Securities Lending and 457 Plan Assets

[Guest ircreader]

Does anyone know if a 457 plan can lend securities? Can you refer me to any information on this subject?

[mbozek]

In a non profit 457 plan the investments are general assets of the employer so any use of the assets would be subject to the non profit's by laws, charter and IRS rules relating to unrelated business income tax. In a govt plan a trust is required but the use of the plan assets for lending will be subject to state laws for pension plans since govt plans are not subject to ERISA.