94-1044. Grant of Individual Exemptions; Ackman, Marek, Boyd & Simutis Profit Sharing Plan, et al.  

  • [Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-1044]
    
    
    [[Page Unknown]]
    
    [Federal Register: January 18, 1994]
    
    
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    DEPARTMENT OF LABOR
    
    Pension and Welfare Benefits Administration
    [Prohibited Transaction Exemption 94-4; Exemption Application No. D-
    9439, et al.]
    
     
    
    Grant of Individual Exemptions; Ackman, Marek, Boyd & Simutis 
    Profit Sharing Plan, et al.
    
    AGENCY: Pension and Welfare Benefits Administration, Labor.
    
    ACTION: Grant of Individual Exemptions.
    
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    SUMMARY: This document contains exemptions issued by the Department of 
    Labor (the Department) from certain of the prohibited transaction 
    restrictions of the Employee Retirement Income Security Act of 1974 
    (the Act) and/or the Internal Revenue Code of 1986 (the Code).
        Notices were published in the Federal Register of the pendency 
    before the Department of proposals to grant such exemptions. The 
    notices set forth a summary of facts and representations contained in 
    each application for exemption and referred interested persons to the 
    respective applications for a complete statement of the facts and 
    representations. The applications have been available for public 
    inspection at the Department in Washington, DC. The notices also 
    invited interested persons to submit comments on the requested 
    exemptions to the Department. In addition the notices stated that any 
    interested person might submit a written request that a public hearing 
    be held (where appropriate). The applicants have represented that they 
    have complied with the requirements of the notification to interested 
    persons. No public comments and no requests for a hearing, unless 
    otherwise stated, were received by the Department.
        The notices of proposed exemption were issued and the exemptions 
    are being granted solely by the Department because, effective December 
    31, 1978, section 102 of Reorganization Plan No. 4 of 1978 (43 FR 
    47713, October 17, 1978) transferred the authority of the Secretary of 
    the Treasury to issue exemptions of the type proposed to the Secretary 
    of Labor.
    
    Statutory Findings
    
        In accordance with section 408(a) of the Act and/or section 
    4975(c)(2) of the Code and the procedures set forth in 29 CFR part 
    2570, subpart B (55 FR 32836, 32847, August 10, 1990) and based upon 
    the entire record, the Department makes the following findings:
        (a) The exemptions are administratively feasible;
        (b) They are in the interests of the plans and their participants 
    and beneficiaries; and
        (c) They are protective of the rights of the participants and 
    beneficiaries of the plans.
    
    Ackman, Marek, Boyd & Simutis Profit Sharing Plan (the Plan) Located in 
    Kankakee, Illinois
    
    [Prohibited Transaction Exemption 94-4; Exemption Application No. D-
    9439]
    
    Exemption
    
        The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the 
    Act and the sanctions resulting from the application of section 4975 of 
    the Code, by reason of section 4975(c)(1)(A) through (E) of the Code, 
    shall not apply to the proposed cash sale by two individually directed 
    accounts in the Plan (the Accounts) of J. Dennis Marek (Mr. Marek) and 
    Mr. Boyd of 7.68 acres of unimproved land (the Parcel) to Mr. Marek, a 
    party in interest with respect to the Plan; provided that the following 
    conditions are satisfied:
        (a) The proposed sale will be a one-time cash transaction;
        (b) The Plan and the Accounts will incur no expenses as a result of 
    the transaction; and
        (c) As a result of this transaction, the Accounts will receive the 
    greater of: (1) 1/2 each of the original acquisition cost of the Parcel 
    plus any proportionate holding costs; or (2) 1/2 each of the fair 
    market value of the Parcel as determined by a qualified independent 
    appraiser at the time the transaction is consummated.
        For a more complete statement of the facts and representations 
    supporting the Department's decision to grant this exemption refer to 
    the notice of proposed exemption published on December 3, 1993 at 58 FR 
    64011/64012.
    
    FOR FURTHER INFORMATION CONTACT: Ekaterina A. Uzlyan, telephone (202) 
    219-8883. (This is not a toll-free number).
    
    David Rothman, M.D. Employee's Pension Plan and David Rothman, M.D. 
    Employee's Profit Sharing Plan (Collectively, the Plans) Located in 
    Miami, Florida
    
    [Prohibited Transaction Exemption 94-5; Exemption Application Nos. D-
    9575 and D-9576]
    
    Exemption
    
        The restrictions of sections 406(a) and 406(b)(1) and (b)(2) of the 
    Act and the sanctions resulting from the application of section 4975 of 
    the Code, by reason of section 4975(c)(1)(A) through (E) of the Code, 
    shall not apply to the cash sale (the Sale) of certain real property 
    (the Property) by the individual accounts of David Rothman, M.D. (Dr. 
    Rothman) in the Plans to Dr. Rothman, a party in interest with respect 
    to the Plans, provided that the consideration paid for the Property is 
    no less than the fair market value of the Property on the date of the 
    Sale as determined by a qualified, independent appraiser.
        For a more complete statement of the facts and representations 
    supporting the Department's decision to grant this exemption refer to 
    the notice of proposed exemption published on December 10, 1993, at 58 
    FR 64985.
    
