📜DOL Finalizes Removal of Obsolete Insurance Regulation
Removal of Definition of “Plan Assets”-Insurance Company General Accounts
Summary
This DFR removes 29 CFR 2550.401c-1 from the Code of Federal Regulations, which the Department of Labor (DOL) believes is obsolete. The regulation applies only to certain insurance policies or contracts issued to (or on behalf of) employee benefit plans on or before December 31, 1998. Given the unlikelihood that any of these policies or contracts remain in effect, the DOL believes the regulation is no longer needed and, if left on the books, could add confusion and unnecessary complexity. Removing obsolete regulations eliminates the burden on the public of having to determine whether they need to comply with the regulations. This action is being taken pursuant to Executive Order 14192, titled Unleashing Prosperity Through Deregulation.\1\ This action improves the daily lives of the American people by reducing unnecessary, burdensome, and costly Federal regulations. ---------------------------------------------------------------------------
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
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The removal of the regulation concerning “plan assets” applicable to outdated insurance policies simplifies compliance for businesses, reducing regulatory burden and potential legal confusion. This action aligns with efforts to deregulate and could lead to cost savings in compliance and administrative processes.