[Federal Register Volume 59, Number 91 (Thursday, May 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11529]
[[Page Unknown]]
[Federal Register: May 12, 1994]
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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 94-38; Exemption Application No. D-
9601, et al.]
Grant of Individual Exemptions; Genelabs Technologies, Inc.
Section 401(k) 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.
Genelabs Technologies, Inc. Section 401(k) Plan (the Plan) Located
in Redwood City, CA; Exemption
[Prohibited Transaction Exemption 94-38; Exemption Application No. D-
9601]
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) by the Plan of Group
Annuity Contract Number 7410 (GA-7410) issued by Mutual Benefit Life
Insurance Company, located in Newark, New Jersey to Genelabs
Technologies, Inc., located in Redwood City, California, the sponsoring
employer and a party in interest with respect to the Plan; provided
that (1) the Sale is a one-time transaction for cash; (2) the Plan does
not experience any loss nor incur any expenses from the transaction;
(3) the Plan receives no less than the fair market value of GA-7410 as
determined at the time of the Sale; and (4) the independent trustee for
the Plan determines the fair market value of GA-7410 and also
determines that the Sale is appropriate for the Plan and in the best
interests of the Plan and its participants and beneficiaries.
For a more complete statement of the facts and represents
supporting the Department's decision to grant this exemption refer to
the notice of proposed exemption published on March 16, 1994, at 59 FR
12349.
FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Potter Law Firm Retirement Plan (the Plan) Located in Tyler, Texas;
Exemption
[Proposed Transaction Exemption 94-39; Exemption Application No. D-
9617]
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 a certain one-half
undivided interest in real property (the Property) by the Plan to
Potter, Minton, Roberts, Davis & Jones, P.C. (the Employer), a party in
interest with respect to the Plan; provided that (1) the Sale is a one-
time transaction for cash; (2) the Plan does not suffer any loss nor
incur any expenses in the transaction; (3) the Plan receives as
consideration the greater of either the fair market value of the
Property as determined by an independent appraiser on the date of the
Sale, or receives all the funds expended by the Plan in acquiring and
maintaining the Property; and (4) the trustee of the Plan has
determined that the Sale is appropriate for the Plan and is in the best
interests of the Plan and its participants and beneficiaries.
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 March 8, 1994, at 59 FR
10839.
FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Southern Union Company Southern Union Savings Plan (the Plan)
Located in Austin, Texas; Exemption
[Prohibited Transaction Exemption 94-40; Application No. D-9594]
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 (1) the past acquisition by the Plan
of certain transferable stock rights (the Rights) pursuant to a stock
rights offering (the Offering) by Southern Union Company (the
Employer), the sponsor of the Plan; (2) the past holding of the Rights
by the Plan during the subscription period of the Offering; and (3) the
disposition or exercise of the Rights by the Plan; provided that the
following conditions are satisfied:
(A) The Plan's acquisition and holding of the Rights occurred in
connection with the Offering made available to all shareholders of
common stock of the Employer;
(B) The Plan's acquisition and holding of the Rights resulted from
an independent act of the Employer as a corporate entity, and all
holders of the common stock of the Employer, including the Plan, were
treated in the same manner with respect to the Offering; and
(C) All decisions regarding the holding and disposition of the
Rights by the Plan were made, in accordance with Plan provisions for
individually-directed investment of participant accounts, by the
individual Plan participants whose accounts in the Plan received Rights
in connection with the Offering, including all determinations regarding
the exercise or sale of the Rights received through the Offering
(except for those participants who failed to file timely and valid
instructions concerning the Rights, in which case the Rights were
sold).
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 March 16, 1994 at 59 FR
12351.
EFFECTIVE DATE: This exemption is effective November 30, 1993.
FOR FURTHER INFORMATION CONTACT: Ms. Virginia J. Miller 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 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 6th day of May, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 94-11529 Filed 5-11-94; 8:45 am]
BILLING CODE 4510-29-P
