Department of Labor (DOL) regulations related to pension plans
are aimed primarily at protecting employees and their retirement
savings. The regulations restrict who can do business with a
pension plan and which types of transactions are allowed.
Prohibited parties (also called parties in interest) include the
employer, the union, plan fiduciaries and service providers, as
well as owners, officers and the relatives of parties in interest.
Prohibited transactions include a sale or lease between the plan
and a party in interest, loans of money between the plan and a
party in interest, and the furnishing of goods or services between
the plan and a party in interest.
The DOL continues to audit pension plans and can impose civil
penalties (including excise taxes payable to the IRS) on prohibited
transactions related to late remittance of employee contributions
to retirement plans. Through its regulations, the DOL defines not
only plan assets but also when contributions are
