Bill Text: WV HB2666 | 2018 | Regular Session | Introduced
Bill Title: Providing for security of private, employer-sponsored insurance and/or retirement plans
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2018-01-10 - To House Banking and Insurance [HB2666 Detail]
Download: West_Virginia-2018-HB2666-Introduced.html
WEST virginia Legislature
2017 regular session
By
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to the Committee on Banking and Insurance then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new section, designated
§21-5-14b, relating to providing for security of private, employer-sponsored
insurance and/or retirement plans.
Be it enacted by the Legislature
of West Virginia:
That the Code of West
Virginia, 1931, as amended, be amended by adding thereto a new section,
designated §21-5-14b, to read as follows:
ARTICLE 5. WAGE PAYMENT AND COLLECTION.
§21-5-14b. Employer’s bond for retirement benefits.
(a) The Legislature
finds that employer-sponsored insurance and retirement benefits, important
fringe benefits of employment, are often at risk as the financial well-being
and capability of the employer is subject to change over the period of time
spanning a worker’s employment and retirement years. In order to further secure the benefits
offered to working West Virginians in private, employer-sponsored insurance
and/or pension plans, the Legislature finds it prudent to establish this
security bond requirement.
(b) Employers with fewer
than fifty employees who offer an employee insurance or retirement plans as a
benefit of employment shall provide and maintain a security bond in any form
prescribed or approved by the commissioner, as security for insurance and
retirement-related obligations of the employer, payable to the State of West
Virginia, with the condition that the person, firm, bank or corporation pay
benefits due members of the retirement plan. The amount of the bond shall equal
or exceed the actuarially accrued liability of the plan, as determined annually
by an independent actuary. The bond may
include, with the approval of the commissioner, surety bonding, collateral bonding
(including cash and securities), letters of credit, establishment of an escrow
account or a combination of these methods.
The commissioner shall, upon receipt of any deposit of cash, securities,
certificates or other assets offered to fulfill the bond requirement, promptly
place the same with the State Treasurer whose duty it shall be to receive and
hold the same in the name of the state in trust for the purpose for which the
deposit is made. The employer making the
deposit shall be entitled from time-to-time to receive from the State Treasurer,
upon the written approval of the commissioner, the whole or any portion of any
cash, securities, certificates or other assets so deposited, upon depositing
with him or her in lieu thereof, cash or other securities or certificates of
the classes herein specified having value equal to or greater than the sum of
the bond. The bond requirement may not
be waived based on the financial strength or demonstrated responsibility of the
employer. The commissioner shall cause a
copy of the bond to be filed in the office of the clerk of the county
commission of the county wherein the person, firm or corporation is doing
business to be available for public inspection.
(c) Any employee whose
insurance or retirement benefits are secured by the security bond specified in
this section has a direct cause of action against the security bond for
retirement benefits that are due and unpaid.
(d) Any person entitled
to benefits from the insurance and/or retirement plan having those benefits
unpaid, may inform the commissioner of the claim for unpaid benefits and
request certification thereof. If the
commissioner, upon notice to the employer and investigation, finds that the
benefits or a portion thereof are unpaid, the commissioner shall make demand of
the employer for the payment of the benefits.
If payment is not forthcoming within the time specified by the
commissioner, not to exceed thirty days, the commissioner shall certify the
claim or portion thereof, and forward the certification to the bonding company
or the State Treasurer, who shall provide payment to the affected employee
within fourteen days of receipt of the certification. The bonding company, or any person, firm or
corporation posting a bond, thereafter shall have the right to proceed against
a defaulting employer for that part of the claim the employee was paid. The procedure specified herein shall not be
construed to preclude other actions by the commissioner or employee to seek
enforcement of the provisions of this article by any civil proceedings for the payment
of benefits or by criminal proceedings as may be determined appropriate.
(e) Benefits due persons
under the employer-sponsored insurance and/or retirement plans are not an
obligation of the state except for the state’s responsibility to administer and
pay out funds held for security pursuant to this section.
NOTE: The purpose of this bill is
to require security in the form of bond, cash or other collateral to protect
private, employer-sponsored insurance and pension plans.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.