The U. S. Department of Labor's Employee Benefits Security Administration (EBSA) announced a proposed regulation to update the procedure for filing and processing applications for exemptions from the prohibited transaction provisions of the Employee Retirement Income Security Act (ERISA).
“The proposed exemption procedure retains the section-by-section topical structure of the existing regulation,” according to the EBSA press release. The proposed changes include:
- Requiring applicants to provide interested persons with a brief objective summary of complex transactions.
- Consolidating exemption policies and guidance within a single document.
- Updating the description of the department's authority to propose and issue administrative exemptions on its own motion.
- Adding a description of the current standards for obtaining retroactive exemption relief.
- Clarifying the content of specialized statements, as needed, from qualified independent appraisers and other relevant experts.
The proposed regulation was published in the Federal Register. Written comments on the proposed exemption procedures should be received by the Department of Labor on or before Oct. 14, 2010.