[Federal Register Volume 79, Number 69 (Thursday, April 10, 2014)]
[Notices]
[Pages 19924-19928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07984]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Exemptions From Certain Prohibited Transaction Restrictions

AGENCY: Employee Benefits Security 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 
(ERISA or the Act) and/or the Internal Revenue Code of 1986 (the Code). 
This notice includes the following: 2014-01, Bank of America 
Corporation, D-11729; 2014-02, The ABB Inc. Cash Balance Pension Plan 
(the Cash Balance Plan); the Cash Balance Pension Plan for Certain 
Represented Employees of ABB Inc. (the Union Cash Balance Plan); the 
Pension Plan for Employees of the Process Analytics Division of ABB 
Inc. Represented by the Laborer's International Union of North America 
(AFL-CIO), Local No. 1304 (the Process Analytics Plan); the Pension 
Plan of Fischer & Porter Company (the Fischer & Porter Plan); and the 
ABB Inc. Pension Plan (UE 625 & 626) (the UE 625 & 626 Plan) (each a 
Plan, and collectively, the Plans), D-11742 thru D-11746 respectively; 
and 2014-03, Intel Corporation (Intel), L-11760.

SUPPLEMENTARY INFORMATION: A notice was published in the Federal 
Register of the pendency before the Department of proposals to grant 
such exemptions. Each notice set forth a summary of facts and 
representations contained in the application for exemption and referred 
interested persons to the application for a complete statement of the 
facts and representations. The application has been available for 
public inspection at the Department in Washington, DC. The notice also 
invited interested persons to submit comments on the requested 
exemption to the Department. In addition the notice stated that any 
interested person might submit a written request that a public hearing 
be held (where appropriate). The applicant has represented that it has 
complied with the requirements of the notification to interested 
persons. No requests for a hearing were received by the Department. 
Public comments were received by the Department as described in the 
granted exemption.
    The notice of proposed exemption was issued and the exemption is 
being granted solely by the Department because, effective December 31, 
1978, section 102 of Reorganization Plan No. 4 of 1978, 5 U.S.C. App. 1 
(1996), 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 (76 FR 66637, 66644, October 27, 2011) \1\ and based 
upon the entire record, the Department makes the following findings:
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    \1\ The Department has considered exemption applications 
received prior to December 27, 2011 under the exemption procedures 
set forth in 29 CFR Part 2570, Subpart B (55 FR 32836, 32847, August 
10, 1990).
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    (a) The exemption is administratively feasible;
    (b) The exemption is in the interests of the plan and its 
participants and beneficiaries; and
    (c) The exemption is protective of the rights of the participants 
and beneficiaries of the plan.

[[Page 19925]]

Bank of America Corporation

Located in Charlotte, NC

[Prohibited Transaction Exemption 2014-01; Application No. D-11729]

