[Federal Register Volume 60, Number 48 (Monday, March 13, 1995)]
[Notices]
[Pages 13455-13456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6117]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 95-20; Exemption Application No. D-
09690, et al.]
Grant of Individual Exemptions; Iron Workers Pension Trust of
Colorado, 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, 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.
Iron Workers Pension Trust of Colorado (The Pension Plan); and Colorado
Iron Workers (Erection) Statewide Joint Apprenticeship and Trust Fund
(the Apprenticeship Plan; together, the Plans) Located in Denver,
Colorado
[Prohibited Transaction Exemption 95-20; Exemption Application Nos. D-
09690 and L-09691]
Exemption
The restrictions of section 406(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 (D) of the Code, shall not apply to
the loan (the Loan) of $141,601.36 by the Pension Plan to the
Apprenticeship Plan, under the terms described in the notice of
proposed exemption, provided the following conditions are satisfied:
(a) The Loan represents less than 25% of the assets of the Pension
Plan; (b) the terms of the Loan are not less favorable to either Plan
than those obtainable in arm's-length transactions with unrelated
parties; (c) the trustees of each Plan approved the Loan as being
appropriate for, and in the best interest of each Plan; (d) no trustee
of either Plan made such determination on behalf of the other Plan; and
(e) the property securing the Loan has been appraised by a qualified,
independent appraiser as having a fair market value in excess of 150%
of the principal amount of the Loan.
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 January 4, 1995 at 60 FR
488.
EFFECTIVE DATE: This exemption is effective August 11, 1992.
WRITTEN COMMENTS: The Department received two written comments with
respect to the proposed exemption. One comment sought further
information [[Page 13456]] about the proposed exemption, which the
Department provided to the commentator by telephone. The other comment
did not address any issues relevant to the proposed exemption. After
consideration of the entire record, the Department has determined to
grant the exemption as proposed.
FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Wadco, Inc. Profit Sharing Plan and Trust (the Plan) Located in Spring,
Texas
[Prohibited Transaction Exemption 95-21; Application No. D-09820]
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 proposed sale (the Sale) of certain shares of stock
(the Stock) by the Plan to Peter Aswad, a disqualified person with
respect to the Plan.\1\
\1\Since Peter Aswad and his wife, Judith Aswad, are the only
participants in the Plan, there is no jurisdiction under Title I of
the Act pursuant to 29 CFR 2510.3-3(b). However, there is
jurisdiction under Title II of the Act pursuant to section 4975 of
the Code.
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This exemption is conditioned upon the following requirements: (1)
All terms and conditions of the Sale are at least as favorable to the
Plan as those obtainable in an arm's length transaction between
unrelated parties; (2) the Sale is a one-time cash transaction; (3) the
Plan is not required to pay any commissions, costs or other expenses in
connection with the Sale; (4) the Plan receives a sales price equal to
the fair market value of the Stock as determined by an independent,
qualified appraiser; (5) the trustees of the Plan determine that the
Sale is appropriate for the Plan and is in the best interests of the
Plan and their participants and beneficiaries; and (6) within ninety
days of the grant of this exemption, Wadco files Forms 5330 with the
Internal Revenue Service and pays all applicable excise taxes due with
respect to past prohibited transactions.
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 January 18, 1995 at 60 FR
3661.
FOR FURTHER INFORMATION CONTACT: Kathryn Parr of the Department,
telephone (202) 219-8971. (This is not a toll-free number.)
Treasure Valley Transplants, Inc. Money Purchase Pension Plan (the
Plan) Located in Boise, Idaho
[Prohibited Transaction Exemption 95-22; Application No. D-09874]
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 sale (the Sale) of certain real property (the
Property) by the Plan to Dr. George Holzer, D.V.M. (Dr. Holzer), a
disqualified person with respect to the Plan;\2\ provided that the
following conditions are satisfied:
\2\Since Dr. Holzer is the sole shareholder of the Employer, and
the only participant in the Plan, there is no jurisdiction under
Title I of the Act, pursuant to 29 CFR 2510.3-3(c)(1). There is,
however, jurisdiction under Title II of the Act pursuant to section
4975 of the Code.
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(1) The Sale is a one-time transaction for cash;
(2) The Plan does not incur any expenses in connection with the
proposed transaction; and
(3) The consideration paid for the Property is no less than the
fair market value of the Property as determined by an 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 January 30, 1995 at 60 FR
5728.
FOR FURTHER INFORMATION CONTACT: Virginia J. Miller of the Department,
telephone (202) 219-8971. (This is not a toll-free number.)
Terry Segal, P.C. Retirement Plans Located in Boston, MA
[Prohibited Transaction Exemption 95-23; Exemption Application No. D-
09891]
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) shall not
apply to the proposed purchase by Terry and Harriet Segal of an
interest (the Interest) in a limited partnership from Mr. Segal's
individually-directed account (the Account) in the Terry Segal, P.C.
Pension Plan (the Pension Plan), provided: (1) The purchase is a one-
time transaction for cash; (2) the Pension Plan Account is not required
to pay any fees or commissions in connection therewith; (3) the
Interest is appraised by a qualified, independent appraiser; and (4)
the Pension Plan Account receives an amount which reflects the fair
market value of the Interest.
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 January 30, 1995 at 60 FR
5729.
FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady 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, DC., this 8th day of March, 1995.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 95-6117 Filed 3-10-95; 8:45 am]
BILLING CODE 4510-29-P
