A party-in-interest is defined by the Employee Retirement Income Security Act of 1974 (ERISA) to include the following:
Certain plan transactions with parties-in-interest are prohibited under ERISA. These transactions are:
There are certain exceptions regarding party-in-interest transactions that do not prevent a party-in -interest from receiving reasonable compensation for services to a plan or receiving benefits from a plan as a participant or beneficiary, as long as the benefits are in accordance with the terms of a plan as applied to all other participants and beneficiaries. In addition, payments to parties-in-interest for reasonable compensation for office space and other services necessary for the operation of a plan are permitted.
Understanding these concepts will help your plan create an effective anti-fraud policy and help fiduciaries maintain their proper legal and financial roles.
If you have any questions or concerns about an anti-fraud policy, fill in the form below and our experts will be in touch.