Exemption

Section I: Covered Transactions
    The restrictions of ERISA sections 406(a)(1)(D) and 406(b) and the 
sanctions resulting from the application of Code section 4975 
(including the loss of exemption \2\ by reason of Code sections 
4975(c)(1)(D), (E) and (F)) shall not apply to the receipt of 
Relationship Benefits by an individual for whose benefit a Covered Plan 
is established or maintained, or by his or her Family Members, from BAC 
pursuant to an arrangement in which the Account Value of, or the Fees 
incurred for services provided to, the Covered Plan is taken into 
account for purposes of determining eligibility to receive such 
Relationship Benefits, provided that each condition of Section II of 
this exemption is satisfied.
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    \2\ Pursuant to Code section 408(e)(2)(A)(for an individual 
retirement account or individual retirement annuity); Code section 
530(e) (for a Coverdell education savings account); Code section 
220(e)(2) (for an Archer medical savings account); or Code section 
223(e)(2) (for a health savings account).
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Section II: Conditions
    (a) The Covered Plan whose Account Value, or whose Fees paid, are 
taken into account for purposes of determining eligibility to receive 
Relationship Benefits under the arrangement must be established and 
maintained for the exclusive benefit of the participant covered under 
the Covered Plan, his or her spouse, or their beneficiaries.
    (b) The Relationship Benefits offered under the arrangement must be 
of a type that a Qualified Affiliate could offer consistent with all 
applicable federal and state banking laws and all applicable federal 
and state laws regulating Broker-Dealers.
    (c) Where Account Values are taken into account for purposes of 
determining eligibility to receive benefits under the arrangement, the 
Account Values of Covered Plan accounts shall be treated as favorably, 
for purposes of satisfying such eligibility requirements, as the 
Account Values of other types of customer accounts.
    (d) Where levels of Fees incurred are taken into account for 
purposes of determining eligibility to receive benefits under the 
arrangement, the levels of Fees incurred by Covered Plan accounts shall 
be treated as favorably, for purposes of satisfying such eligibility 
requirements, as the levels of Fees incurred by other types of customer 
accounts.
    (e) The Relationship Benefits offered under the arrangement must be 
provided by a Qualified Affiliate in the ordinary course of its 
business as a Bank or Broker-Dealer to customers who qualify for such 
benefits, but who do not maintain Covered Plans with a Qualified 
Affiliate.
    (f) The combined total of fees for the provision of services to a 
Covered Plan is not in excess of reasonable compensation within the 
meaning of ERISA section 408(b)(2) and Code section 4975(d)(2).
    (g) The investment performance of the investments made by the 
Covered Plan is no less favorable than the investment performance of 
identical investments that could have been made at the same time by a 
customer of BAC who is not eligible for (or who does not receive) 
Relationship Benefits.
    (h) The Relationship Benefits offered under the arrangement to the 
Covered Plan customer must be the same as are offered to non-Covered 
Plan customers of Qualified Affiliates having the same aggregate 
Account Value or the same amount of Fees generated.
Section III: Definitions
    The following definitions apply to this exemption:
    (a) The term ``Account Value'' means investments in cash or 
securities held in the account for which market quotations are readily 
available. For purposes of the exemption, the term ``cash'' includes 
savings accounts that are insured by a federal deposit insurance agency 
and constitute deposits as that term is defined in 29 CFR 2550.408b-
4(c)(3). The term ``Account Value'' does not include investments that 
are offered by BAC (or a Qualified Affiliate) exclusively to Covered 
Plans.
    (b) The term ``affiliate'' includes any person directly or 
indirectly controlling, controlled by, or under common control with 
Bank of America Corporation.
    (c) The term ``Bank'' means a bank described in Code section 
408(n).
    (d) The term ``BAC'' means Bank of America Corporation and any of 
its affiliates.
    (e) The term ``Broker-Dealer'' means a broker-dealer registered 
under the Securities Exchange Act of 1934, as amended.
    (f) The term ``control'' means the power to exercise a controlling 
influence over the management or policies of a person other than an 
individual.
    (g) The term ``Covered Plan'' means an IRA or other savings account 
described in section III(j) of this exemption or a Keogh Plan described 
in section III(k) of this exemption that is established with BAC as 
trustee or custodian.
    (h) The term ``Family Members'' means beneficiaries of the 
individual for whose benefit the Covered Plan is established or 
maintained, who would be members of the family as that term is defined 
in Code section 4975(e)(6), or a brother, a sister, or a spouse of a 
brother or sister.
    (i) The term ``Fees'' means commissions and other fees received by 
a Broker-Dealer from the Covered Plan for the provision of services, 
including but not limited to: Brokerage commissions, investment 
management fees, investment advisory fees, custodial fees, and 
administrative fees.
    (j) The term ``IRA'' means an individual retirement account 
described in Code section 408(a), an individual retirement annuity 
described in Code section 408(b), a Coverdell education savings account 
described in Code section 530, an Archer MSA described in Code section 
220(d), or a health savings account described in Code section 223(d). 
For purposes of this exemption, the term ``IRA'' does not include an 
employee benefit plan covered by Title I of ERISA, except for a 
Simplified Employee Pension (SEP) described in Code section 408(k) and 
a Simple Retirement Account described in Code section 408(p) that 
provides participants with the unrestricted authority to transfer their 
balances to IRAs or Simple Retirement Accounts sponsored by different 
financial institutions.
    (k) The term ``Keogh Plan'' means a pension, profit-sharing, or 
stock bonus plan qualified under Code section 401(a) and exempt from 
taxation under Code section 501(a) under which some or all of the 
participants are employees described in Code section 401(c). For 
purposes of this exemption, the term ``Keogh Plan'' does not include an 
employee benefit plan covered by Title I of ERISA.
    (l) The term ``Qualified Affiliate'' means any person directly or 
indirectly controlling, controlled by, or under common control with BAC 
that is a Bank or Broker-Dealer.
    (m) The term ``Relationship Benefits'' means reduced or no cost 
financial products and services, including premium rates of account or 
investment interest, discounted rates of interest on loans, reductions 
or waivers of otherwise applicable fees and charges, and/or 
differentiated servicing.

