Delinquent contributions to a multiemployer welfare plan

P/OPINION 75-131


                                                          502✓
                                                          504


                         October 6, 1975


Dear           :

I am writing in response to your letter of September 19,
1975 in which you raise questions concerning the effect
on a multi-employer welfare plan of the failure of
certain employers to meet their contribution obligations.

The question of whether, and, if so, to what extent
and under what circumstances, delinquency of employer
contributions may involve a plan or plan fiduciaries in
prohibited extensions of credit, is currently under
consideration within this Department. You may be
familiar with a proposed class exemption for multi-employer
plans published by the Internal Revenue Service and this
Department on June 2, 1975, 40 F.R. 23799. I am enclosing
a copy of that publication for your convenience. The
numerous and varied comments submitted in response to
this proposal are currently under consideration.

With respect to your further questions, we have no doubt
that the Secretary of Labor has enforcement power with
respect to welfare plans. Except as specified in section
502(b) of the Act, no particular form of action or notice
is required to invoke the Secretary's enforcement authority,
and any information brought to the attention of this Department
which suggests a possible violation of the Employee Retirement
Income Security Act of 1974 will be carefully reviewed to
determine whether enforcement activity is warranted.

We trust this information will be of assistance to you.

Sincerely,