DOL Reviews Plan-Sold Annuities: Exemptions Under ERISA
Published Date: 4/3/2026
Notice
Summary
The Department of Labor is asking for public feedback on a rule that lets employee benefit plans sell life insurance or annuity contracts to plan members, their families, employers, or related trusts. Before selling to anyone but the insured participant, the plan must offer the contract to the participant first. Comments are open until May 4, 2026, and this helps keep the process clear and fair without adding extra costs.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Plans allowed to sell individual policies
The rule (PTE 92-6) lets an employee benefit plan sell individual life insurance or annuity contracts it holds to specific buyers: (1) the insured participant, (2) a relative beneficiary, (3) the employer whose employees are covered, (4) another employee benefit plan, (5) participants who are owner- or shareholder-employees, or (6) trusts established for the benefit of those participants or relatives, provided the class exemption’s conditions are met.
Participant must be offered policy first
If the plan wants to sell a policy to the employer, a relative, a trust, or another plan, the insured participant must be told about the proposed sale and given the chance to buy the contract first. The participant must give a written document saying they choose not to buy and that they consent to the sale.
Paperwork burden and OMB review
DOL is submitting the information collection (OMB Control Number 1210-0063) for PTE 92-6 and seeks authorization for three years. The agency estimates 25,770 respondents and responses, a total annual time burden of 5,154 hours, and total annual other costs of $834; public comments are due by May 4, 2026.
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