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Release Date: 02/20/2003
Release Number: 03-9
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 (EBSA) released an advisory
opinion on February 12, 2003, providing employee benefit plans the
flexibility to use overdraft protection in processing securities
transactions. The advisory opinion states that an employee benefit plan
may complete transactions in a timely manner with the security of
overdraft protection services provided by their bank. |
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Advisory Opinion Letter 2003-02A provides that such
services are permissible under certain statutory exemptions of the
Employee Retirement Income Security Act (ERISA) regarding general services
and bank ancillary services. In the absence of an exemption, overdraft
protection services would violate ERISA’s prohibited transaction rules. |
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The advisory opinion will be available on EBSA’s Web
site at www.dol.gov/ebsa. |
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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. |
