Free Download: Sutherland Alert-2010 in Review: ERISA Individual Prohibited Transaction Exemptions

Free Download: Sutherland Alert-2010 in Review: ERISA Individual Prohibited Transaction Exemptions

by Dan Buchner and Mark Smith

In 2010, the Department of Labor (DOL) continued an active program of issuing individual exemptions from the prohibited transaction rules of ERISA. These rules generally prohibit, among other things:

  • Sale and lending transactions between: (1) certain retirement and other plans specified in ERISA and/or the Internal Revenue Code; and (2) a "party in interest" or "disqualified person" to that plan; and
  • Self-dealing or conflicted interests on the part of a plan "fiduciary."

DOL is, however, authorized to grant a conditional or unconditional exemption for an otherwise prohibited transaction if DOL determines that the exemption is: (1) administratively feasible; (2) in the interests of the plan and of its participants and beneficiaries; and (3) protective of the rights of plan participants and beneficiaries.

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