PRIORH1283B1804A01376 PRINTER'SSFR:EJH NOS.05/14/19 #90 A01376 AMENDMENTS TO HOUSE BILL NO.

1551,1283 1804Sponsor: PRINTER'S NO.

1854REPRESENTATIVE THEHARKINS GENERALPrinter's ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

12831804 2019Amend INTRODUCEDBill, BYpage MOUL,2, PICKETT,line RYAN,10, MILLARD,by DUNBAR,inserting ZIMMERMANafter AND"benefits" STEPHENS,or APRILdeferred 25,wages 2019Amend ASBill, AMENDEDpage ON2, SECONDline CONSIDERATION,22, HOUSEby OFinserting REPRESENTATIVES,after MAY"contract." 15,In 2019determining ANthe ACTfinancial Amendingstrength Titlesof 40an (Insurance)insurer, andthe TITLEcommissioner 42may (Judiciaryconsider andwhether <--a Judicialprofessional Procedure)or oftransactional fee associated with a contract is materially detrimental financially to the Pennsylvaniaemployees Consolidatedor Statutes,retirees providingwhose forretirement insurancebenefits contracts;are being funded by the contract.

and,The incommissioner <--is judgmentsauthorized andto otherlimit liens,or furtherdeny providinga forprofessional exemptionor oftransactional particularfee property.associated with a contract prior to making the determination as required by subsection (b).

TheAmend GeneralBill, Assemblypage of2, theby Commonwealthinserting between lines 28 and 29 (c) Deemed wages and deemed employer.--Prospective periodic payments of Pennsylvaniaannuity herebybenefits enactsby asan follows:insurer pursuant to a contract shall be deemed wages, and the insurer shall be deemed the employer.

SectionFor 1.purposes of this subsection, the terms "employer" and "wages" shall be as defined under section 2.1 of the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law.

Title2019/90SFR/HB1283A01376 40- of1 the- Pennsylvania Consolidated <-- Statutes is amended by adding a part to read:

PART V INSURANCE CONTRACTS Chapter 79.

Group Annuity Contracts CHAPTER 79 GROUP ANNUITY CONTRACTS Sec.

7901.

Definitions.

7902.

Issuance, transfer or assumption of contract.

§ 7901.

Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Commissioner." The Insurance Commissioner of the Commonwealth.

"Contract." An allocated or unallocated group annuity contract:

(1) That is issued by an insurer to an employer or an employee defined pension benefit plan on behalf of an employer, for the purpose of providing retirement benefits to employees or former employees of the employer.

(2) Whose annuity benefits will no longer be protected under the Employee Retirement Income Security Act of 1974 (Public Law 93-406, 88 Stat.

829) or the Federal Pension Benefit Guaranty Corporation.

§ 7902.

Issuance, transfer or assumption of contract.

(a) Confirmation of financial strength necessary.--A contract may not be issued, transferred or assumed by an insurer without confirmation by the commissioner that the insurer assuming the obligations of the contract has the financial strength to fulfill its obligations under the contract.

(b) Determination by commissioner.--Within 60 days after notification from the insurer of the proposed issuance, transfer or assumption under subsection (a), the commissioner shall review the financial strength of the insurer who is proposed to assume the obligations of the contract and determine whether the insurer can fulfill its obligations under the contract.

Section 2.

Section 8124(b)(1) introductory paragraph of Title 42 is amended, the paragraph is amended by adding a subparagraph and the subsection is amended by adding a paragraph 20190HB1283PN1854 - 2 - to read:

SECTION 1.

SECTION 8124(B)(1) OF TITLE 42 OF THE <-- PENNSYLVANIA CONSOLIDATED STATUTES IS AMENDED BY ADDING A SUBPARAGRAPH TO READ:

§ 8124.

Exemption of particular property.

* * * (b) Retirement funds and accounts.-- (1) Except as provided in paragraph (2) or (3), the <-- following money or other property of the judgment debtor shall be exempt from attachment or execution on a judgment:

* * * (x) Any allocated or unallocated group annuity contract issued to an employer or a pension plan for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan, which retirement benefits:

(A) Were protected under the Employee Retirement Income Security Act of 1974 (Public Law 93-406, 88 Stat.

829) or the Federal Pension Benefit Guaranty Corporation prior to the effective date of the group annuity contract.

(B) Will not be protected under the Employee Retirement Income Security Act of 1974 or the Federal Pension Benefit Guaranty Corporation on and after the effective date of the group annuity contract.

* * * (3) Notwithstanding paragraph (1)(x), the employees or <-- retirees of an employer whose retirement benefits were to be provided for by a group annuity contract may attach or execute a judgment against the group annuity contract for 20190HB1283PN1854 - 3 - benefits they were entitled to receive under the defined benefit plan for which the group annuity contract was created.

* * * Section 3 2.

This act shall take effect in 60 days.