Public Consultation on new rules and criteria for the operation of risk coverages offered in open pension plans.

On October 03, 2022, the Superintendence of Private Insurance (“SUSEP”) opened Notices 014/2022 and 015/2022 for public consultation, which introduce the draft of the CNSP Resolution and its respective SUSEP Circular, with the purpose of updating specific regulations on open pension plans with risk coverage – death and/or disability -, consolidating them with other pertinent regulations.

Regarding these public consultations, we highlight the following:

CNSP Resolution Draft

• provision defining “collective policy” as one executed between the assignor company and the Open Supplementary Private Pension Entities (“EAPC”), with the purpose of establishing the specifics of contracting the plan, as well as the rights and obligations of the assignor company, the EAPC, and participants, as an addition to the regulation;
• inclusion of section on Biometric Tables in the draft Circular and no longer in the text of the Resolution;
• exclusion of Information Reporting rules, because, according to the SUSEP, they will be addressed in the regulation of cash value insurance coverage;
• the provisions of the Resolution will be applicable to all open pension plans that offer coverage for death and/or disability, approved as of the beginning of the Resolution’s effectiveness.
• CNSP Resolutions No. 201/2008 and 362/2018 will be repealed.

SUSEP draft Circular

A summary of the main proposed changes can be accessed in the Recitals of the draft Circular, of which we highlight:

• no restriction on methods of premium payment;
• mandatory provision in the regulations and, when applicable, in the collective bargaining agreement, for the consequences of participant or institution;
• provision establishing that the EAPC is responsible for all information contained in the product’s advertising, guaranteeing the participants all the rights and conditions provided for in such material;
• Pension Plans that establish a rate change due to age reframing or other objective criteria must provide for the respective criteria of change in the regulation and actuarial technical;
• exclusion of restrictions referring to the biometric tables, given that the mortality table limits for risk coverage were extinguished;
• The provisions of the new Circular, if approved, will be mandatorily applied to the plans approved as of its entry into force;
• SUSEP Circulars No. 418/2011 and 581/2018, as well as Detec/Gab Circular Letter No. 02/2009 and 05/2011/SUSEP-CGPRO will be repealed.

Interested parties can submit contributions via e-mail to copep.rj@susep.gov.br until November 01,2022.

The full drafts can be accessed via the links below:

Resolution Draft.

Circular Draft.

Demarest’s Insurance, Reinsurance, Health and Private Pension team will monitor the development of this public consultation up to the publication of the final text and is available to provide further clarifications that may be necessary.