[Federal Register Volume 59, Number 151 (Monday, August 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19209]


[[Page Unknown]]

[Federal Register: August 8, 1994]


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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 94-56; Exemption Application No. L-
9412, et al.]

 

Grant of Individual Exemptions; Beaumont Area Pipefitters Joint 
Apprenticeship Committee, 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.

Beaumont Area Pipefitters Joint Apprenticeship Committee (the Plan) 
Located in Beaumont, Texas

[Prohibited Transaction Exemption 94-56; Exemption Application No. L-
9412]

Exemption

    The restrictions of sections 406(a) and 406(b) (1) and (2) of the 
Act shall not apply to the purchase of certain real property (the 
Property) by the Plan from Pipefitters Local 195 of the United 
Association of Journeymen and Apprentices of the Plumbing and 
Pipefitting Industry (the Union), a party in interest with respect to 
the Plan, provided that the following conditions are met:
    1. An independent fiduciary determines that the proposed 
transaction is in the best interests of the Plan;
    2. The fair market value of the Property is established by an 
appraiser unrelated to the Plan or the Union;
    3. The Plan pays no more than the lesser of $462,800 or the fair 
market value of the Property as determined at the time of purchase;
    4. The purchase is a one-time transaction for cash; and
    5. The Plan pays no fees or commissions in regard to the 
transaction.
    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 12, 1994, at 59 FR 
24730.

FOR FURTHER INFORMATION CONTACT: Paul Kelty of the Department, 
telephone (202) 219-8883. (This is not a toll-free number.)

Western Capital Investment Corporation Employees' Retirement Fund (the 
Plan) Located in Denver, CO

[Prohibited Exemption 94-59; Exemption Application No. D-9489]

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 cash sale by the Plan, on December 27, 1990, of 
certain of its assets (the Assets) to Bank Western, a Federal Savings 
Bank, the principal subsidiary of the Plan's former sponsor and a party 
in interest with respect to the Plan.
    This exemption is conditioned on the following requirements: (1) 
The sale represented a one-time transaction for cash; (2) the sales 
price for each Asset was based upon its fair market value as determined 
by a qualified, independent appraisal; (3) the Plan did not pay any 
fees or commissions in connection with the sale; and (4) Colorado 
National Bankshares, Inc. files a Form 5330 with the Internal Revenue 
Service and pays any applicable excise taxes that may be due on any of 
the Assets within 90 days of the publication in the Federal Register of 
the notice granting the exemptive relief herein.
    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 25, 1994 at 59 FR 
27037.
    Effective Date: This exemption is effective December 27, 1990.
    For Further Information Contact: Ms. Jan D. Broady of the 
Department, telephone (202) 219-8881. (This is not a toll-free number.)

B&B Securities, Inc. Money Purchase Pension Plan (the Plan) Located in 
Seaford, New York

[Prohibited Transaction Exemption 94-60; Exemption Application No. D-
9705]

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 purchase by the individual accounts in the Plan 
of Barry Reich and Robert McGrath of a condominium (the Property) from 
Mr. Reich, a party in interest with respect to the Plan, provided that 
the following conditions are satisfied:
    (a) The purchase will be a one-time cash transaction;
    (b) The price paid by the Accounts will be the lesser of 
$121,6001 or the fair market value of the Property at the time of 
the purchase as determined by an independent, qualified appraiser less 
a sales commission, which may have otherwise been paid by Mr. Reich in 
a sale of the Property to an unrelated party;
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    \1\This figure represents the fair market value of the Property 
determined by an independent qualified appraiser as of November 10, 
1993 less a 5% sales commission, which it is represented is the 
standard sales commission in the state of Pennsylvania.
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    (c) The Accounts will pay no expenses associated with the 
transaction;
    (d) The transaction will enable the Accounts to acquire the 
Property which is expected to yield rental income;
    (e) the fair market value of the Property will at no time exceed 
25% of either Account's total assets or the Plan's total assets; and
    (f) Mr. Reich and Mr. McGrath are the only participants of the Plan 
that would be affected by the proposed transaction.
    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 
33547/33548.
    For Further Information Contact: Ekaterina A. Uzlyan 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, D.C., this 2nd day of August, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 94-19209 Filed 8-5-94; 8:45 am]
BILLING CODE 4510-29-P