February 02, 2023

Brad Campbell Addresses Captive Exemption Applications With Captive Intelligence

In “Are ERISA benefits back in fashion for captives?” Captive Intelligence turned to benefits and executive compensation partner Brad Campbell for insight on captive exemption applications to the Department of Labor (DOL).

Regarding the expedited process (ExPro), Campbell said, “Unofficially, they have not been interested in doing many ExPro exemptions in recent years. Officially, they’ve never said it’s not available.”

The publication reported that the DOL is reviewing its exemption program, including a proposal to scrap all anonymous communications between the Department and entities who are considering making an application. Campbell stated, “Those kinds of informal conversations have saved a tremendous amount of time for the Department as well as the regulated community, and for them to say they were no longer interested in permitting those was very controversial.”

“Their agenda says they’re going to finalize the new rule in May. Maybe they’ll meet that timeframe; maybe they won’t. As of right now, it’s not been submitted to the White House for review,” Campbell noted. He also suggested that the captive industry could consider applying for a class exemption, meaning any company that meets its terms can utilize it and would not have to make an individual application.

Campbell added, “The question is, ‘Does the DOL have the interest, and does it have the capacity to work on that kind of rule at this point?’ It’s certainly not on their agenda, but that would be a better solution than doing the individual exemption route.”

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