PRINTER'S NO. 1551
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1283
Session of
2019
INTRODUCED BY MOUL, PICKETT, RYAN, MILLARD, DUNBAR AND
ZIMMERMAN, APRIL 25, 2019
REFERRED TO COMMITTEE ON INSURANCE, APRIL 25, 2019
AN ACT
Amending Titles 40 (Insurance) and 42 (Judiciary and Judicial
Procedure) of the Pennsylvania Consolidated Statutes,
providing for insurance contracts; and, in judgments and
other liens, further providing for exemption of particular
property.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of 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. Transfer or assumption of contract.
§ 7901. Definitions.
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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. Transfer or assumption of contract.
(a) Confirmation of financial strength necessary.--A
contract may not be transferred or assumed by another 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 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
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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) Nothing contained in paragraph (1)(x) shall limit
collective bargaining rights that a collective bargaining
unit may have.
* * *
Section 3. This act shall take effect in 60 days.
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