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Release Date: 10/22/2003
Release Number: USDL 03-28
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 today announced a proposal to
amend and consolidate two class exemptions involving securities lending
between employee benefit pension plans and banks and broker-dealers. |
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The proposed exemption, which consolidates two existing
class exemptions, would permit securities to be loaned to United Kingdom
banks and broker-dealers and expands the permitted collateral in
securities lending transactions to include the currency of the United
Kingdom, the Euro, sovereign debt of member countries of the European
Monetary Union and irrevocable letters of credit by a United Kingdom bank.
The proposed revisions will assist pension plans in lending securities
from their portfolios to banks and broker-dealers as a way to earn
additional plan income and to pay plan fiduciaries for services related to
securities lending. |
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The Employee Retirement Income Security Act gives the
Labor Department authority to grant an exemption from the law’s
prohibited transaction provisions. The Department grants class exemptions
when it determines that the exemption is in the interest and protective of
the rights of benefit plan participants and beneficiaries. |
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Comments on the proposal or requests for a hearing
should be submitted to the Office of Exemption Determinations, Employee
Benefits Security Administration, Room N-5649, U. S. Department of Labor,
200 Constitution Ave., NW, Washington, D.C. 20210 by email to
moffitt.betty@dol.gov or by fax to 202.219.0204. |
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The proposal is scheduled to be published in the October
23, 2003 Federal Register. |
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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. |
