[Federal Register Volume 59, Number 100 (Wednesday, May 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12715]


[[Page Unknown]]

[Federal Register: May 25, 1994]


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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 94-41; Exemption Application No. D-
9623, et al.]

 

Grant of Individual Exemptions; Hensel Phelps Construction Co. 
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.

Hensel Phelps Construction Co. Profit Sharing Plan (the Plan) Located 
in Greeley, Colorado; Exemption

[Prohibited Transaction Exemption 94-41; Exemption Application No. D-
9623]

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 Plan to Hensel Phelps Construction Co., 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 29, 1994, at 59 FR 
14678.

FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

Meridian Trust Company Employee Benefit Equity Find and Fixed Income 
Fund (the Funds) Located in Malvern, Pennsylvania; Exemption

[Prohibited Transaction Exemption 94-42; Exemption Application Nos. D-
9447 and D-9448]

    The restrictions of sections 406(a) and 406(b)(1) and (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 past sale for cash of certain notes (the Notes) 
from the Funds to Meridian Asset Management Inc. (Meridian), a party in 
interest with respect to the Funds, provided that the following 
conditions were met at the time of the sale:
    1. The terms of the sale were at least as favorable as those the 
Funds could have obtained in an arm's-length transaction with an 
unrelated party;
    2. Meridian paid the unpaid principal balance plus accrued interest 
on the Notes as of the time of sale;
    3. The fair market value of the Notes was determined by a qualified 
independent appraiser to be less than the unpaid principal balance plus 
accrued interest;
    4. The funds received all cash as a result of the transaction; and
    5. The Funds paid no fees or commissions in regard to the sale.
    Effective Date: This exemption is effective as of April 30, 1992.
    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 
12353.

FOR FURTHER INFORMATION CONTACT: Paul Kelty of the Department, 
telephone (202) 219-8883. (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 20th day of May, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 94-12715 Filed 5-24-94; 8:45 am]
BILLING CODE 4510-29-P