Plan Asset Regulation and the Look-Through Rule under ERISA

Summary

This practice note discusses an important regulation issued by the U.S. Department of Labor (DOL) defining the term "plan assets" in specific situations (Plan Asset Regulation). See 29 C.F.R. § 2510.3-101. The purpose of the Plan Asset Regulation is to impose fiduciary obligations under the Employee Retirement Income Security Act of 1974 (ERISA) in situations where an ERISA benefit plan investor (plan), although nominally investing its assets in a separate entity, is, as a practical matter, retaining the persons who manage the separate entity to provide investment management services to the plan.