DOL Proposes Changes To ERISA Settlement Rules

Law360, New York (November 20, 2007, 12:00 AM EST) -- The U.S. Department of Labor on Wednesday proposed changes to the rules governing settlements made under the Employee Retirement Income Security Act.

The department’s Employee Benefits Security Administration said it wants to amend the existing class exemption, commonly known as the settlement class exemption, from the prohibited transaction restrictions of ERISA.

The amendment would allow plans to use currently non-qualifying employer securities such as warrants and stock rights in litigation settlements, including bankruptcy proceedings.

The department said it is proposing the amendment because it recently received...
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