On March 23, 2022, the Brazilian National Superintendence of Supplementary Private Pension (“PREVIC”) published PREVIC Resolution No. 08/2022, which updates insurance contracting rules for coverage of Closed Supplementary Private Pension (“EFPC”) risks, based on new provisions established in CNPC Resolution No. 47/2021, which repeals PREVIC Instruction No. 07/2018.
Similarly to CNPC Resolution No. 47, the new Resolution maintained the main rules previously in force in the repealed Instruction, such as:
- possibility of partial or total coverage of the risks;
- requirement for EFPCs to carry out technical studies that substantiate the economic-financial and actuarial viability for each benefit plan, prior to contracting the insurances;
- dispensability of technical studies when contracting additional coverage for plans whose benefits resulting from disability or death are structured solely based on account balances;
- obligation for the actuarial technical note and the costing plan of each benefit plan to provide for the applicable processing of cases that involve exclusion of certain risks and refusal of participants or beneficiaries; and
- prohibition of the payment of amounts directly to the participant or beneficiary.
Notwithstanding, PREVIC’s new Resolution also reproduces part of the innovations established in CNPC Resolution No. 47/2021, as follows:
- Possibility of contracting insurance to cover actuarial or financial risks, besides the other scenarios already provided for in the previous regulations (participant disability, death of a participant or beneficiary, survival period of beneficiary, and deviation from the biometric hypotheses); and
- Obligation of disclosing to participants and beneficiaries, in the Annual Information Report, any type of payment made between the insurance company and the EFPC, other than as indemnity.
PREVIC’s Resolution No. 08/2022 will come into force on May 02, 2022.
Our considerations specifically concerning CNPC Resolution No. 47/2021 can be found here.
Demarest’s Insurance and Reinsurance team is available to provide any further information on this and other related topics.