Client Alerts

ERISA QPAM Exemption Amended to Cover QPAM In-House Plans

July 19, 2010

Lawrence J. Hass, Joshua H. Sternoff & Matthew E. Nadworny

On July 6, 2010, the Department of Labor (the DOL) adopted an amendment to ERISA prohibited transaction exemption 84-14 (the QPAM Exemption) that will expand the coverage of the exemption to include the in-house pension and other employee benefit plans maintained by investment managers for their own employees. DOL proposed the amendment on August 23, 2005, having observed that some financial institutions believed incorrectly that investment managers could rely on the QPAM Exemption to avoid prohibited transactions in the management of their own plans. The recently adopted amendment to the QPAM Exemption replaces a temporary transitional exemption that DOL had issued previously, effective November 3, 2010.

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