Advisory Opinions

Requests for interpretations and other rulings under Title 1 of ERISA are handled by the Office of Regulations and Interpretations under the provisions established by ERISA Procedure 76-1.  The office answers inquiries from individuals and organizations in the form of advisory opinions, which apply the law to a specific set of facts, or information letters, which merely call attention to well established principles or interpretations.

Data Dictionary

1983
AO/ Date/ Reference Recipient Description of Request
08/24/1983
406(b)(1)
406(b)(2)
406(b)(3)
408(b)(2)

Mr. Douglas O. Kant
Assistant Counsel
John Hancock Mutual Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, MA 02117

Whether the decision by Plan trustees to select an investment vehicle knowing that such selection would result in the retention of John Hancock Venture Capital Management, Inc. (the Manager), a party in interest, to provide investment and managerial services and the receipt of a management fee by the Manager from John Hancock Mutual Life Insurance Company (John Hancock), the sponsoring employer of the Plan violates section 406(b).

08/23/1983
3(1)
3(16)
3(4)
3(5)

Mr. Robert J. Tanguay
Group Benefits Consultant
The Wyatt Company
Suite 210
10689 North Kendall Drive
Miami, Florida 33176

Whether the Collective Bargaining Agreement Clinic Plan and the Collective Bargaining Agreement Blue Cross Plan covering employees working under a collective bargaining agreement between the Bacardi Corporation, San Juan, Puerto Rico and the Congress of Industrial Unions of Puerto Rico are employee welfare benefit plans within the meaning of section 3(1) of title I of ERISA, and clarification of the term “administrator” within the meaning of ERISA section 3(16) as applied thereto.

08/17/1983
3(1)
3(2)

Mr. David T. Mitzner
Holme Roberts & Owen
1700 Broadway
Denver, Colorado 80290

Whether the Production Participation Plan of Cibola Energy Corporation which makes yearly payments to individuals from the income from the royalties on certain oil and gas leases is not covered under title I of ERISA.

08/17/1983
3(1)
3(16)
3(4)
3(5)
412

Ms. Jane S. Kimball
Stryker, Tams & Dill
33 Washington Street
Newark, New Jersey 07102

Whether the New Jersey Society of Certified Public Accountants (NJSCPA) Insurance Trust constitutes an "employee welfare benefit plan" subject to title I of ERISA, and (2) if not, whether an "accounting organization Subscriber" which constitutes an employer within the meaning of section 3(5) of ERISA and whose employees are covered by the NJSCPA Insurance Trust will be considered to be maintaining an employee welfare benefit plan by participating in the NJSCPA Insurance Trust, and whether the Trustees of the NJSCPA are subject to the bonding requirements of section 412 of ERISA or the reporting and disclosure requirements of part 1 of ERISA in the event such an "accounting organization Subscriber" participates in the NJSCPA Insurance Trust.

09/11/1983
103

Mr. Daniel J. McCarthy
Milliman & Robertson, Inc.
Two Pennsylvania Plaza
New York, NY 10001

Whether certain procedures for the reporting and valuing of assets deposited with an insurance company in a Guaranteed Investment Contract (GIC) under which both principal and interest would be guaranteed and the accumulated fund payable in a lump sum at the end of a stated period are in accordance with existing reporting requirements of ERISA.

07/29/1983
514

Marvin Rosen, Director
Bureau of Abandoned Property
Office of the State Comptroller
State of New York
270 Broadway
New York, New York 10007

Whether section 1316 of the New York Abandoned Property Law (related to unclaimed insurance proceeds other than life insurance) is preempted under section 514 of title I of ERISA.

07/22/1983
406(a)(1)(D), 406(b)(1)
406(b)(2)

Lawrence J. Hass
Groom and Nordberg
Suite 450
1775 Pennsylvania Avenue, N.W.
Washington, D.C. 20006

Whether the transfer of seed money from Lincoln National Pension Insurance Company's separate accounts to its general account will not, solely by reason of such transfer, be deemed to involve a violation of any of the prohibited transaction restrictions of ERISA, particularly sections 406(a)(1)(A) and (D) and sections 406(b)(1) and (2).

07/18/1983
3(1)

Mr. Earl B. Pulse
Assistant General Counsel
Cummins Engine Company, Inc.
Box 3005
Columbus, Indiana 47201

Whether the Salary Continuance Plan (the Program) of Cummins Engine Company (the Company) constitutes a mere payroll practice within the meaning of regulation 29 C.F.R. §2510.3-1(b)(2) and is thus excluded from title I of ERISA.

07/05/1983
3(1)
3(32)
3(4)
3(40)

Mr. Robert C. Kelly
Kelly, Haus and Katz
302 East Washington Avenue
Suite 202
Madison, Wisconsin 53703

Whether the Wisconsin Association Insurance Trust is an employee welfare benefit plan covered by title I of ERISA.

06/27/1983
3(1)

Mr. Jeffrey G. Whitman
William M. Mercer, Incorporated
P.O. Box 76851
Los Angeles, California 90076-0851

Whether the Weiser Lock Division of Norris Industries Employee Assistance Program (the Assistance Program) is an employee welfare benefit plan within the meaning of section 3(1) of ERISA.