[Federal Register Volume 60, Number 194 (Friday, October 6, 1995)]
[Notices]
[Pages 52425-52426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24868]
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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 95-93; Exemption Application No. D-
10026, et al.]
Grant of Individual Exemptions; Acushnet Company Employee
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
[[Page 52426]]
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.
Acushnet Company Employee Savings Plan (the Plan) Located in Fairhaven,
MA
[Prohibited Transaction Exemption 95-93; Exemption Application No. D-
10026]
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 by the Plan of guaranteed
investment contract No. GA-5244 (the GIC) issued by Mutual Life
Insurance Company of New Jersey, to the Acushnet Company, a Delaware
corporation and a party in interest with respect to the Plan, provided
the following conditions are met: (1) The sale is a one-time
transaction for cash; (2) the Plan experiences no loss and incurs no
expense from the sale; (3) the Plan receives as consideration for the
sale the greater of either (a) the fair market value of the GIC on the
date of the sale, or (b) the accumulated book value of the GIC as set
forth in paragraph 3 of the Notice of Proposed Exemption, with such
determination to be made by the State Street Bank and Trust Company,
the Plan fiduciary with respect to the GIC.
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 August 9, 1995 at 60 FR
40620.
FOR FURTHER INFORMATION CONTACT: Charles S. Edelstein of the
Department, telephone (202) 219-8881. (This is not a toll-free number.)
Profit Sharing Plan for Employees of Athens Disposal Co., Ranco
Leasing, Covina Disposal Co., and South Pasadena Disposal Co. (the
Plan) Located in City of Industry, California
[Prohibited Transaction Exemption 95-94; Exemption Application No. D-
10029]
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 on March 24, 1994, for
$300,000 (the Sale) of 7,500 shares (the Shares) of common stock issued
by Garfield Bank, chartered in California and located in Montebello,
California, by the Plan to Athens Disposal Co., Inc., a party in
interest with respect to the Plan; provided that (1) the Plan
experienced no loss nor incurred any expense from the Sale; and (2) the
Plan received as consideration from the Sale an amount that was no less
than the fair market value of the Shares on the date of the Sale.
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 August 11, 1995, at 60 FR
41126.
New Bedford Institution for Savings Employee Stock Ownership Plan (the
Plan) Located in New Bedford, MA
[Prohibited Transaction Exemption 95-95; Exemption Application No. D-
10033]
Exemption
The restrictions of sections 406(a), 406 (b)(1) and (b)(2), and
407(a) 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 past acquisition and holding by
the Plan of certain stock warrants (the Warrants) in connection with a
merger (the Merger) of NBB Bancorp, Inc. (NBB), the parent company of
the Plan's sponsor, New Bedford Institution for Savings, with Fleet
Financial Group, Inc. (Fleet), provided the following conditions were
satisfied: a) the Plan's acquisition and holding of the Warrants
occurred in connection with the Merger pursuant to which (i) all shares
of common stock of NBB (NBB Stock) were converted, at the election of
the shareholder, into cash or shares of common stock of Fleet and (ii)
each shareholder received 0.28 Warrants for each share of NBB Stock; b)
the acquisition and holding of the Warrants resulted from the
independent action of NBB as a corporate entity, and all holders of NBB
Stock, including the Plan, were treated in the same manner with respect
to the Merger; and c) the Warrants were automatically issued to the
Plan, which made no affirmative election to acquire the Warrants.
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 August 9, 1995 at 60 FR
40621.
EFFECTIVE DATE: This exemption is effective January 27, 1995.
FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
EFFECTIVE DATES: The effective date of this exemption is March 24,
1994.
FOR FURTHER INFORMATION CONTACT: Mr. C. E. Beaver 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 accurately describes all material terms of the transaction
which is the subject of the exemption.
Signed at Washington, D.C., this 3rd day of October, 1995.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 95-24868 Filed 10-5-95; 8:45 am]
BILLING CODE 4510-29-P
