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, including restrictions on fees and requirements for the types of funds offered. Specifically, vendors must not impose an administrative asset-based fee exceeding 0.5%, and they cannot charge front-end sales or advisory fees, nor surrender charges. Additionally, the contracts must include access to various index funds with specified expense ratios and provide employees with a one-page summary of all administrative fees.

Furthermore, the bill allows for a transition period for existing contracts, stating that if a district or institution has a contract with a vendor that does not meet the new requirements before July 1, 2026, employees may continue to contribute to their 403(b) retirement savings plans under the terms of the previous contract. The act is set to take effect on July 1, 2026.

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