Agency Information Collection Activities; Submission for OMB Review; Comment Request; Prohibited Transaction Class Exemption 1992-6: Sale of Individual Life Insurance or Annuity Contracts by an Employee Benefit Plan
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Department of Labor (DOL) is seeking Office of Management and Budget (OMB) approval under the Paperwork Reduction Act for the information collection tied to Prohibited Transaction Class Exemption 1992-6 (PTE 92-6). This exemption allows employee benefit plans to sell individual life insurance or annuity contracts to specific parties like insured participants, their relatives, employers, other plans, or trusts without violating prohibited transaction rules, provided conditions are met. For sales to employers, relatives, trusts, or other plans, the insured participant must first be notified of the sale, given the chance to buy it themselves, and provide written consent declining the purchase. The notice invites public comments on the necessity, burden, and improvements to this ICR, with a deadline of May 4, 2026. DOL estimates 25,770 respondents and responses annually, with 5,154 hours of time burden and $834 in other costs. This is a routine renewal of OMB Control Number 1210-0063 for three years, ensuring compliance with federal paperwork rules while maintaining fiduciary protections in ERISA-governed plans. Comments should be submitted via www.reginfo.gov within 30 days of publication. The related initial notice appeared in the Federal Register on July 11, 2025.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- DOL submitting ICR renewal for PTE 92-6 to OMB for 3-year authorization.
- Public comment deadline: May 4, 2026.
- Estimated 25,770 annual respondents and responses.
+ 3 more changes with Pro
Obligations
What this law requires
Before selling an individual life insurance or annuity contract to an employer, relative, trust, or another employee benefit plan, the plan must first inform the insured participant of the proposed sale
Give the insured participant the opportunity to purchase the individual life insurance or annuity contract from the plan before selling it to an employer, relative, trust, or another plan
Obtain written consent from the insured participant stating they elect not to purchase the policy and consent to the plan's sale of the policy to the employer, relative, trust, or other plan
Maintain compliance with all conditions set forth in Prohibited Transaction Class Exemption 1992-6 when selling individual life insurance or annuity contracts
Submit information collection activities for OMB review and approval under the Paperwork Reduction Act before collecting information from respondents