In Advisory Opinion 2013-03A (July 3, 2013), the Department of Labor opined that revenue sharing and similar amounts carried on the books of a retirement plan service provider as a credit due the plan, if properly structured, are not ERISA “plan assets” prior to receipt by the plan.
- It has become relatively common for retirement plan platform and certain other service providers that receive revenue sharing and similar amounts from plan investments to credit the plan some or all of those amounts, to be used for permissible plan purposes.
- Upon receipt by the plan, these amounts become ERISA “plan assets” subject to the “held in trust” and other applicable requirements of that statute.
- A question had arisen, however, whether these amounts, when received by the service provider and recorded on its books as a credit due the plan, become “plan assets” even before they are actually transferred to the plan.
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