New York Assembly Bill A01761

New York 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25
• Refer: 1/7/26

Caption

Provides protection to certain retirees from de-risking pension transactions.

Summary

Bill A01761 aims to amend the insurance law to provide protections for retirees involved in pension de-risking transactions. It establishes new regulations for insurers issuing group annuity contracts on behalf of employers, ensuring that retirees are informed about the loss of federal protections under ERISA and the PBGC. The bill mandates that insurers disclose critical information regarding the financial status of the annuity contracts and the protections available to retirees in case of insurer insolvency.

Impact

The bill modifies existing insurance and civil practice laws in New York, specifically addressing how pension benefits are managed when transferred to insurance companies. It ensures that annuity payments are exempt from creditor claims and outlines the responsibilities of insurers to provide transparent information to retirees. This legislation could significantly affect how pension plans are structured and managed, particularly in terms of the protections afforded to retirees.

Sentiment

The sentiment surrounding Bill A01761 appears to be cautiously supportive, with discussions emphasizing the need for greater transparency and protection for retirees. However, there may be concerns regarding the implications of transferring pension benefits to insurance companies and the adequacy of the protections provided under the new regulations.

Contention

Notable points of contention include the adequacy of the information that insurers must provide to retirees and the potential risks associated with transferring pension benefits away from ERISA protections. Some stakeholders may argue that the bill does not go far enough in safeguarding retirees' interests, while others may express concerns about the regulatory burden on insurers.