Whirlpool has withdrawn its request for federal regulatory approval of an innovative retiree health care benefits funding arrangement that would have made use of its captive insurance company, a tax-free trust and commercial life insurance.
The Benton Harbor, Mich.-based appliance maker said it was withdrawing the application in the wake of the Labor Department’s earlier rejection of its request to have its proposal considered under a special expedited review process.
At the time of the rejection, Whirlpool said it would seek a standard review of its application, a process that typically takes several months to a year.
Whirlpool’s plan involved a Whirlpool-established and -funded voluntary employee beneficiary association, the Vermont branch of Whirlpool’s Bermuda-based captive, a fronting insurer and a group universal life insurance policy.
Whirlpool, in proposing the arrangement, acknowledged that it would have provided it some tax advantages, as well as boost the funding security of retiree health care benefits.
From Business Insurance