Advisory Opinions

Whether trustees for training and apprenticeship plans may be compensated for time spent on plan duties and reimbursed for related expenses, whether apprenticeship plans are exempt from all ERISA provisions, and whether fiduciary insurance should contain a “discrimination clause.”

Clarification of the participation requirements under ERISA for group health, life and disability insurance plans.

Whether an informal policy that refunds tuition to employees of a bank for successfully completed courses offered by the bank’s educational and recreational arm is covered under ERISA.

Whether money deducted from employees’ compensation and forwarded to various vacation and holiday funds may be reforwarded to the union to pay working dues.

Whether, in the absence of language in the trust instrument which restricts or precludes the trustees of a union pension trust fund from authorizing voluntary disclosure of data to a government agency, such disclosure would be prohibited by section 406 of ERISA, and, if not, whether any provision of ERISA would preclude such a trust fund from assuming the reasonable costs of producing the data requested by the government agency.

Whether investing the assets of a small pension or profit-sharing plan exclusively in shares of a mutual fund violates the diversification requirement under section 404(a)(1)(C) of ERISA.

This inquiry addresses the potential violation of section 404(a)(1) of ERISA regarding monthly payments made to a former administrative manager under the plan’s authorization, despite the fact that the individual was not permitted to be employed by the Funds.

Whether sections 404, 406, 407 and 408(e) of ERISA apply to profit sharing plans that propose to acquire either employer securities or preferred stock issued by corporations that own 100 percent of the outstanding shares of employers whose employees are covered by such profit-sharing plans.

Whether an enclosed written instrument satisfies requirements under ERISA and how to obtain rules and regulations, including reporting forms, adopted under the Act.

This inquiry addresses two concerns regarding reporting requirements and fiduciary liability under ERISA: (1) whether employee welfare benefit plans covering fewer than 100 participants may be exempt from certain reporting and disclosure provisions if the benefits are provided solely from the employer’s general assets or through insurance contracts, with premiums paid directly by the employer or employee organization; and (2) fiduciary liability under ERISA, particularly for health and life insurance plans funded through insurance carriers.