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provide the trustee "with such information concerning the
relationship between any person or organization and the Plan or
the Employer as the Trustee may reasonably request in order to
determine whether or not such person or organization is a
party-in-interest with respect to the Plan." Although the Plan
document refers to prohibited transactions under ERISA rather
than the Internal Revenue Code (Code) specifically, the Code
provisions at issue were included in ERISA. See H. Conf. Rept.
93-1280, supra at 294, 1974-3 C.B. at 415.
Further, the Plan document provides that the plan
administrator shall make administrative decisions and the trustee
shall make independent investment decisions. Petitioner
requested the independent trustee of the Plan to make a loan from
the pension trust to a corporation in which he had an 18-percent
stock ownership interest. Although petitioner suggested the
transaction to the trustee, the trustee had exclusive discretion
to make investment decisions for the Plan. Petitioner's
recommendations were simply suggestions. Under the Plan
document, the plan administrator's responsibilities were
described as "general administrative duties". This
administration included interpreting the Plan provisions,
(...continued)
from the restrictions otherwise imposed upon
prohibited transactions by ERISA.
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Last modified: May 25, 2011