Insurance and Annuity Contracts and Mutual Fund Principal Underwriters (PTE 1984-24)
Extension without change of a currently approved collection
No
Regular
06/30/2022
Requested
Previously Approved
36 Months From Approved
08/31/2022
258,041
227,068
45,277
18,948
11,743
92,377
PTE 84-24 provides an exemption for these transactions for the following parties: insurance agents, insurance brokers, pension consultants, insurance companies and mutual fund principal underwriters in connection with transactions involving both employee benefit plans, as defined in ERISA section 3(3), as well as IRAs and other plans described in Code section 4975, such as Archer MSAs described in Code section 220(d), health savings accounts described in Code section 223(d) and Coverdell education savings accounts described in Code section 530. The exemption permits insurance agents, insurance brokers and pension consultants that are parties in interest or fiduciaries with respect to plans and IRAs to effect the purchase of the insurance or annuity contracts for the plans or IRAs and receive a commission on the sale. The exemption is also available for the prohibited transaction that occurs when the insurance company selling the insurance or annuity contract is a party in interest or disqualified person with respect to the plan or IRA.
US Code:
29 USC 1108
Name of Law: Employee Retirement Income Security Act of 1974
The following items have been updated to reflect recent data: labor cost estimates, postage costs, the number of plans and IRAs, the number of new plans, the number of insurance agents, and the electronic disclosure rate estimates.
The Department has revised its approach to estimating the affected entities of this exemption. This revision explicitly includes independent producers and insurance companies in the number of entities needing to prepare disclosures and authorizations. These updates have resulted in an increase in the number of disclosures produced and the cost burden.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
PTE 84-24 Supporting Statement 06.23.2022 clean.docx
PTE 84-24