The procedure for filing and processing applications for exemptions from the prohibited transaction provisions of the Employee Retirement Income Security Act (ERISA) would be updated, under a proposed regulation from the U. S. Department of Labor’s Employee Benefits Security Administration (EBSA).
“The proposed exemption procedure retains the section-by-section topical structure of the existing regulation,” EBSA explained.
The proposed changes include the following:
- 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; and
- 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 on August 30, 2010.