Unclaimed personal property: employee benefit plan distributions.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Enrolled
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill modifies California law regarding unclaimed employee benefit plan distributions. It adds a new condition to an existing exception that allows for the avoidance of escheatment (transfer to the state). Specifically, a distribution must have been subject to a forfeiture that hasn’t been reversed by the plan in order to avoid escheatment. The bill also clarifies the application of federal law, particularly the Employee Retirement Income Security Act of 1974, and allows the Controller to enter into agreements to ensure compliance with federal regulations.
Key provisions
- Requires a distribution to have been subject to a previously reversed forfeiture to avoid escheatment.
- Clarifies the definition of ‘fiduciary’ and ‘administrator’ within the context of employee benefit plans.
- Addresses residuals distributions, providing a mechanism for relief from forfeiture.
- States that federal law, specifically ERISA, will govern if there are conflicts.
- Authorizes the Controller to enter into multistate agreements to ensure compliance with federal regulations.
Who is affected
- Employees
- Employer Benefit Plan Administrators
- The State of California (as recipient of unclaimed property)
- Retirement Systems and Plans
- The Controller's Office
Notable changes
- Adds a new condition to the existing escheatment exception for employee benefit plan distributions.
Bill text
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Sponsors
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1 on record
Primary sponsor
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