[Federal Register Volume 62, Number 192 (Friday, October 3, 1997)]
[Notices]
[Pages 51911-51912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26289]
[[Page 51911]]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 97-53; Exemption Application No. D-
10261, et al.]
Grant of Individual Exemptions; McCroskey, Feldman, Cochrane &
Brock, P.C.
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, D.C. 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.
McCroskey, Feldman, Cochrane & Brock, P.C. Profit Sharing Plan and
Trust (the Plan), Located in Muskegon, Michigan
[Prohibited Transaction Exemption 97-53; Exemption Application No. D-
10261]
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 cash sale (the Sale) by the Plan of certain
improved real property located at 1440 and 1442 Peck Street in
Muskegon, Michigan (the Muskegon Property) to the McCroskey Development
Partnership (the Partnership), a party in interest with respect to the
Plan; provided that the following conditions are satisfied:
(A) All terms and conditions of the Sale are no less favorable to
the Plan than those which the Plan could obtain in an arm's-length
transaction with an unrelated party;
(B) The Sale is a one-time transaction for cash in which the Plan
incurs no expenses;
(C) The Plan receives a purchase price for the Muskegon Property
which is no less than the greater of (1) the fair market value of the
Muskegon Property established at the time of the sale by an independent
qualified appraiser, or (2) $350,000;
(D) Within sixty days of the publication in the Federal Register of
this notice granting the exemption, McCroskey, Feldman, Cochran &
Brock, P.C. (the Employer) files Form 5330 with the Internal Revenue
Service and pays the applicable excise taxes which are due with respect
to the continuation of a lease of the Muskegon Property by the Plan to
the Employer after September 27, 1989; and
(E) Within sixty days of the publication in the Federal Register of
this notice granting the exemption, the Employer's payment of rent to
the Plan for the Muskegon Property from September 27, 1989 through the
date of the Partnership's purchase of the Property from the Plan is
reviewed by an independent fiduciary to determine whether such rent was
at all times no less than the fair market rental value of the Muskegon
Property, and, to the extent such rent is determined to have been less
than the fair market rental value, the Employer pays the Plan the
amount of such deficiency together with interest thereon at a rate
determined by the independent fiduciary to be appropriate to compensate
the Plan for lost income on such deficiency amount.
For a more complete statement of the facts and representations
supporting this exemption, refer to the notice of proposed exemption
published on August 1, 1997 at 62 FR 41431.
FOR FURTHER INFORMATION CONTACT: Mr. Ronald Willett of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Alloy Die Casting Co. Employees' Profit Sharing Plan and Trust (the
Plan), Located in Anaheim, California
[Prohibited Transaction 97-54; Exemption Application No. D-10439]
Exemption
The restrictions of section 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 cash sale by the Plan to the Alloy Die Casting
Co./W.E. Holmes, Inc. (Alloy), the Plan sponsor and a party in interest
with respect to the Plan, of units (the Units) in the Krupp Insured
Plus-II Limited Partnership, provided: (a) The sale is a one-time
transaction for cash; (b) no commissions or other expenses are paid by
the Plan in connection with the sale; (c) the Plan will receive $1.15
above the highest bid price for the Units at the most recent sealed bid
auction for the Units which has occurred prior to the time of the sale;
and (d) Alloy will purchase the Units from the Plan within 10 calendar
days following the granting of this exemption.
For a more complete statement of the facts and representations
supporting the Department's decision to grant this exemption, refer to
the notices of proposed exemption published on June 23, 1997 at 62 FR
33924 and on August 8, 1997 at 62 FR 42837.
FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Bloom Consulting Corporation Profit Sharing Plan (the Plan), Located in
Tiburon, California
[Prohibited Transaction Exemption 97-55; Exemption Application No. D-
10440]
Exemption
The application of section 4975 of the Code, by reason of sections
4975(c)(1) (A) through (E) of the Code shall not
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apply to the proposed purchase by the Plan of shares of common stock of
Valley Forge Corporation (the Stock) from the Martin Bloom Family
Trust, a disqualified person with respect the Plan provided that the
following conditions are satisfied: (1) The purchase of the Stock will
be a one-time transaction for cash; (2) the Plan will purchase the
Stock at a price no greater than the fair market value of the Stock as
reported on the American Stock Exchange (AMEX) on the date of the
purchase; (3) the Plan will not pay any expenses in connection with the
proposed transaction; and (4) the purchase of the Stock shall represent
no more than 25% of the fair market value of the Plan's assets.
For a more complete statement of the facts and representations
supporting this exemption, refer to the notice of proposed exemption,
published on August 8, 1997 at 62 FR 47064.
FOR FURTHER INFORMATION CONTACT: Allison Padams of the Department,
telephone (202) 219-8971. (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 accurately describes all material terms of the transaction
which is the subject of the exemption.
Signed at Washington, D.C., this 30th day of September, 1997.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 97-26289 Filed 10-2-97; 8:45 am]
BILLING CODE 4510-29-M
