29 Cfr § 2570.30

2/3/2021

29 CFR § 2570.30 - Scope of rules. | CFR | US Law | LII / Legal Information Institute

LII > Electronic Code of Federal Regulations (e-CFR) > Title 29 - Labor
> Subtitle B - Regulations Relating to Labor
> CHAPTER XXV - EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF
LABOR
> SUBCHAPTER G - ADMINISTRATION AND ENFORCEMENT UNDER THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974
> PART 2570 - PROCEDURAL REGULATIONS UNDER THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT
> Subpart B - Procedures Governing the Filing and Processing of Prohibited Transaction
Exemption Applications
> § 2570.30 Scope of rules.

29 CFR § 2570.30 - Scope of rules.
CFR

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§ 2570.30 Scope of rules.
(a) The rules of procedure set forth in this subpart apply to prohibited
transaction exemptions issued by the Department under the authority of:
(1) Section 408(a) of the Employee Retirement Income Security Act of
1974 (ERISA);
(2) Section 4975(c)(2) of the Internal Revenue Code of 1986 (the Code);

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or
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Section 102 of Presidential Reorganization Plan No. 4 of 1978 (3 CFR part
332 (1978), reprinted in 5 U.S.C. app. at 672 (2006), and in 92 Stat. 3790
(1978)), effective December 31, 1978, generally transferred the authority of
the Secretary of the Treasury to issue administrative exemptions under
section 4975(c)(2) of the Code to the Department of Labor.

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29 CFR § 2570.30 - Scope of rules. | CFR | US Law | LII / Legal Information Institute

(3) The Federal Employees' Retirement System Act of 1986 (FERSA) (5
U.S.C. 8477(c)(3)).
(b) Under these rules of procedure, the Department may conditionally or
unconditionally exempt any fiduciary or transaction, or class of fiduciaries or
transactions, from all or part of the restrictions imposed by section 406 of
ERISA and the corresponding restrictions of the Code and FERSA. While
administrative exemptions granted under these rules are ordinarily
prospective in nature, an applicant may also obtain retroactive relief for past
prohibited transactions if certain safeguards described in this subpart were in
place at the time the transaction was consummated.
(c) These rules govern the filing and processing of applications for both
individual and class exemptions that the Department may propose and grant
pursuant to the authorities cited in paragraph (a) of this section. The
Department may also propose and grant exemptions on its own motion, in
which case the procedures relating to publication of notices, hearings,
evaluation and public inspection of the administrative record, and modification
or revocation of previously granted exemptions will apply.
(d) The issuance of an administrative exemption by the Department under
these procedural rules does not relieve a fiduciary or other party in interest or
disqualified person with respect to a plan from the obligation to comply with
certain other provisions of ERISA, the Code, or FERSA, including any
prohibited transaction provisions to which the exemption does not apply, and
the general fiduciary responsibility provisions of ERISA which require, among
other things, that a fiduciary discharge his or her duties respecting the plan
solely in the interests of the participants and beneficiaries of the plan and in a
prudent fashion; nor does it affect the requirement of section 401(a) of the
Code that the plan must operate for the exclusive benefit of the employees of
the employer maintaining the plan and their beneficiaries.
(e) The Department will not propose or issue exemptions upon oral request
alone, nor will the Department grant exemptions orally. An applicant for an
administrative exemption may request and receive oral advice from
Department employees in preparing an exemption application. However, such
advice does not constitute part of the administrative record and is not binding
on the Department in its processing of an exemption application or in its
examination or audit of a plan.
(f) The Department will generally treat any exemption application that is filed
solely under section 408(a) of ERISA or solely under section 4975(c)(2) of the
Code as an exemption request filed under both section 408(a) and section

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2/3/2021

29 CFR § 2570.30 - Scope of rules. | CFR | US Law | LII / Legal Information Institute

4975(c)(2) if it relates to a transaction that would be prohibited both by
ERISA and the corresponding provisions of the Code.

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