[Federal Register Volume 60, Number 167 (Tuesday, August 29, 1995)]
[Notices]
[Pages 44904-44906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21392]



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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 95-71; Exemption Application No. D-
09582, et al.]


Grant of Individual Exemptions; Retirement Plan for Employees of 
United Jewish Appeal-Federation of Jewish Philanthropies of New York, 
Inc. and Affiliated Agencies and Institutions (the 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.

Retirement Plan for Employees of United Jewish Appeal-Federation of 
Jewish Philanthropies of New York, Inc. and Affiliated Agencies and 
Institutions (the Plan) Located in New York, New York

[Prohibited Transaction Exemption 95-71; Exemption Application No. D-
09582]

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 effective May 29, 1990, to the past purchase and sale 
of certain securities (the Securities) on May 29, 1990, between the 
Plan and the endowment fund (the Fund) of the United Jewish Appeal-
Federation of Jewish Philanthropies of New York, Inc. (the Federation), 
a sponsor of the Plan and a party in interest with respect to the Plan; 
provided that the following conditions are satisfied:
    (a) The transfer of the Securities was a one-time cash transaction;
    (b) The transaction was at fair market value as determined by the 
closing prices on May 25, 1990, on the New York Stock Exchange (NYSE) 
and the American Stock Exchange (AMEX);
    (c) The Plan paid no commissions with respect to the transaction;
    (d) The Federation determined upon consultation with Delaware 
Investment Advisors to engage in the transaction;
    (e) The Securities transferred from the Fund to the Plan were all 
listed on either the NYSE or AMEX, and constituted exactly a 50% pro 
rata share of all the securities then owned by the Fund; and
    (f) Over a three plan year period, the Federation will contribute 
$513,009.39 to the Plan to make up the loss sustained by the Plan when 
the Securities were sold out of the Plan portfolio.

EFFECTIVE DATE: This exemption will be effective as of May 29, 1990.
    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, 1995 at 60 FR 
33860/33861.

FOR FURTHER INFORMATION CONTACT: Ekaterina A. Uzlyan of the Department 
at (202) 219-8883. (This is not a toll-free number.)
Apartment Laundries, Inc. Profit Sharing Plan (the Plan), Located in 
Tulsa, Oklahoma

[Prohibited Transaction Exemption 95-72; Application No.: D-09835]

    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 lease (the Lease) of improved property (the 
Property) by the individual account of James L. Sharp (the Account) in 
the Plan to Apartment Laundries, a party in interest with respect to 
the Plan provided that the following conditions are met: (1) the terms 
of the Lease are and will remain at least as favorable as the Plan 
could obtain in an arm's length transaction with an unrelated party; 
(2) the Property's fair market rental value has been and will continue 
to be determined on an annual basis by a qualified, independent 
appraiser; and (3) the fair market value of the Property, as determined 
by a qualified, independent appraiser, represents no more than 25% of 
value of the assets in the Account.
    For a more complete statement of the facts and representations 
supporting this exemption, refer to the notice of proposed exemption 
published on July 12, 1995 at 60 FR 35942.

FOR FURTHER INFORMATION CONTACT: Allison Padams, of the Department, 
telephone (202) 219-8971. (This is not a toll-free number.)

General Motors Hourly-Rate Employees Pension Plan, General Motors 
Retirement Program for Salaried Employees (the Salaried Plan), Saturn 
Individual Retirement Plan for Represented Team Members, Saturn 
Personal Choices Retirement Plan for Non-Represented Team Members, and 
Employees' Retirement Plan for GMAC Mortgage Corporation (collectively, 
the Plans) Located in New York, New York

[Prohibited Transaction Exemption 95-73; Exemption Application Nos. D-
09859 through D-09863]

Exemption

    The restrictions of sections 406(a) of the Act and the sanctions 
resulting from 

[[Page 44905]]
the application of section 4975 of the Code, by reason of section 
4975(c)(1) (A) through (D) of the Code, shall not apply, effective 
April 9, 1994, to the acquisition by the Plans of limited partnership 
interests (the Interests) in APA Excelsior III, L.P. from Metropolitan 
Life Insurance Company (Metropolitan), a party in interest with respect 
to the Plans; provided that the following conditions are satisfied:
    (A) All terms and conditions of the transaction were at least as 
favorable to the Plans as those which the Plans could obtain in an 
arm's-length transaction with an unrelated party;
    (B) Metropolitan is not, and has not been, a fiduciary with respect 
to any assets of the Plans involved in the transaction;
    (C) The transaction was a one-time transaction for cash in which 
the purchase price did not exceed the fair market value of the 
Interests;
    (D) The methodology for determining the fair market value of the 
Interests was in accordance with standards maintained by professional 
venture capital valuation specialists for the valuation of limited 
partnership interests in venture capital partnerships; and
    (E) Metropolitan did not participate in the Plans' determination of 
the fair market value of the Interests.

