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Release Date: 06/02/2003
Release Number: 03-20
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA) has proposed a
class exemption to create a level playing field between corporate real
estate investment trusts (REITs) and trust REITs. |
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Under ERISA, an individual account plan maintained by a
corporate REIT can invest up to 100% of its assets in the stock issued by
the REIT, if permitted under the provisions of the plan. Shares issued by
a trust REIT, however, are not stock and the existing ERISA provisions do
not allow trust REITS to offer employer securities as an investment
option. |
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If granted, the class exemption would provide
retroactive and prospective relief for plans sponsored by a trust REIT to
invest in securities issued by the REIT. Among the conditions contained in
the class exemption are requirements that the trust REIT securities be
purchased or contributed at the prevailing or current market price and
that plan participants receive current financial information about the
REIT. |
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The proposed exemption is scheduled for publication in
the June 3, 2003 Federal Register. Comments on the proposal should be
submitted in writing by August 4, 2003 to the Employee Benefits Security
Administration, Room N-5649, 200 Constitution Avenue, NW, Washington, DC
20210, Attention: REIT Class Exemption Proposal or by email to
moffitt.betty@dol.gov. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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