1 See Institute Memorandum to Pension Members No. 44-99 and Pension Operations Advisory Committee No. 55-99, dated
December 6, 1999.
[11797]
April 10, 2000
TO: PENSION MEMBERS No. 21-00
PENSION OPERATIONS ADVISORY COMMITTEE No. 26-00
RE: DOL CLASS EXEMPTION PROVIDING Y2K RELIEF
______________________________________________________________________________
The Department of Labor has finalized and published its exemptive relief to permit parties in
interest to make interest-free loans to employee benefit plans to help plans address year 2000 related
computer problems. The proposed exemption was published on November 29, 1999.1 This relief
amends Prohibited Transaction Exemption 80-26, which permits the lending of money or other
extensions of credit from a party in interest or disqualified person to an employee benefit plan and the
repayment of the loan or extension of credit, provided that conditions of the exemption are satisfied.
Specifically, the amendment extends PTE 80-26’s three-day window on loans to enable the making of
certain interest-free loans for Y2K-related purposes (as specified in the amendment), so long as the loans
are repaid by December 31, 2000.
The Department rejected comments requesting that the relief be expanded to include situations
such as computer viruses, hacking, and other malfeasance that would impede plan administration or to
cover any cash shortfall incurred in the period covered by the amendment.
Russell G. Galer
Senior Counsel
Attachment
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