[Federal Register Volume 59, Number 205 (Tuesday, October 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26404]
[[Page Unknown]]
[Federal Register: October 25, 1994]
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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 94-75; Exemption Application No. D-
9722]
Grant of Individual Exemptions; Raytech Corporation Salaried
Employees Savings Plan
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.
Raytech Corporation Salaried Employees Savings Plan (the Salaried
Plan) and Raytech Corporation Hourly Employee Savings Plan (the Hourly
Plan; together, the Plans); Located in Shelton, Connecticut;
[Prohibited Transaction Exemption 94-75; Exemption Application Nos. D-
9722 and D-9723]
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 (1) the extension of credit by Raytech Corporation
(Raytech) to the Plans in the form of payments (the Makeup Payments)
with respect to group annuity contract CG01274B3A (the GIC) issued by
Executive Life Insurance Company (ELIC); and (2) the Plans' potential
repayment of the Makeup Payments (the Repayments), provided: (a) all
terms of such transactions are no less favorable to the Plans than
those which the Plans could obtain in arm's-length transactions with an
unrelated party; (b) no interest and/or expenses are paid by the Plans;
(c) the Makeup Payments are made only in lieu of payments due from ELIC
with respect to the accumulated book value of the GIC at the time of
the Makeup Payments; (d) the Repayments are restricted to the amounts,
if any, paid to the Plans after March 27, 1994, by ELIC or other
responsible third parties with respect to the GIC (the GIC Proceeds);
(e) the Repayments do not exceed the total amount of the Makeup
Payments; and (f) the Repayments are waived to the extent the Makeup
Payments exceed the GIC Proceeds.
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 July 27, 1994, at 59 FR
38207.
Notice to Interested Persons: The applicant represents that it was
unable to comply with the notice to interested persons requirement
within the time frame stated in its application. However, the applicant
has represented that it notified all interested persons, in the manner
agreed upon between the applicant and the Department, by September 13,
1994. Interested persons were notified that they had until October 16,
1994 to comment or request a hearing with respect to the proposed
exemption. No comments or hearing requests were received by the
Department.
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 exemption 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 accurately describes all material terms of the transaction
which is the subject of the exemption.
Signed at Washington, D.C., this 20th day of October, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration.
[FR Doc. 94-26404 Filed 10-24-94; 8:45 am]
BILLING CODE 4510-29-P
