-23-
Further, the DOL and the IRS have differing roles in the
area of prohibited transactions. The DOL's primary function is
to protect the rights of workers, while the IRS' primary function
is to protect the revenue. Winger's Dept. Store, Inc. v.
Commissioner, 82 T.C. 869, 888 (1984); see H. Conf. Rept. 93-
1280, supra at 306, 1974-3 C.B. at 467. Under the labor
provisions, a fiduciary is personally liable to the plan for
losses attributable to a breach of fiduciary duty, as well as
restoring any profits made on the transaction.13 On the other
13 The legislative history of ERISA reflects the
congressional understanding that the perspectives of the DOL and
IRS are different:
The conference substitute establishes rules governing
the conduct of plan fiduciaries under the labor laws
(title I) and also establishes rules governing the
conduct of disqualified persons (who are generally the
same people as "parties in interest" under the labor
provisions) with respect to the plan under the tax laws
(title II). This division corresponds to the basic
difference in focus of the two departments. The labor
law provisions apply rules and remedies similar to
those under traditional trust law to govern the conduct
of fiduciaries. The tax law provisions apply an excise
tax on disqualified persons who violate the new
prohibited transaction rules; this is similar to the
approach taken under the present rules against self-
dealing that apply to private foundations.
The labor provisions deal with the structure of
plan administration, provide general standards of
conduct for fiduciaries, and make certain specific
transactions "prohibited transactions" which plan
fiduciaries are not to engage in. The tax provisions
include only the prohibited transaction rules and apply
only to disqualified person, not fiduciaries * * *. To
the maximum extent possible, the prohibited transaction
rules are identical in the labor and tax provisions, so
they will apply in the same manner to the same
(continued...)
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