Does anyone have experience with paying legal fees (preparation for litigation and then actual litigation) from defined benefit plan assets, where the plan is party to a lawsuit? Participants' benefits would not be affected (besides being a DB plan, it also happens to be substantially overfunded). I know that there has been recent DOL audit activity in the midwest challenging payment of fees from plan assets, including defined benefit plans.[Edited by mo again on 09-28-2000 at 03:24 PM]

If you are asking this question you probably have a separate need for a lawyer who can answer it. So far, you got the wrong answer. You won't get the right answer from this board because it is a complicated matter and depends on all the circumstances.

You might want to look at DOL Ad Op 77-66, DOL Ad Op 78-29, and Packer Engineering v. Kratville, 965 F.2d 174 (7th Cir. 1992).

Ask for a lawyer, get a lawyer! Thank you both. I will check out the resources Kirk mentions. I realize it is a facts and circumstances issue and am not looking for legal advice here, just anecdotal information. The DOL's position does seem to change over time.