As discussed in the August 3, 2010 Alert, the Department of Labor (the “DOL”) last summer issued an interim final regulation under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Section 408(b)(2) of ERISA provides an exemption from ERISA’s prohibited transaction rules for reasonable arrangements with service providers. The interim final regulation was originally to be effective July 16, 2011. On February 11, 2011, the DOL announced that the applicability date for the interim final regulation is extended to January 1, 2012. We anticipate that the DOL will be issuing an updated final regulation in the next few months.
Alert February 15, 2011