ERISA 25% Plan-Asset Rule

Regulation · CC-BY-4.0

DOL regulation under ERISA defining when an investment fund's assets are deemed 'plan assets' subject to ERISA fiduciary duties. Hedge funds with 25%+ benefit-plan investor ownership in any class become plan-asset funds and the manager an ERISA fiduciary, drastically expanding compliance burden.

Details

• aliases: Plan Assets Regulation, DOL 29 CFR 2510.3-101
• jurisdiction: US
• regulator: DOL
• kind: regulation
• effective date: 1986-11-13
• summary: DOL regulation under ERISA defining when an investment fund's assets are deemed 'plan assets' subject to ERISA fiduciary duties. Hedge funds with 25%+ benefit-plan investor ownership in any class become plan-asset funds and the manager an ERISA fiduciary, drastically expanding compliance burden.
• scope: Pooled investment vehicles whose investors include 'benefit plan investors' (ERISA plans, IRAs, certain other plans).
• applies to: pooled investment vehicles with benefit-plan investors
• related terms: benefit-plan-investor, fiduciary-duty, prohibited-transaction
• official text url: https://www.ecfr.gov/current/title-29/section-2510.3-101
• history: Originally adopted 1986; amended by the Pension Protection Act of 2006 to add the 25% per-class methodology.