[Federal Register Volume 64, Number 136 (Friday, July 16, 1999)]
[Notices]
[Pages 38480-38481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18122]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 99-26; Exemption Application No. D-
10702, et al.]
Grant of Individual Exemptions; Hanson Operating Company, 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.
Hanson Operating Company, Inc., Defined Benefit Pension Plan (the
Plan), Located in Roswell, New Mexico
[Prohibited Transaction Exemption 99-26; Exemption Application No. D-
10702]
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 proposed sale by the Plan of certain closely-
held stock (the Stock) to Douglas L. McBride and Basil R. Willis,
parties in interest with respect to the Plan, provided that the
following conditions are satisfied: (a) The sale is a one-time
transaction for cash; (b) the Plan pays no commissions nor other
expenses relating to the sale; and (c) the Plan receives an amount that
is no less than the fair market value of the Stock as of
[[Page 38481]]
the date of the sale, as determined by a qualified, 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 April 22, 1999 at 64 FR
19815.
Written Comments
The Department received no written comments or requests for a
public hearing with respect to the notice of proposed exemption (the
Notice). However, the applicants informed the Department that they
inadvertently failed to inform interested persons of the deadline for
making written comments or requests for a public hearing with respect
to the Notice, which was provided by personal delivery. The applicants
state that, therefore, an additional memorandum extending the comment
period to June 20, 1999 was circulated by personal delivery to all
interested persons.
The Department believes that the required procedure for notifying
interested persons was satisfied. Accordingly, based upon the
information contained in the entire record, the Department has
determined to grant the exemption as proposed.
FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Western Petroleum Company Profit Sharing Plan (the Plan), Located
in Eden Prairie, Minnesota
[Prohibited Transaction Exemption 99-27; Exemption Application No. D-
10743]
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 proposed sale by the individual account (the
Account) of James W. Emison in the Plan of certain closely-held stock
(the Stock) to Mr. Emison, a party in interest with respect to the
Plan, provided that the following conditions are satisfied: (a) the
sale is a one-time transaction for cash; (b) the Account pays no
commissions nor other expenses relating to the sale; and (c) the
Account receives an amount that is no less than the fair market value
of the Stock as of the date of the sale, as determined by a qualified,
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 May 27, 1999 at 64 FR
28836.
FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Gaetano Lombardo Individual Retirement Account (the IRA), Located
in St. Louis, Missouri
[Prohibited Transaction Exemption 99-28; Exemption Application No. D-
10749]
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 the Code,
shall not apply to the proposed sale by the IRA of 26,306 shares of
stock (the Stock) of Courtesy Manufacturing Company (Courtsey) to
Courtesy, a disqualified person with respect to the IRA, provided that
the following conditions are satisfied: (1) The sale of Stock by the
IRA is a one-time transaction for cash; (2) no commissions or other
expenses are paid by the IRA in connection with the sale; and (3) the
IRA receives the greater of: (a) The fair market value of the Stock as
determined by a qualified independent appraiser as of October 31, 1998,
or (b) the fair market value of the Stock as of the time of the sale.
\1\
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\1\ Pursuant to 29 CFR 2510.3-2(d), the IRA is not within the
jurisdiction of Title I of the Act. However, there is jurisdiction
under Title II of the Act pursuant to section 4975 of the Code.
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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 June 3, 1999.
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 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 12th day of July, 1999.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits,
Administration, Department of Labor.
[FR Doc. 99-18122 Filed 7-15-99; 8:45 am]
BILLING CODE 4510-29-M
