Annuity contracts for school and higher education employees must meet specific investment option requirements.

The bill amends South Carolina law to regulate annuity contracts for school and higher education employees. It mandates that contracts must offer investment options with fees not exceeding 0.5% and no front-end sales, advisory, or surrender charges. Required investment options include target-based, broad-based domestic and bond index funds, and international index funds, all with specified expense ratios. If a district or institution has a pre-existing contract that does not meet these requirements, participants can continue contributions under the old terms until July 1, 2026.

Annuity contracts for school and higher education employees must meet specific investment option requirements.

The bill amends South Carolina law to regulate annuity contracts for school and higher education employees. It mandates that contracts must offer investment options with fees not exceeding 0.5% and no front-end sales, advisory, or surrender charges. Required investment options include target-based, broad-based domestic and bond index funds, and international index funds, all with specified expense ratios. If a district or institution has a pre-existing contract that does not meet these requirements, participants can continue contributions under the old terms until July 1, 2026.