December 6, 1996
TO: PENSION COMMITTEE No. 47-96
RE: DOL PUBLISHES PROPOSED CLASS EXEMPTION FOR BANK COLLECTIVE
FUND CONVERSIONS
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The Department of Labor has published a proposed class exemption from ERISA’s prohibited
transaction rules to permit the in-kind transfer of benefit plan assets from a bank collective investment
fund to a bank-affiliated, no-load mutual fund when the bank is converting the collective investment fund
into a mutual fund. Previously, banks serving in a fiduciary capacity have sought individual exemptions
for such plan asset transfers. The proposed exemption also would provide retroactive exemptive relief
for such conversion transactions occurring from October 1, 1988 until the date the final class exemption
is published.
Comments regarding the proposed class exemption must be submitted to the Department on or
before January 13, 1997. The Institute intends to submit a letter in support of the issuance of the class
exemption. If you have any comments that you would like the Institute to raise in its submission, please
bring them to our attention by Friday, January 3.
Russell G. Galer
Assistant Counsel - Pension
Enclosure