Source: 28 FR 14412, Dec. 27, 1963, unless otherwise noted.
Redesignated at 50 FR 26706, June 28, 1985.
(a) This part discusses the meaning and scope of section 13(c) of
the Welfare and Pension Plans Disclosure Act of 1958 (76 Stat. 39, 29
U.S.C. 308d(c)) (hereinafter referred to as the Act). This provision
makes it unlawful ``for any person to procure any bond [required by the
Act] from any surety or other company or through any agent or broker in
whose business operations such plan or any party in interest in such
plan has any significant control
or financial interest, direct or indirect.'' Because the prohibition
contained in this provision is broadly stated, it becomes a matter of
importance to determine more specifically the types of arrangements
intended to be prohibited.
(b) The provisions of section 13 of the Act, including 13(c) are
subject to the general investigatory authority of the Director, Office
of Labor-Management and Welfare-Pension Reports, embodied in section 9
of the Act. The correctness of an interpretation of these provisions can
be determined finally and authoritatively only by the courts. It is
necessary, however, for the Labor-Management Services Administrator to
reach informed conclusions as to the meaning of the law to enable him to
carry out his statutory duties of administration and enforcement. The
interpretations of the Labor-Management Services Administrator contained
in this part, which are issued upon the advice of the Solicitor of
Labor, indicate the construction of the law which will guide the Labor-
Management Services Administrator in performing his duties unless and
until he is directed otherwise by authoritative ruling of the courts or
unless and until he subsequently decides that his prior interpretation
is incorrect. Under section 12 of the Act, the interpretations contained
in this part, if relied upon in good faith, will constitute a defense in
any action or proceeding based on any Act or omission in alleged
violation of section 13(c) of the Act. The omission, however to discuss
a particular problem in this part, or in interpretations supplementing
it, should not be taken to indicate the adoption of any position by the
Labor-Management Services Administrator with respect to such problem or
to constitute an administrative interpretation or practice.
Interpretations of the Labor-Management Services Administrator with
respect to 13(c) are set forth in this part to provide those affected by
the provisions of the Act with ``a practical guide * * * as to how the
office representing the public interest in its enforcement will seek to
apply it'' (Skidmore v. Swift & Co., 323 U.S. 134, 138).
(c) To the extent that prior opinions and interpretations relating
to 13(c) are inconsistent with the principles stated in this part, they
are hereby rescinded and withdrawn.
