MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Insurance
By: Representative Bennett
AN ACT TO REGULATE THE TRANSFER OR ASSUMPTION OF RETIREMENT ANNUITY CONTRACTS; TO LIMIT CERTAIN CREDITORS' CLAIMS ON ANY INTEREST IN OR AMOUNTS PAYABLE TO A PARTICIPANT OR BENEFICIARY FROM ANY ALLOCATED OR UNALLOCATED GROUP ANNUITY CONTRACT ISSUED OR ISSUED FOR DELIVERY IN THE STATE 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; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section the following terms shall have the following meanings unless the context clearly indicates otherwise:
(a) "Employer" means a person doing business in or operating within the State of Mississippi who employs a resident of the state to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. "Employer" does not include the state or any of its agencies, institutions, or political subdivisions or any public body.
(b) "Pension plan" has the same meaning ascribed to that term in Section 3(2) of ERISA.
(c) "Retirement annuity contract" means an allocated or unallocated group annuity contract that is issued or issued for delivery by an insurer to an employer or a pension plan, pension plan sponsor, or affiliate of such employer, pension plan, or pension plan sponsor, for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan and that (i) is issued or issued for delivery in the state or (ii) affects retired employees residing in the state who are certificate holders or beneficiaries of a contract if the Commissioner of Insurance has jurisdiction over the insurer issuing the contract.
(2) On or after July 1, 2019, no retirement annuity contract shall be transferred to or assumed by another insurer unless:
(a) The transfer is made to an assuming insurer that has a rating equivalent of A or better from two (2) or more nationally recognized rating agencies; or
(b) The transfer to the assuming insurer is approved by the Commissioner of Insurance.
(3) If the Commissioner of Insurance determines that an insurer has violated this section or any order or regulation adopted hereunder, the Commissioner of Insurance, after notice and opportunity to be heard, may impose a penalty in accordance with his authority.
SECTION 2. (1) As used in this section the following terms shall have the following meanings unless the context clearly indicates otherwise:
(a) "Employer" means a person doing business in or operating within the State of Mississippi who employs another to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. "Employer" does not include the state or any of its agencies, institutions, or political subdivisions or any public body.
(b) "ERISA" means the federal Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829), as amended.
(c) "Pension plan" has the same meaning ascribed to that term in Section 3(2) of ERISA.
(2) Any interest in or amounts payable to a participant or beneficiary from any allocated or unallocated group annuity contract issued or issued for delivery in the state 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 were protected under ERISA or the Federal Pension Benefit Guaranty Corporation prior to the effective date of the group annuity contract and will not be protected under ERISA or the Federal Pension Benefit Guaranty Corporation on and after the effective date of the group annuity contract, shall be exempt from the claims of all creditors of such participant or beneficiary.
(3) The exemption from the claims of creditors provided under subsection (2) of this section shall not apply to claims arising under a qualified domestic relations order.
(4) The exemption from the claims of creditors provided under subsection (2) of this section shall not apply to any claim by a creditor with respect to an annuity contract that was taken out, made, or assigned in writing for the benefit of the creditor.
(5) Notwithstanding the provisions of subsection (2) of this section and subject to the applicable statute of limitations, the amount of any premiums or other amounts paid for the related annuity contract that were paid with the intent to defraud creditors, with the interest thereon, shall inure to the benefit of the creditors from the proceeds of the policy, contract, or deposit.
(6) The exemption provided by this section shall not apply to any protected annuity contract issued or effected during the six (6) months preceding the date that the person claiming the exemption (a) files a voluntary petition in bankruptcy; (b) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceeding; or (c) files a petition or answer seeking for himself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation.
SECTION 3. Since the purpose of Section 2 of this act is to confer additional rights, privileges, and benefits upon beneficiaries and assignees of policies, no beneficiary or assignee shall by reason of these sections be divested or deprived of or prohibited from exercising or enjoying any right, privilege, or benefit that he would have or could exercise or enjoy had Section 2 of this act not been enacted.
SECTION 4. This act shall take effect and be in force from and after July 1, 2019.