Advisory Opinion 1975-131

Dear :

I am writing in response to your letter of September 19, 1975 in which you raise questions concerning the effect on a multi-employer welfare plan of the failure of certain employers to meet their contribution obligations.

The question of whether, and, if so, to what extent and under what circumstances, delinquency of employer contributions may involve a plan or plan fiduciaries in prohibited extensions of credit, is currently under consideration within this Department. You may be familiar with a proposed class exemption for multi-employer plans published by the Internal Revenue Service and this Department on June 2, 1975, 40 F.R. 23799. I am enclosing a copy of that publication for your convenience. The numerous and varied comments submitted in response to this proposal are currently under consideration.

With respect to your further questions, we have no doubt that the Secretary of Labor has enforcement power with respect to welfare plans. Except as specified in section 502(b) of the Act, no particular form of action or notice is required to invoke the Secretary's enforcement authority, and any information brought to the attention of this Department which suggests a possible violation of the Employee Retirement Income Security Act of 1974 will be carefully reviewed to determine whether enforcement activity is warranted.

We trust this information will be of assistance to you.