[[Page 19926]]

Written Comments

    The Department invited all interested persons to submit written 
comments and/or requests for a public hearing with respect to the 
notice of proposed exemption, published on November 6, 2013, at 78 FR 
66769. All comments and requests for hearing were due by December 21, 
2013. During the comment period, the Department received no comments 
and no requests for a hearing from interested persons. Accordingly, 
after giving full consideration to the entire record, the Department 
has decided to grant the exemption. The complete application file 
(Application No. D-11729), including all supplemental submissions 
received by the Department, is available for public inspection in the 
Public Disclosure Room of the Employee Benefits Security 
Administration, Room N-1513, U.S. Department of Labor, 200 Constitution 
Avenue NW., Washington, DC 20210.
    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 6, 2013, at 78 
FR 66769.

FOR FURTHER INFORMATION CONTACT: Mr. Erin S. Hesse of the Department, 
telephone (202) 693-8546. (This is not a toll-free number.)

The ABB Inc. Cash Balance Pension Plan (the Cash Balance Plan); the 
Cash Balance Pension Plan for Certain Represented Employees of ABB Inc. 
(the Union Cash Balance Plan); the Pension Plan for Employees of the 
Process Analytics Division of ABB Inc. Represented by the Laborer's 
International Union of North America (AFL-CIO), Local No. 1304 (the 
Process Analytics Plan); the Pension Plan of Fischer & Porter Company 
(the Fischer & Porter Plan); and the ABB Inc. Pension Plan (UE 625 & 
626) (the UE 625 & 626 Plan) (each a Plan, and collectively, the Plans)

Located in Cary, NC

[Prohibited Transaction Exemption 2014-02; Application Nos. D-11742 
thru D-11746 respectively]

Exemption

    The restrictions of sections 406(a)(1)(A) and 406(b)(1) and (b)(2) 
of ERISA and the sanctions resulting from the application of section 
4975(c)(1)(A) and (E) of the Code,\3\ shall not apply, to the in-kind 
contribution (the Contribution) of certain U.S. Treasury Bills (the 
Securities) to the Plans by ABB Inc., a party in interest with respect 
to the Plans, on September 14, 2012, provided that the following 
conditions are satisfied:
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    \3\ For purposes of this exemption, references to the provisions 
of Title I of ERISA, unless otherwise specified, refer also to the 
corresponding provisions of the Code.
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    (a) The fair market value of the Securities was determined by ABB 
Inc. based on the closing price of the Securities on the date of 
Contribution (the Contribution Date) as quoted by Bloomberg L.P., an 
independent third party in the business of providing financial data;
    (b) The Securities represented less than 12% of the assets of any 
Plan;
    (c) The terms of the Contribution were no less favorable to the 
Plans than those negotiated at arm's length under similar circumstances 
between unrelated parties;
    (d) The Plans paid no commissions, costs or fees with respect to 
the Contribution; and
    (e) ABB Inc. reviewed the methodology used to value the Securities 
and ensured that the Plans received the fair market value of the 
Securities.
    Effective Date: This exemption is effective as of September 14, 
2012.

