PRIOR PRINTER'S NOS. 1551, 1804
PRINTER'S NO. 1854
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1283
Session of
2019
INTRODUCED BY MOUL, PICKETT, RYAN, MILLARD, DUNBAR, ZIMMERMAN
AND STEPHENS, APRIL 25, 2019
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 15, 2019
AN ACT
Amending Titles 40 (Insurance) and TITLE 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. Issuance, 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. 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
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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
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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.
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