Highlights:

• Effective April 1, 2006, coverage for certain retirement plan deposits increased to $250,000. The basic insurance limit for other depositors - individuals, joint account holders, businesses, government entities and trusts - remains at $100,000.
• Pass-through coverage for employee benefit plans is no longer tied to an institution's capital level, although institutions must meet certain capital requirements to accept employee benefit plan deposits.
• The FDIC Board of Directors is authorized to increase the insurance limits for all deposit accounts every five years, beginning in 2011, based on the rate of inflation.
• The FDIC issued an FDIC Consumer News Special Bulletin (revised from the April 2006 version) and two statement stuffers to help insured institutions communicate the changes in deposit insurance coverage to employees and customers. PDF copies can be downloaded from the FDIC's Web site at http://www.fdic.gov/consumers/consumer/news/special/index.html (for the bulletin) and http://www.fdic.gov/deposit/deposits/stuffer/index.html (for the statement stuffers) and may be reproduced without permission from the FDIC.
• This FIL supersedes FIL-27-2006, dated March 28, 2006.

Distribution:
FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
Compliance Officer

Related Topics:
FDIC Deposit Insurance Regulations 12 C.F.R. 330

Attachment:
Final Rule - PDF 64k (PDF Help)

Contact:
FDIC Call Center, 1-877-275-3342

Printable Format:
FIL-83-2006 - PDF 28k (PDF Help)

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2006/index.html.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562- 2200).