DOL Floats Share Sale Exemption for Liberty Latin America 401(k)

The Labor Department released a proposal that would retroactively permit certain Liberty Latin America Ltd. 401(k) plan stock transactions from 2020, affirming they were exempt from federal benefits law restrictions.

The proposed prohibited transaction exemption for the telecommunications company released by the Employee Benefits Security Administration on Tuesday centers on allowing the plan rights to purchase Series C shares in Liberty Latin America as part of an alternative investment option for employee 401(k)s.

Retirement benefit plans rely on exemptions granted by EBSA when transacting with a “party in interest” to the plan under the Employee Retirement Income Security Act. ERISA’s ...