HB 5529 Summary

• Establishes the Public Employee Benefit Solvency Authority as a quasi-public agency, effective July 1, 2012, governed by a 13-member board including the Comptroller, Treasurer, and Commissioner of Administrative Services as ex-officio members.

• Authorizes the authority to contract with insurance companies to issue individual universal life insurance policies on state employees, with the state designated as sole beneficiary and all proceeds deposited into the State Employees Retirement Fund.

• Requires written notification to affected state employees or retired employees within 10 days of policy issuance, with a 10-day right to object and void the policy.

• Designates the Public Employee Benefit Solvency Authority as a quasi-public agency subject to state regulations governing borrowing, bond issuance, and financial oversight by the State Treasurer.

• Amends insurance law to permit public employers and their pension systems to procure life insurance on employees and retired employees with written consent, creating a mechanism to fund pension obligations through insurance proceeds.