Procedures for Cooperation Between the Federal Financial
Institution Regulatory Agencies and the Department of Labor in the
Enforcement of the Employee Retirement Income Security Act of 1974
The Board of Governors of the Federal Reserve System,
Federal Deposit Insurance Corporation, National Credit Union Administration,
Office of the Comptroller of the Currency and Office of Thrift Supervision
(the federal financial institution regulatory agencies) as part of
their supervision of the institutions regulated by them, conduct
examinations and perform other functions which occasionally disclose
possible violations of the Employee Retirement Income Security Act
of 1974 (ERISA). The Department of Labor (DOL) is charged with the
administration, interpretation and enforcement of standards of conduct
and responsibility of fiduciaries of employee benefit plans under
Section 3004(b) of ERISA provides that the Secretary
of Labor may utilize the facilities or services of any department,
agency, or establishment of the United States, with the lawful consent
of such department, agency, or establishment, and each department,
agency or establishment of the United States is authorized and directed
to cooperate with the Secretary of Labor and, to the extent permitted
by law, to provide such information and facilities as the Secretary
may request for his assistance in the performance of his functions
under ERISA. This agreement is executed pursuant to that authority.
1. To the maximum extent consistent with law and dependent
upon the availability of resources, the federal financial institution
regulatory agencies shall provide written notification to the DOL
of possible violations of ERISA of a significant nature, which are
discovered in the course of their supervision of institutions subject
to their respective jurisdiction.
2. A possible violation shall be considered significant
when, in the view of the appropriate federal financial institution
regulatory agency, it falls within the following circumstances:
a. Where the financial institution does not serve
as plan administrator or plan sponsor, as those terms are defined
in ERISA Section 3(16), possible violations of:
(1) Title I, Part 4, Section 404, relating to fiduciary
duties (including transactions directed by named fiduciaries or qualified
investment managers), except where the transaction amounts, individually
or in combination with other questionable transactions, constitute
less than $100,000;
(2) Title I, Part 4 Section 405, relating to liability
for breach of co-fiduciary duties (including transactions directed
by named fiduciaries or qualified investment managers), except where
the transaction amounts, individually or in combination with other
questionable transactions, constitute less than $100,000;
(3) Title I, Part 4, Sections 406 and 407(a), relating
to prohibited transactions, except where the threat of loss to the
plan participants is de minimis;
(4) Title I, Part 4, Section 411, relating to prohibition
against certain persons holding certain positions;
(5) Title I, Part 4, Section 412, relating to the
bonding requirements as applicable to the financial institution itself.
b. Where the financial institution, in respect to
a plan, also serves as plan administrator or plan sponsor, the agencies
shall provide written notification of possible violations of the
ERISA sections enumerated in a. above and, in addition, shall provide
written notification of possible violations of Title I, Part 1, of
ERISA relating to reporting and disclosure.
3. The written notification to the DOL shall include
a. The name of the financial institution.
b. The name of the plan.
c. A brief description of the nature of the possible
violation, and any corrective action requested by the federal financial
institution regulatory agency and/or initiated by the federal financial
institution regulatory agency.
4. The DOL agrees that any information received from
the federal financial institution regulatory agencies pursuant to
this agreement shall, to the extent permissible by law, be held in
strict confidence and may be used for investigative purposes only;
and that no other use of such information shall be made without the
express written authorization of the agency that supplied such information.
5. The written notification shall be sent to the Director
of Enforcement, Employee Benefits Security Administration, U.S. Department
of Labor, Washington, D.C. 20210.