Proposed Exemption for AT&T Dallas Prohibited Transactions

The Employee Benefits Security Administration (EBSA) has published a notice of proposed exemption concerning AT&T Dallas and its employee retirement plans. The proposed exemption would grant conditional relief from the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. Specifically, it would permit AT&T Dallas, its affiliates, and certain employee benefit plans to engage in specified transactions, including the sale of certain assets and the acquisition of other assets, provided these transactions meet strict conditions designed to protect plan participants and beneficiaries.

Regulated entities, particularly those involved in employee benefit plans and potential transactions with affiliated entities, should review the proposed exemption carefully. Interested parties are encouraged to submit comments to EBSA regarding the proposed exemption. The comment period deadline is crucial for influencing the final decision. Failure to comply with the conditions of any granted exemption could result in penalties and sanctions under ERISA.