Insurance and Annuity
Contracts and Mutual Fund Principal Underwriters (PTE 1984-24)
Revision of a currently approved collection
No
Regular
11/03/2023
Requested
Previously Approved
36 Months From Approved
08/31/2025
119,376
258,041
123,726
45,277
8,457
11,743
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 Department is proposing an
amendment to PTE 84-24 that would exclude investment advice
fiduciaries from the existing relief. The proposed amendment would
also provide exemptive relief to fiduciaries who are Independent
Insurance Producers that recommend annuities from an unaffiliated
Financial Institution to retirement investors if certain protective
conditions are met. The Department expects that excluding
investment advice fiduciaries would affect the number of affected
entities under the current provisions. Additionally, the conditions
proposed for independent insurance producers to qualify for relief
would add additional information collections for these entities.
The analysis uses updated labor cost estimates. Costs of postage
have been updated. Additionally, the number of plans and IRA have
been updated to reflect updated Form 5500 data. The estimated
number of new plans has also been updated to reflect Form 5500
data. The estimated number of insurance agents has been updated to
reflect the most current data. As a result, the number of responses
has decreased by 138,665 responses, the hour burden has increased
by 78,449 hours, and the cost burden has decreased by $3,286.
$0
No
No
No
No
No
No
No
James Butikofer 202 693-8434
Butikofer.James@dol.gov
No
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.