PTCE 77-3 applies to plan's in-kind exchange of plan assets for proprietary mutual funds
Article Abstract:
The US Labor Dept allowed the application of the Prohibited Transaction Class Exemption 77-3 to an in-kind exchange of an employer bank's retirement plan assets for shares in mutual funds. Advisory Opinion 98-06A was issued to Federated Investors which works with banks acting as investment advisers to institute the proprietary mutual funds in which they may later wish to use as investment vehicles for their retirement plans. The scope of the opinion was specifically limited and ERISA fiduciary rules must be met.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1998
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Right to vote ESOP shares not a plan asset
Article Abstract:
Rights to vote employee stock option shares are not per se plan assets under ERISA held the US 6th Circuit Court of Appeals in 1998's Grindstaff v. Green contrary to the US Labor Dept's argument. A factual determination should be made as sin Grindstaff where the board of directors voted themselves plan sponsor at a regularly scheduled annual stockholders' meeting. The board which was primarily concerned about issues of corporate control was not subject to ERISA self-dealing rules.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1998
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IRS modifies definition of plan eligible for VCR and walk-in CAP programs
Article Abstract:
The IRS modified its remedial correction programs for qualified benefit plans through the issuance of Revenue Procedure 96-29. The determination letter requirement for voluntary compliance program requests has been loosened. Proof of a pre-1986 favorable determination letter is acceptable, as is proof of a timely determination letter request. The 'plans under examination' provision that disallows relief to plans already being examined has been expanded.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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