Office of Thrift Supervision Page 1 of 1 

112 CFR § 330.12(h), “Disclosure of capital

status.”

—John F. Downey 

Executive Director for Supervision

Regulatory Bulletin

• Explains the Federal Deposit

Insurance Act “pass-through”

deposit insurance coverage statutory requirements for

employee benefit plans (section

2a);

• Summarizes the regulation (section 2c); and 

• Sets forth FDIC examination

procedures for determining

insured institutions’ regulatory

compliance (section 3). 

Examiners will continue to follow

the section 3 examination procedures for savings association safety

and soundness examinations initially adopted by issuance of Regulatory Bulletin 33. We will, at a later

date, incorporate the procedures

into the Thrift Activities Regulatory

Handbook, Section 120, Capital

Adequacy. Examiners are to continue to include in their workpapers

documentation of the examination

procedures performed.

Purpose of 12 CFR § 330.12(h)

The FDIC Improvement Act of 1991,

and the FDIC’s implementing regulation2 adopted on May 11, 1993,

limit the availability of employee

benefit plan “pass-through” insurance coverage to employee benefit

plan deposits made at banks and

thrifts that meet certain capital

For Further Information Contact: Your

Regional Office, or Francis E. Raue,

Policy Analyst, Supervision Policy,

Washington, D.C. at (202) 906-5750.

Regulatory Bulletin 33a

Revision to RB 33

The Federal Deposit Insurance Corporation (FDIC) issued an interpretative letter stating that simplified

employee pension plan accounts

(SEPs) are not subject to the FDIC

§ 330.12 “pass-through” insurance

rules, including the disclosures that

the section requires. Accordingly,

the FDIC issued revised examination procedures to remove SEPs

from the types of deposit accounts

affected by the “pass-through” rule.

This is the only substantive change

made to the attachment.

Examination Procedures

The attached January 23, 1996 FDIC

memorandum replaces the FDIC’s

June 1, 1995 memorandum attached

to Regulatory Bulletin 33. The

attachment:

• Provides background information on the FDIC’s “passthrough” deposit insurance coverage disclosure rule1 concerning employee benefit plan

deposits (section 2);

March 13, 1996

Section: 120

RB 33a

requirements. “Pass-through” coverage means that the insurance

passes through the depositor (plan

administrators or managers) of the

funds to each owner of the funds

(each employee participant in the

plan). 

Effective July 1, 1995, the FDIC

added paragraph (h) to § 12 CFR

330.12 to provide a means for

employee benefit plan depositors to

obtain timely capital level information needed to determine whether

deposits qualify for “pass-through”

insurance coverage. The new regulation requires an insured institution

to provide, in the circumstances set

forth in the regulation, written

notices to any depositor of

employee benefit plan funds of the

institution’s capital levels and

prompt corrective action capital categories.

Savings Association Compliance

Publication of this regulatory bulletin is also intended to assist insured

savings associations in complying

with the new disclosure requirements. 

Attachment

Office of Thrift Supervision

Handbook: Thrift Activities

Subjects: Capital Adequacy 

FDIC “Pass-Through” Deposit Insurance Coverage 

Disclosure Rule

Summary: This bulletin explains OTS examination procedures for determining compliance with the FDIC’s “passthrough” insurance disclosure rule covering employee benefit plan deposits. RB 33, which was issued on

August 31, 1995, is hereby rescinded.

212 CFR § 330.12, “Retirement and other

employee benefit plan accounts.”