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02/24/2020 04:22 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=29215
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: April 12, 2019 02:00 PM
From: Representative Dan Moul
To: All House members
Subject: Pension De-Risking-Previously HB 324 of 17'-18' Legislative Session
 
In the near future, I plan to introduce legislation that would provide protections for retirement plan benefits due to pension de-risking.

Pension de-risking occurs when an employer transfers its pension obligations to an insurance company. Employers can enter into group annuity contacts to fund the employee retirement benefit to decrease the risk and cost associated with managing a retirement plan. Through pension de-risking, an employer may reduce their risk, but the retirees’ risks can increase.

Employer paid pensions are governed under federal ERISA (Employment Retirement Income Security Act). When pension obligations are transferred and paid through insurance company annuities, retirees may lose protections contained in ERISA that are not currently contained in state regulated insurance payments. Once an employer transfers retirement plan benefits to an insurance company, creditors may have the ability to garnish the retirees’ annuity payments.

This legislation was previously HB 324 (Kampf) from last session. HB 324 successfully passed the House but failed to reach final consideration in the Senate.

I hope you will join me in cosponsoring this important piece of legislation.



Introduced as HB1283