On March 23, 2022, the Brazilian National Council of Supplementary Private Pension (“CNPC”) published Resolution CNCP No. 54, which provides for the constitution of closed supplementary pension entities and the institution of benefit plans by settlor administrators. The new Resolution repeals Resolutions CGPC Nos. 12/2002, 03/2003, 11/2004 and 20/2006 and Resolution CNCP No. 18/2015.
We highlight below the main changes:
- Settlor administrators can now constitute an entity or institute a benefit plan in another entity, without any exception;
- The entity can now carry out operations with participants in the form of personal loans, under the provisions established in the National Monetary Council Resolution;
- Exclusion of the provision regarding a period of 180 days for Closed Supplementary Private Pension entities (“EFPCs”) to prove their effective operation — under penalty of cancellation of the authorization — in addition to the provision establishing that the authorization for the constitution of an EFPC could only be extended once for the same period;
- Inclusion of the provision for the benefit plan to provide additional coverage for survival, disability and death by contracting an institution authorized by the Superintendence of Private Insurance (SUSEP), as long as it is provided for in the regulation and the adhesion of the participants to this type of coverage is facultative.
The new Resolution will come into force on September 01, 2022.
Demarest’s Insurance, Reinsurance and Pension Plans team is available to provide more information on this and other related topics.