August 2024 Annuity updates from Corebridge Financial

Important update on the New DOL Retirement Security Rule Last month, a Compliance Bulletin was issued summarizing the adoption by the U.S. Department of Labor (“DOL”) of the Retirement Security Rule (“Rule”) and related amendments to Prohibited Transaction Exemptions 84-24 and 2020-02 (“PTEs”) with a phased implementation beginning on September 23, 2024. Various insurance trade groups filed lawsuits challenging the validity of the Rule and the amended PTEs, and each Federal District Court hearing the case granted Plaintiffs’ request for a stay of the Rule and the PTE amendments while the lawsuits are pending. Read the Compliance Bulletin for more information related to this important update. 

Annuity State Tax Withholding Guidelines Enhancement
As part of the ongoing effort to provide helpful information to financial professionals and contract owners, the Annuity State Tax Withholding Guidelines has been enhanced to include more state form information and New York’s specific tax withholding requirements.

Access the Guidelines here . A link to the Guidelines will be on Corebridge’s withdrawal forms and all order entry systems will generate the Guidelines with any withdrawal form.

Read the Compliance Bulletin that describes the enhancements and the Guidelines overall.

Please note: state regulations and the content of the Guidelines are subject to change. Therefore, please refer to the Corebridge website or the forms repositories for the latest version of the Guidelines. 

Missouri adoption of the Revised NAIC Suitability in Annuity Transactions regulation (effective August 30, 2024)

Financial professionals in the states of Missouri must complete required training due to the National Association of Insurance Commission (NAIC) revisions to its Model Regulation 275 Suitability in Annuity Transactions.

Read the state-specific Compliance Bulletin for deadlines and changes to the Corebridge application submission process. 

Reinstatement of Florida Disclosure & Comparison Form
The Florida DFS announced the reinstatement of the “Disclosure and Comparison of Annuity Contracts” form (state form number is DFS-H1-1981). This is a New Business requirement, and all applications signed or uploaded on and after 8/19/24 must include this form for replacement business in which Corebridge conducts Suitability Supervision. On 8/19/24, Corebridge order entry systems and form repositories will provide this form.