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H 2809

An Act requiring administrators of certain retirement plans to disclose conflicts of interest

194th Legislature (2025-2026) Introduced by Mike Brady and 9 co-sponsors

Requires administrators of 403(b) retirement plans for MA subdivision employees to disclose conflicts of interest, plan costs, and advisory fees to participants, from 2026.

Accompanied a study order, see H5312 (under House Rule 27)
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Bill Summary · H 2809

Summary: House Bill 2809 (H 2809) – An Act requiring administrators of certain retirement plans to disclose conflicts of interest

Overview

H 2809 seeks to increase transparency for retirement plans offered to employees of state subdivisions (e.g., municipalities, school districts) by requiring administrators to disclose potential conflicts of interest. The bill targets 403(b) plans and requires affirmative disclosures about investment costs and advisory fees to plan participants.

Key Provisions

  • Amendments to Section 37b of Chapter 71 of the General Laws (as appearing in the 2020 Official Edition) add a new requirement, effective on or after January 1, 2026.
  • Application: Applies to any company that administers a retirement plan offered by a political subdivision of the state to its employees.
  • Required disclosures to participants (initial enrollment and at least annually thereafter): 1) For each investment within the retirement plan, disclose the fee ratio and the return net of fees. 2) Disclose the fees paid to any person who, for compensation, engages in providing investment advice to plan participants (directly or via publications or writings).
  • Definitions: “Retirement plan” means any plan created under Section 403(b) of the Internal Revenue Code (or any later equivalent IRS code).
  • Purpose of disclosures: Increase transparency around costs and potential conflicts of interest in plan administration.

Effective Date and Scope

  • Effective on or after January 1, 2026.
  • Applies to retirement plans created under 403(b) provisions and administered by companies serving employees of Massachusetts political subdivisions.
  • Disclosures must be provided upon enrollment and updated at least annually.

Who Would Be Affected

  • Plan participants: employees enrolled in or considering enrollment in subdivision-sponsored retirement plans.
  • Plan administrators and administrators of retirement plans offered by political subdivisions.
  • Investment advisers and entities receiving compensation for providing investment advice related to the plan.

Legislative Process and Status

  • Introduced: February 27, 2025 (House No. 2809, presented by Rep. Carol A. Doherty).
  • Referred to Committee: Public Service (Feb. 27, 2025).
  • Related action: Senate concurrence noted; House docket references 3025.
  • Hearing status: Hearing rescheduled to July 9, 2025, at 1:00 PM–5:00 PM, in the committee room (status updated to A-2; prior notice had shown a B-1 location). The schedule indicates ongoing consideration.
  • Related bill: HD 3025 (noted as replacing or superseding related measures in subsequent actions).

Potential Impacts

  • Positive: Enhances transparency for plan participants, enabling informed investment and advisory decisions; may improve oversight of fees and conflicts of interest.
  • Administrative: Likely requires plan sponsors and administrators to update disclosure materials and ensure annual reporting; potential cost implications for compiling and delivering disclosures.
  • Compliance: Creates a new statutory obligation that entities managing subdivision retirement plans must follow starting in 2026.

Notes

  • The bill focuses specifically on conflicts-of-interest disclosures related to investment fees and advisory fees for 403(b) retirement plans run by state subdivisions.
  • Final provisions and any amendments may be refined through committee discussion and floor action.

Compiled from official sources — confirm details with the bill’s official record.

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