Written Comments

    The Department invited all interested persons to submit written 
comments and/or requests for a public hearing with respect to the 
notice of proposed exemption (the Notice) on or before September 5, 
2013. During the comment period, the Department received two written 
comments which generally involved matters outside the scope of the 
proposed exemption. The Department also received one written comment 
from ABB Inc. (the Applicant). The Applicant's comment and the 
Department's response thereto are described below.\4\
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    \4\ Capitalized terms not defined herein have the meanings 
ascribed to them in the facts and representations of the proposed 
exemption.
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Applicant's Comment

    The Applicant's comment generally provided clarifications and/or 
updates of the names of certain corporate entities of ABB Inc. and the 
Plans' actuary, the number of employees of ABB Inc., and the numbers of 
participants and beneficiaries of the Plans. In this regard, Paragraph 
1 of the Facts and Representations section of the Notice (the F&R) 
describes ABB Inc. as the U.S. subsidiary of Asea Brown Boveri Ltd., 
and further describes ABB Inc. as employing approximately 20,000 
employees in the U.S. The Applicant clarifies that ABB Inc. is the 
indirect U.S. subsidiary of ABB Ltd., and that ABB Inc. employs 
approximately 8,000 individuals in the U.S. Paragraphs 2 and 7 of the 
F&R describe the risk management team that advises the ABB Inc. Pension 
Review Committee with respect to the investment of the assets in the 
ABB Inc. Master Trust as the Pension and Risk Management Committee. The 
Applicant clarifies that this entity is called Pension and Thrift 
Management. Section 2 of the F&R describes the Plans' actuary as Towers 
Watson. The Applicant clarifies that the actuary for each of the Plans 
is Towers Watson Delaware Holdings, Inc. The Department takes note of 
the Applicant's clarifications to Paragraphs 1, 2, and 7 of the F&R.
    Paragraph 1 of the F&R provides the participant counts for each of 
the Plans as of June 26, 2012, as that was the most recent audited 
information available at the time of the proposed exemption. The 
Applicant's comment provides an updated participant count for the Plans 
as of December 31, 2012, as follows: The Cash Balance Plan has 15,796 
participants and beneficiaries; the Union Cash Balance Plan has 701 
participants and beneficiaries; the Process Analytics Plan has 162 
participants and beneficiaries; the Fischer & Porter Plan has 1,380 
participants and beneficiaries; and the UE 625 & 626 Plan has 218 
participants and beneficiaries. The Department takes note of the 
Applicant's update to the numbers of participants and beneficiaries of 
the Plans in Paragraph 1 of the F&R.
    The Applicant also provided a correction to the table in Paragraph 
9 of the F&R that describes the increase in the estimated AFTAP for 
each Plan that occurred as a result of the Contribution. In this 
regard, the Applicant states that the table provided the correct AFTAP 
amounts but attributed such amounts to the incorrect Plans, and that 
the following table correctly reflects the AFTAP amounts for each Plan:

[[Page 19927]]



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                                                            Estimated  AFTAP
                                                                 without         AFTAP with        Increase in
                                                               discounted        discounted       AFTAP due to
                           Plan                                securities        securities        securities
                                                              contribution      contribution      contribution
                                                                (percent)                           (percent)
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Cash Balance Plan.........................................            110.44            112.29              1.85
Union Cash Balance Plan...................................            112.35            113.72              1.37
Process Analytics Plan....................................            111.74            120.39              8.65
UE 625 & 626 Plan.........................................            109.09            121.70             12.61
Fischer & Porter Plan.....................................            112.78            114.16              1.38
----------------------------------------------------------------------------------------------------------------

