Pensions, Suit Against Fiduciary, Transactions with Parties in Interest, Exemptions, Pleading, 5, 4
ERISA (29 USC 1106) generally prohibits pension plan trustees from causing the plan to engage in an arrangement for the furnishing of goods, services, or facilities to the plan by a party in interest. However, 29 USC 1108 exempts from that prohibition reasonable contractual arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the plan, if no more than reasonable compensation is paid therefor. This decision holds that a plaintiff suing under 1106 need only allege the elements of that section and need not negate the 1108 exemption. Instead, the exemption may provide the basis for an affirmative defense by the defendant pension plan fiduciaries. In general, plaintiffs don’t have to negate exemptions from statutory prohibitions; rather, the defendant bears the burden of pleading and proof on the exemption issue.