DOL Proposes ERISA Exemption For New GM

Law360, New York (September 17, 2009, 1:59 PM EDT) -- The U.S. Department of Labor has proposed an exemption to employment law that would allow General Motors Co., or “New GM,” to transfer securities that include a $2.5 billion promissory note to a health plan covering 700,000 dependents and retirees.

The Labor Department's Employee Benefits Security Administration announced the proposed exemption Thursday, pointing out that without an exemption such a transfer — which includes common and preferred stock in addition to the promissory note — would violate the Employee Retirement Income Security Act.

“The law gives...
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