An Act to amend the insurance law, in relation to providing protection to certain retirees from pension de-risking transactions
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to protect retirees whose pension plans undergo ‘de-risking’ transactions by the plan sponsors. De-risking involves reducing investment risk, often by shifting assets to less volatile investments, which can decrease the expected payout for retirees. The bill seeks to ensure that retirees maintain their expected pension benefits even if their plan is de-risked. It does this by requiring certain disclosures and potentially limiting the ability of plan sponsors to reduce benefits.
Key provisions
- Requires pension plans to disclose their de-risking plans to retirees.
- Establishes standards for how de-risking transactions will be handled.
- Potentially limits the ability of plan sponsors to reduce retiree benefits during de-risking.
- Focuses on protecting retirees from significant reductions in their pension income.
- Addresses the impact of financial risk management strategies on retiree pensions.
Who is affected
- Retirees
- Pension Plan Sponsors
- Financial Institutions
- Massachusetts Residents
- Pension Plan Participants
Notable changes
- Introduces regulations regarding pension de-risking transactions.
- Requires increased transparency for retirees regarding plan changes.
- May limit the ability of pension plans to unilaterally reduce benefits.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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