Advisory Opinion on Plan Termination Expenses

This document is about an advisory opinion from the U.S. Department of Labor on the application of ERISA to the payment of certain plan termination expenses by tax-qualified retirement plans administered by the Insurance Commissioner of the state of California in its capacity as liquidator of insolvent insurance companies. The opinion addresses the permissibility of such payments under ERISA's provisions regarding the exclusive benefit rule and the prohibition on prohibited transactions.