EFFECTIVE DATE: This exemption is effective as of April 9, 1994.
    For a more complete statement of the facts and representations 
supporting this exemption, refer to the notice of proposed exemption 
published on June 29, 1995 at 60 FR 33861.

FOR FURTHER INFORMATION CONTACT: Ronald Willett of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)
First and Farmers Bank of Somerset, Inc. (the Bank) Located in 
Somerset, Kentucky

[Prohibited Transaction Exemption 95-74; Application Numbers D-09921 
through D-09926]

Exemption

    The restrictions of sections 406(a), 406(b)(1) and 406(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, as of April 25, 1995, to the cash sale of certain 
collateralized mortgage obligations (CMOs) held by six employee benefit 
plans for which the Bank acts as trustee (the Plans) to the Bank, a 
party in interest with respect to the Plans.
    This exemption is subject to the following conditions:
    (1) Each sale was a one-time transaction for cash;
    (2) Each Plan received an amount that was equal to the greater of: 
(a) the outstanding principal balance for each CMO owned by the Plans, 
plus accrued but unpaid interest, at the time of the sale; (b) the 
amortized cost for each CMO owned by the Plans, plus accrued but unpaid 
interest, as determined by the Bank on the date of the sale; or (c) the 
fair market value of each CMO owned by the Plans as determined by the 
Bank on the basis of reasonable inquiry from at least three sources 
that are broker-dealers or pricing services independent of the Bank at 
the time of the sale;
    (3) The Plans did not pay any commissions or other expenses with 
respect to the sale;
    (4) The Bank, as trustee of the Plans, determined that the sale of 
the CMOs was in the best interests of each of the Plans and their 
participants and beneficiaries at the time of the transaction;
    (5) The Bank took all appropriate actions necessary to safeguard 
the interests of the Plans and their participants and beneficiaries in 
connection with the transactions; and
    (6) Each Plan received a reasonable rate of return on the CMOs 
during the period of time that it held the CMOs.

EFFECTIVE DATE: This exemption is effective as of April 25, 1995.
    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 Notice published on June 29, 1995, at 
60 FR 33864.

FOR FURTHER INFORMATION CONTACT: Mr. E. F. Williams of the Department, 
telephone (202) 219-8194. (This is not a toll-free number.)

Construction Laborers Pension Trust for Southern California (the Trust) 
Located in El Monte, California

[Prohibited Transaction Exemption 95-75; Application No. D-09932]

Exemption

    The restrictions of section 406(a) 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 (D) of the Code, shall not apply, 
effective December 22, 1989, to the leasing (the Lease) of space in a 
commercial office building owned by 4401 Santa Anita Corporation (the 
Corporation), a corporation that is wholly-owned by the Trust, to 
American Benefit Plan Administrators, Inc., a party in interest with 
respect to the Trust.
    This exemption is conditioned on the following requirements: (1) 
The terms of all such leasing arrangements have been, and will remain, 
at least as favorable to the Trust as those obtainable in an arm's 
length transaction with an unrelated party; (2) an independent, 
qualified fiduciary determined, at the Lease's inception, that the 
Lease was in the best interests of the Trust and its participants and 
beneficiaries; (3) an independent, qualified fiduciary has monitored 
and will continue to monitor the Lease for the Trust and the terms and 
conditions of the exemption; and (4) the rental charged by, and paid 
to, the Corporation under the Lease has been, and will continue to be, 
the fair market rental value of the premises as determined by an 
independent, qualified appraiser.

EFFECTIVE DATE: This exemption is effective as of December 22, 1989.
    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 22, 1995 at 60 FR 
27125.

FOR FURTHER INFORMATION CONTACT: Mr. E. F. Williams of the Department, 
telephone (202) 219-8194. (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 

[[Page 44906]]
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 24th day of August, 1995.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 95-21392 Filed 8-28-95; 8:45 am]
BILLING CODE 4510-29-P