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Release Date: 07/02/2002
Release Number: 02-14
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Washington DC - The U. S. Department of Labor’s Pension
and Welfare Benefits Administration (PWBA) today finalized an amendment to
Prohibited Transaction Exemption (PTE) 96-62, known as EXPRO. This class
exemption will streamline the process for parties to seek authorization from the
department to engage in certain prohibited transactions. |
The Employee Retirement Income Security Act (ERISA) allows
the department to grant exemptions from all or any part of the restrictions
imposed by ERISA’s prohibited transaction provisions. |
PTE 96-62 currently requires that applicants demonstrate to
PWBA that their proposed transactions are substantially similar to transactions
in at least two exemptions previously granted by the department within five
years of their submission. |
The success of the EXPRO program to date has resulted in
fewer granted exemptions that may be cited by applicants who want to take
advantage of the expedited process under EXPRO. Therefore, the department
amended EXPRO to provide applicants with more cases on which to base their
transactions. The amendment to EXPRO will allow applicants to cite, as
substantially similar, either two individual exemptions granted by the
department within the previous five years, or one individual exemption granted
within the past 10 years and a transaction “authorized” under the EXPRO
exemption within the past five years. |
Over 180 EXPRO transactions have been authorized as of June
2002. EXPRO has significantly reduced the number of individual exemptions
relating to routine transactions, thus allowing applicants to receive exemptions
in a more timely fashion and often saving them the cost of going through the
more formal process for exemptions. |
The final amended exemption is to be published in the July
3, 2002 Federal Register. |
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 202.693.7775. |