[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2580.412-33]

[Page 568-569]
 
                             TITLE 29--LABOR
 
CHAPTER XXV--PENSION AND WELFARE BENEFITS ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580--TEMPORARY BONDING RULES--Table of Contents
 
Subpart G--Prohibition Against Bonding by Parties Interested in the Plan
 
Sec. 2580.412-33  Introductory statement.

    Source: 28 FR 14412, Dec. 27, 1963, unless otherwise noted. 
Redesignated at 50 FR 26706, June 28, 1985.


    (a) This part discusses the meaning and scope of section 13(c) of 
the Welfare and Pension Plans Disclosure Act of 1958 (76 Stat. 39, 29 
U.S.C. 308d(c)) (hereinafter referred to as the Act). This provision 
makes it unlawful ``for any person to procure any bond [required by the 
Act] from any surety or other company or through any agent or broker in 
whose business operations such plan or any party in interest in such 
plan has any significant control or financial interest, direct or 
indirect.'' Because the prohibition contained in this provision is 
broadly stated, it becomes a matter of importance to determine more 
specifically the types of arrangements intended to be prohibited.
    (b) The provisions of section 13 of the Act, including 13(c) are 
subject to the general investigatory authority of the Director, Office 
of Labor-Management and Welfare-Pension Reports, embodied in section 9 
of the Act. The correctness of an interpretation of these provisions can 
be determined finally and authoritatively only by the courts. It is 
necessary, however, for the Labor-Management Services Administrator to 
reach

[[Page 569]]

informed conclusions as to the meaning of the law to enable him to carry 
out his statutory duties of administration and enforcement. The 
interpretations of the Labor-Management Services Administrator contained 
in this part, which are issued upon the advice of the Solicitor of 
Labor, indicate the construction of the law which will guide the Labor-
Management Services Administrator in performing his duties unless and 
until he is directed otherwise by authoritative ruling of the courts or 
unless and until he subsequently decides that his prior interpretation 
is incorrect. Under section 12 of the Act, the interpretations contained 
in this part, if relied upon in good faith, will constitute a defense in 
any action or proceeding based on any Act or omission in alleged 
violation of section 13(c) of the Act. The omission, however to discuss 
a particular problem in this part, or in interpretations supplementing 
it, should not be taken to indicate the adoption of any position by the 
Labor-Management Services Administrator with respect to such problem or 
to constitute an administrative interpretation or practice. 
Interpretations of the Labor-Management Services Administrator with 
respect to 13(c) are set forth in this part to provide those affected by 
the provisions of the Act with ``a practical guide * * * as to how the 
office representing the public interest in its enforcement will seek to 
apply it'' (Skidmore v. Swift & Co., 323 U.S. 134, 138).
    (c) To the extent that prior opinions and interpretations relating 
to 13(c) are inconsistent with the principles stated in this part, they 
are hereby rescinded and withdrawn.