[Federal Register Volume 59, Number 170 (Friday, September 2, 1994)]
[Notices]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21771]
[[Page Unknown]]
[Federal Register: September 2, 1994]
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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 94-65; Exemption Application No. D-
9616, et al.]
Grant of Individual Exemptions; Long Mfg. N.C. Inc. Retirement
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, 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.
Long Mfg. N.C. Inc. Employee's Retirement Plan (the Plan) Located in
Tarboro, North Carolina
[Prohibited Transaction Exemption 94-65; Exemption Application No. D-
9616]
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 sale of certain real property (the Tarboro
Property) by the Plan to Long Mfg. N.C. Inc. (the Employer), the Plan
sponsor and a party in interest with respect to the Plan; provided that
the following conditions are satisfied:
(1) The sale will be a one-time cash transaction;
(2) The Plan will incur no expenses as a result of the transaction;
(3) the Plan will receive the greater of: (a) $188,548,
representing the Plan's total investment in the Tarboro Property; or
(b) the fair market value of the Tarboro Property as determined at the
time of the sale by an independent, qualified appraiser; and
(4) the Employer will file form 5330 (return of Initial Excise
Taxes for Pension Plans and Profit Sharing Plans) with the Internal
Revenue Service (the IRS) and pay the appropriate excise taxes due with
respect to the past prohibited leasing of the Tarboro Property by the
Plan to the Employer within 90 days of the date of the publication of
the exemption in the Federal Register.
For a more complete statement of facts and representations
supporting the Department's decision to grant this exemption refer to
the notice of proposed exemption published on June 29, 1994 at 59 FR
33548/33550.
FOR FURTHER INFORMATION CONTACT: Ekaterina A. Uzlyan of the Department,
telephone (202) 219-8883. (This is not a toll-free number.)
Thomas G. Soper, M.D., S.C. Employees' Pension Plan and Trust (the
Plan) Located in Evanston, Illinois
[Prohibited Transaction Exemption 94-66; Exemption Application No. D-
9703]
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 Thomas E. Soper, a disqualified person 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 in the proposed transaction; and (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 an amount equal to all the funds expended by
the Plan in acquiring and maintaining the Property.
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 July 13, 1994, at 59 FR
35760.
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 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 30th day of August, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 94-21771 Filed 9-1-94; 8:45 am]
BILLING CODE 4510-29-P