Labor Department Proposes Exemptions for Three Benefit Plans

The US Labor Department is proposing exemptions that would allow a pair of corporate retirement plans and one union to make transactions that would otherwise be prohibited under the Employee Retirement Income Security Act.

The Employee Benefits Security Administration on Tuesday issued a proposal that would permit the retirement plan of Abiomed Inc. to acquire, hold, and receive payments on certain contingent value rights in connection to Johnson & Johnson’s purchase of the company in 2022.

If finalized, the exemption would be effective as of Nov. 15, 2022, which is back-dated to the month of Johnson & Johnson’s offer. As ...