DOL Finalizes Safe Harbor for Timely Remittance of Participant Contributions to Small Plans


Effective January 14, 2010, the U.S. Department of Labor (DOL) finalized an ERISA regulation establishing an optional safe harbor period during which participant contributions can be remitted, without becoming “plan assets” in the interim, to employee benefit plans with fewer than 100 participants. The regulation is intended to clarify when such contributions have been timely made to the plan, which in turn relieves plan sponsors of the civil legal obligations attached to holding “plan assets” from (i) the payroll date or other date of receipt to (ii) the date of remittance to the plan. The safe harbor is part of DOL’s ongoing campaign to reduce persistent delinquencies in employee contributions to plans.

With the addition of the optional safe harbor and the commentary in the preamble to the final regulation, the participant contribution regulation (which was originally adopted in 1988 and previously amended in 1997) operates as follows...

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:


Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.