Flahertys Arden Bowl, Inc. - Page 13




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               C.  Regulations                                                        
               As pointed out above, Congress intended a bifurcated                   
          enforcement of ERISA.  President Carter issued Reorganization               
          Plan No. 4 of 1978 (the 1978 Plan), 3 C.F.R. 332 (1979), 92 Stat.           
          3790.  The 1978 Plan allocates the responsibility of                        
          administering the provisions of ERISA between the Secretary of              
          the Treasury and the Secretary of Labor.  Section 102 of the 1978           
          Plan gives the Secretary of Labor authority with respect to                 
               regulations, rulings, opinions, and exemptions under section           
               4975 * * *                                                             
                    EXCEPT for (i) subsections 4975(a), (b), (c)(3), * * *            
               (e)(1), and (e)(7) of the Code; (ii) to the extent necessary           
               for the continued enforcement of subsections 4975(a) and (b)           
               * * *; and (iii) exemptions with respect to transactions               
               that are exempted by subsection 404(c) of ERISA from the               
               provisions of part 4 of Subtitle B of Title I of ERISA * * *           
          Section 102 of the 1978 Plan also provides that the Secretary of            
          the Treasury shall still have responsibility to audit qualified             
          retirement plans and to enforce the section 4975 excise tax as              
          provided in section 105 of the 1978 Plan.  Section 105 of the               
          1978 Plan binds the Secretary of Treasury to the “regulations,              
          rulings, opinions, and exemptions issued by the Secretary of                
          Labor”.                                                                     
               In October of 1992 the Department of Labor issued final                
          regulations that provide:                                                   
               Prohibited Transactions.  The relief provided by section               
               404(c) of the Act and this section applies only to the                 
               provisions of part 4 of title I of the Act.  Therefore,                
               nothing in this section relieves a disqualified person from            





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