[Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1044]
[[Page Unknown]]
[Federal Register: January 18, 1994]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 94-4; Exemption Application No. D-
9439, et al.]
Grant of Individual Exemptions; Ackman, Marek, Boyd & Simutis
Profit Sharing 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.
Ackman, Marek, Boyd & Simutis Profit Sharing Plan (the Plan) Located in
Kankakee, Illinois
[Prohibited Transaction Exemption 94-4; Exemption Application No. D-
9439]
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 cash sale by two individually directed
accounts in the Plan (the Accounts) of J. Dennis Marek (Mr. Marek) and
Mr. Boyd of 7.68 acres of unimproved land (the Parcel) to Mr. Marek, a
party in interest with respect to the Plan; provided that the following
conditions are satisfied:
(a) The proposed sale will be a one-time cash transaction;
(b) The Plan and the Accounts will incur no expenses as a result of
the transaction; and
(c) As a result of this transaction, the Accounts will receive the
greater of: (1) 1/2 each of the original acquisition cost of the Parcel
plus any proportionate holding costs; or (2) 1/2 each of the fair
market value of the Parcel as determined by a qualified independent
appraiser at the time the transaction is consummated.
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 December 3, 1993 at 58 FR
64011/64012.
FOR FURTHER INFORMATION CONTACT: Ekaterina A. Uzlyan, telephone (202)
219-8883. (This is not a toll-free number).
David Rothman, M.D. Employee's Pension Plan and David Rothman, M.D.
Employee's Profit Sharing Plan (Collectively, the Plans) Located in
Miami, Florida
[Prohibited Transaction Exemption 94-5; Exemption Application Nos. D-
9575 and D-9576]
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 (the Sale) of certain real property
(the Property) by the individual accounts of David Rothman, M.D. (Dr.
Rothman) in the Plans to Dr. Rothman, a party in interest with respect
to the Plans, provided that the consideration paid for the Property is
no less than the fair market value of the Property on 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 December 10, 1993, at 58
FR 64985.
FOR FURTHER INFORMATION CONTACT: Mr. C. E. Beaver of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Stanley Picheny IRA, Arthur Millman IRA, William Millman IRA, and
Bernard Blum IRA (Collectively, the IRAs) Located in New York, New York
[Prohibited Transaction Exemption 94-6; Exemption Application Nos. D-
9554 thru D-9557]
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 redemption by Homemaker, Industries, Inc.
of its issued and outstanding shares of common stock (the Shares) held
by the IRAs; provided that (1) the fair market value of the Shares is
received by the IRAs, as determined on the date of the redemption by a
qualified, independent appraiser, and (2) the IRAs do not incur any
expenses in connection with the proposed redemption.
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 December 3, 1993, at 58
FR 64016.
FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Profit Sharing Plan of A.H. Williams & Co., Inc. (the Plan) Located in
Philadelphia, Pennsylvania
[Prohibited Transaction Exemption 94-7; Exemption Application No. D-
9518]
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 May 25, 1993 sale to the individually-directed
accounts (the Accounts) of six participants in the Plan by A.H.
Williams & Co., Inc. (Williams) of certain bonds issued by the
Montgomery County Industrial Development Authority, provided the
following conditions have been satisfied: (a) The bonds represented no
more than 25% of the assets of any of the Accounts at the time of their
acquisition; (b) Williams did not receive any fees or commissions in
connection with the sale of the bonds to the Accounts; and (c) the
purchase of the bonds by the Accounts was on terms at least as
favorable to the Accounts as otherwise made available by Williams to
unrelated purchasers.
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 November 10, 1993 at 58
FR 59739.
EFFECTIVE DATE: This exemption is effective May 25, 1993.
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 11th day of January 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 94-1044 Filed 1-14-94; 8:45 am]
BILLING CODE 4510-29-P