    FOR FURTHER INFORMATION CONTACT: Mr. C. E. Beaver of the Department, 
    telephone (202) 219-8881. (This is not a toll-free number.)
    
    Stanley Picheny IRA, Arthur Millman IRA, William Millman IRA, and 
    Bernard Blum IRA (Collectively, the IRAs) Located in New York, New York
    
    [Prohibited Transaction Exemption 94-6; Exemption Application Nos. D-
    9554 thru D-9557]
    
    Exemption
    
        The sanctions resulting from the application of section 4975 of the 
    Code, by reason of section 4975(c)(1) (A) through (E) of the Code, 
    shall not apply to the cash redemption by Homemaker, Industries, Inc. 
    of its issued and outstanding shares of common stock (the Shares) held 
    by the IRAs; provided that (1) the fair market value of the Shares is 
    received by the IRAs, as determined on the date of the redemption by a 
    qualified, independent appraiser, and (2) the IRAs do not incur any 
    expenses in connection with the proposed redemption.
        For a more complete statement of the facts and representations 
    supporting the Department's decision to grant this exemption refer to 
    the notice of proposed exemption published on December 3, 1993, at 58 
    FR 64016.
    
    FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department, 
    telephone (202) 219-8881. (This is not a toll-free number.)
    
    Profit Sharing Plan of A.H. Williams & Co., Inc. (the Plan) Located in 
    Philadelphia, Pennsylvania
    
    [Prohibited Transaction Exemption 94-7; Exemption Application No. D-
    9518]
    
    Exemption
    
        The restrictions of sections 406(a), 406 (b)(1) and (b)(2) of the 
    Act and the sanctions resulting from the application of section 4975 of 
    the Code, by reason of section 4975(c)(1) (A) through (E) of the Code, 
    shall not apply to the May 25, 1993 sale to the individually-directed 
    accounts (the Accounts) of six participants in the Plan by A.H. 
    Williams & Co., Inc. (Williams) of certain bonds issued by the 
    Montgomery County Industrial Development Authority, provided the 
    following conditions have been satisfied: (a) The bonds represented no 
    more than 25% of the assets of any of the Accounts at the time of their 
    acquisition; (b) Williams did not receive any fees or commissions in 
    connection with the sale of the bonds to the Accounts; and (c) the 
    purchase of the bonds by the Accounts was on terms at least as 
    favorable to the Accounts as otherwise made available by Williams to 
    unrelated purchasers.
        For a more complete statement of the facts and representations 
    supporting the Department's decision to grant this exemption, refer to 
    the notice of proposed exemption published on November 10, 1993 at 58 
    FR 59739.
    
    EFFECTIVE DATE: This exemption is effective May 25, 1993.
    
    FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department, 
    telephone (202) 219-8881. (This is not a toll-free number.)
    
    General Information
    
        The attention of interested persons is directed to the following:
        (1) The fact that a transaction is the subject of an exemption 
    under section 408(a) of the Act and/or section 4975(c)(2) of the Code 
    does not relieve a fiduciary or other party in interest or disqualified 
    person from certain other provisions to which the exemptions does not 
    apply and the general fiduciary responsibility provisions of section 
    404 of the Act, which among other things require a fiduciary to 
    discharge his duties respecting the plan solely in the interest of the 
    participants and beneficiaries of the plan and in a prudent fashion in 
    accordance with section 404(a)(1)(B) of the Act; nor does it affect the 
    requirement of section 401(a) of the Code that the plan must operate 
    for the exclusive benefit of the employees of the employer maintaining 
    the plan and their beneficiaries;
        (2) These exemptions are supplemental to and not in derogation of, 
    any other provisions of the Act     and/or the Code, including 
    statutory or administrative exemptions and transactional rules. 
    Furthermore, the fact that a transaction is subject to an 
    administrative or statutory exemption is not dispositive of whether the 
    transaction is in fact a prohibited transaction; and
        (3) The availability of these exemptions is subject to the express 
    condition that the material facts and representations contained in each 
    application are true and complete and accurately describe all material 
    terms of the transaction which is the subject of the exemption. In the 
    case of continuing exemption transactions, if any of the material facts 
    or representations described in the application change after the 
    exemption is granted, the exemption will cease to apply as of the date 
    of such change. In the event of any such change, application for a new 
    exemption may be made to the Department.
    
        Signed at Washington, DC, this 11th day of January 1994.
    Ivan Strasfeld,
    Director of Exemption Determinations, Pension and Welfare Benefits 
    Administration, U.S. Department of Labor.
    [FR Doc. 94-1044 Filed 1-14-94; 8:45 am]
    BILLING CODE 4510-29-P
    
    
    

Document Information

Effective Date:
5/25/1993
Published:
01/18/1994
Department:
Pension and Welfare Benefits Administration
Entry Type:
Uncategorized Document
Action:
Grant of Individual Exemptions.
Document Number:
94-1044
Dates:
This exemption is effective May 25, 1993.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: January 18, 1994, Prohibited Transaction Exemption 94-4, Exemption Application No. D- 9439, et al.