Introduced By: Representative Rep. Moura
Date Introduced : June 16, 1998 February 3, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 36-13-1 of the General Laws in Chapter 36-13 entitled "Deferred Compensation Plans" is hereby amended to read as follows:
36-13-1. Deferred compensation plans authorized. --
{ADD (a) ADD} The state or any city, town, or other political subdivision
may, by contract, agree with any employee to defer, in whole or
in part, any portion of that employee's compensation, and may
subsequently contract with financial institutions for the purchase
of government securities or with other financial entities for
the purchase of mutual funds, {DEL or DEL} {ADD and ADD} procure
a fixed or variable life insurance or annuity contract for the
purpose of providing funds to meet its obligations under a deferred
compensation program for the employees from any financial institutions
or from any life underwriters duly licensed by this state who
represents an insurance company licensed to contract business
in this state.
{ADD (b) In the administration of a deferred compensation plan for state employees authorized under this chapter, after the effective date hereof , the state shall engage three companies ("Authorized Companies") to administer such deferred compensation plans. After the effective date hereof, only such Authorized Companies shall be entitled to enroll state employees in such deferred compensation plans in accordance with the following guidelines: ADD}
{ADD (1) Employees must have the option of purchasing or investing in alternative financial products referred to herein which have been approved by the department of business regulation; ADD}
{ADD (2) The alternative financial products shall include, without limitation, a variable product and a fixed product; ADD}
{ADD (3) the Authorized Companies (or an entity related thereto) must: ADD}
{ADD (i) be selected in accordance with the provisions of this Chapter36-13. ADD}
{ADD (ii) convenant that all employees covered under any plan authorized ADD}
{ADD under this chapter shall, at all times, be granted the unfettered right ADD}
{ADD to cancel, change, liquidate, amend or interchange any investment ADD}
{ADD contract or product purchased in any such plan without such ADD}
{ADD employees incurring a financial penalty or fee of any kind or nature ADD}
{ADD imposed by contract, and ADD}
{ADD (iii) be granted equal access to all eligible employees; ADD}
{ADD (4) procedures shall be established to ensure that personalized information ADD}
{ADD regarding employees shall not be provided to third parties by the Authorized Companies. "Personalized Information" shall include, without limitation, social security numbers, home addresses, telephone numbers, amounts invested, medical or disability information." ; and ADD}
{ADD (5) The Authorized Companies shall be permitted to offer any financial product referred to herein which shall have been approved by the Department of Business Regulation. ADD}
{ADD Notwithstanding any other provisions of this section (b), if the department of administration determines that less than three companies are qualified to be engaged as Authorized Companies because of (a) insufficient experience in the administration of deferred compensation plans or (b) a failure to assure adherence to the guidelines set forth herein, the state may engage less than three Authorized Companies. ADD}
{ADD (6) If any provision of this section or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the section which can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable. ADD}
{ADD ADD}
SECTION 2. This act shall take effect on October 1, 1998.
