSecretary No.of the State shall post on the Secretary's Internet web site each disclosure that the Secretary received pursuant to subsection (b) of this section on or before the January first immediately preceding for the calendar year immediately preceding.

4420LCO 2{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00902 of 3 RaisedR01-SB.docx } Substitute Bill No.

901 Secretary(e) ofNot later than March 1, 2022, and annually thereafter, the StateInsurance Commissioner shall post,certify onto the Secretary'sState InternetComptroller, webin site,a eachform disclosureand thatmanner prescribed by the Secretarycommissioner, receivedwhether pursuanteach company that is subject to subsectionthe requirements established in subsections (b) and (c) of this section onwas orin beforecompliance thewith Januarysuch firstrequirements immediatelyduring preceding for the calendar year immediately preceding.

(e) Not later than March 1, 2022, and annually thereafter, the Insurance Commissioner shall certify to the State Comptroller, in a form and manner prescribed by the commissioner, that each company that is subject to the requirements established in subsections (b) and (c) of this section was in compliance with such requirements during the calendar year immediately preceding.

Section 1 January 1, 2021 7-464c Statement of Purpose:Legislative Commissioners:

To:In Subsec.

(1)(b)(3), Modify"Any" thewas disclosuresubstituted requirementsfor applicable"All" tofor retirementclarity, plans"to offeredbe bydisclosed" politicalwas subdivisionsadded for clarity, and references to "Section 2550.404a-5 of thisthe state;Code of Federal Regulations" and "said Section" were changed to "29 CFR 2550.404a-5" for consistency;

(2) require the companies that administer such plans to disclose information concerning such plans to the Insurance Commissioner and thein SecretarySubsec. of the State;

(3)(e), require"whether" thewas Secretarysubstituted offor the"that" Statefor toaccuracy. make the disclosures that the Secretary receives from such companies available on the Secretary's Internet web site;

andINS (4)Joint requireFavorable theSubst. Insurance Commissioner to certify to the State Comptroller that such companies are in compliance with such requirements.

[Proposed-LCO deletionsLCO are{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00901- enclosed3 inof brackets.3 R01-SB.docx }

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.] LCO No.

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