Bill Text: NJ S2411 | 2022-2023 | Regular Session | Amended

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Bill Title: Requires certain boards of education to select minimum of three financial institutions or pension management organizations to provide tax sheltered annuity plans.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2023-02-27 - Received in the Assembly, Referred to Assembly Education Committee [S2411 Detail]

Download: New_Jersey-2022-S2411-Amended.html

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[First Reprint]

SENATE, No. 2411

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED MAY 9, 2022

 

 

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

 

 

 

 

SYNOPSIS

     Requires certain boards of education to select minimum of three financial institutions or pension management organizations to provide tax sheltered annuity plans.

 

CURRENT VERSION OF TEXT

     As amended by the Senate on February 2, 2023.

  

An Act concerning retirement plan options for school district employees and supplementing chapter 66 of Title 18A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  A board of education of a school district with a student enrollment of at least 1,000 students that offers a 403(b) plan to school district employees pursuant to section 403(b) of the federal Internal Revenue Code (26 U.S.C. s. 403(b)) shall select a minimum of three financial institutions or pension management organizations to provide services to the 403(b) plan.  If fewer than three ¹[such]¹ financial institutions or pension management organizations are determined to be available, then the board of education shall select the number of available providers able to meet the requirements of this section.

     b.    A financial institution or pension management organization that provides services to a board of education under subsection a. of this section shall:

     (1)   enter into an agreement with the board of education that shall require the financial institution or pension management organization to provide in an electronic format all data necessary for the administration of the 403(b) plan as determined by the board of education; and

     (2)  provide all data required by the board of education to facilitate disclosure of all fees, charges, expenses, commissions, compensation, and payments to third parties related to investments offered under the 403(b) plan.

      ¹c.  A board of education shall not be responsible for:

     (1)  any investment loss incurred under the 403(b) plan;

     (2)  the failure of any investment to earn any specific or expected return; and

     (3)  the failure of any investment to earn as much as any other investment opportunity or to cost less than any other investment opportunity, regardless of whether the other opportunity was offered to participants in the 403(b) plan.¹

 

     2.    This act shall take effect immediately.