AT&T Files SCOTUS Bid Over 401(k) Prohibited Transaction Rules

AT&T Services Inc. became the latest to ask the US Supreme Court to review ERISA’s prohibited transaction rules, which it says shouldn’t encompass routine contracts between benefit plans and their service providers.

There’s “disarray from coast to coast” over whether the Employee Retirement Income Security Act’s prohibited transaction rules are broad enough to cover the routine, arm’s-length service contracts that are “ubiquitous” in the retirement plan industry, AT&T said in an April 5 petition for high court review. These rules, which are aimed at putting guardrails on transactions between benefit plans and interested parties, apply only to arrangements that “pose ...