Benefits Industry Balks at Exemption Changes Sought by DOL

Retirement plan sponsors and others are mobilizing against sweeping changes the U.S. Labor Department has proposed to how companies apply for and receive individual exemptions from laws governing banned transactions.

At issue are modifications the department’s Employee Benefits Security Administration wants to make to the way it processes legal exemption requests. EBSA is responsible for protecting pension, health, and other benefits for more than 150 million participants and beneficiaries in private-sector employee benefit plans that can be abused by employers or be the subject of fraud.

Critics say the proposed rule flips the long-time script used to design cost-efficient plans ...