The bill H. 3867 aims to amend Section 9-15-10 of the South Carolina Code of Laws, which pertains to the authorization of school districts and state-supported institutions of higher learning to purchase annuity contracts for their employees. The amendment specifies that these contracts must provide certain investment options, ensuring that they do not impose excessive fees or charges. Specifically, the bill mandates that vendors must not charge an administrative asset-based fee exceeding 0.5%, and they must not impose front-end sales, advisory, or surrender charges. Additionally, the vendors are required to offer a range of investment funds with capped expense ratios and provide employees with a one-page summary of all administrative fees.

Furthermore, the bill includes a provision that allows employees to continue contributing to their existing 403(b) retirement savings plans under previous contracts if their district or institution has entered into a contract with a vendor that does not meet the new requirements before July 1, 2026. The act is set to take effect on July 1, 2026, ensuring that the new regulations are implemented in a timely manner.

Statutes affected:
01/30/2025: 9-15-10
Latest Version: 9-15-10