News Flash • Governor signs Singer bill to increase cap on A

Today, Governor Murphy signed a bipartisan bill sponsored by Senator Robert Singer (R-30) to increase the payout amount for annuity products from insolvent insurance companies.

“Thanks to the hard work of the Legislature and now the Governor, New Jersey insurance consumers can rest easy knowing their savings are safer,” said Senator Singer. “The insurance industry provides protection to consumers who hold certain retirement investments, but a $100,000 safety net doesn’t go as far as it once did. Raising the withdrawal cap to $250,000 will protect more money to give New Jerseyans more peace of mind in retirement.”

If an insurance company becomes insolvent, government guarantee associations step in and take over the invested assets in a process known as insolvency. Life insurance and pension policyholders can then be paid a certain amount of the protected benefits.

Senator Singer’s current bill (S-3371) will allow the New Jersey Life and Health Guaranty Association to pay out up to $250,000 to pension plan members.

You can read more information about the law online.

To speak with Senator Singer, please contact Chris Sivel, SRO Deputy Director of Communications at (email protected).