The Department notes the changes to the table in Paragraph 9 of the F&R 
and a conforming change to Paragraph 12 as well.
    Finally, the Applicant seeks to clarify that Paragraph 10 of the 
Summary of F&R, should read that the Contribution may have violated 
sections 406(b)(1) and (2) of the Act. The Department acknowledges this 
clarification.
    After giving full consideration to the entire record, including the 
written comment, the Department has decided to grant the exemption, as 
described above. The complete application file is available for public 
inspection in the Public Disclosure Room of the Employee Benefits 
Security Administration, Room N-1513, U.S. Department of Labor, 200 
Constitution Avenue NW., Washington, DC 20210.
    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption, refer to 
the proposed exemption published in the Federal Register on July 22, 
2013, at 78 FR 43935.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Erin Brown of the 
Department at (202) 693-8352. (This is not a toll-free number.)

Intel Corporation (Intel)

Located in Santa Clara, CA

[Prohibited Transaction Exemption 2014-03; Exemption Application No. L-
11760]

Exemption

Section I. Transactions
    The restrictions of sections 406(a)(1)(D) and 406(b) of the Act 
shall not apply, effective January 1, 2013, to:
    (a) The reinsurance of risks and the receipt of premiums therefrom 
by Technology Assurance Limited (TAL), an affiliate of Intel, as the 
term ``affiliate'' is defined in Section III(a) below, in connection 
with basic and supplemental group term life insurance sold by the 
Minnesota Life Insurance Company (MN Life), or any successor insurance 
company which is unrelated to Intel (the Fronting Insurer), to the 
Intel Group Life Insurance Plan (the Life Plan); and
    (b) The reinsurance of risks and the receipt of premiums therefrom 
by TAL, in connection with basic and supplemental accidental death and 
dismemberment (AD&D) insurance sold by the Fronting Insurer to the 
Intel Group Accidental Death and Dismemberment Plan (the AD&D Plan); 
\5\ provided the conditions set forth in Section II, below, are 
satisfied.
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    \5\ The AD&D Plan and the Life Plan are together referred to 
herein as the ``Plans.''
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Section II. Conditions
    (a) TAL---
    (1) Is a party in interest with respect to the Plans by reason of a 
stock or partnership affiliation with Intel that is described in 
section 3(14)(E) or 3(14)(G) of the Act;
    (2) Is licensed to sell insurance or conduct reinsurance operations 
in at least one ``State,'' as defined in section 3(10) of the Act;
    (3) Has obtained a Certificate of Authority from the Hawaii 
Department of Insurance, which has neither been revoked nor suspended;
    (4)(A) Has undergone an examination by an independent certified 
public accountant for its last completed taxable year immediately prior 
to the taxable year of the reinsurance transaction covered by this 
exemption; or
    (B) Has undergone a financial examination by the HIDOI within five 
(5) years prior to the end of the year preceding the year in which such 
reinsurance transaction has occurred; and
    (5) Is licensed to conduct reinsurance transactions by Hawaii, 
whose law requires that an actuarial review of reserves be conducted 
annually by an independent firm of actuaries and reported to the 
appropriate regulatory authority.
    (b) The Plans pay no more than adequate consideration for the 
insurance contracts.
    (c) No commissions are paid by the Plans with respect to the direct 
sale of such contracts or the reinsurance thereof.
    (d) In the initial year of every reinsurance contract involving TAL 
and a Fronting Insurer, there is an immediate and objectively 
determined benefit to participants and beneficiaries of the Plans in 
the form of increased benefits, and such benefits continue in all 
subsequent years of each such contract of reinsurance and in every 
renewal of each such contract, and will at least approximate the 
increase in benefits that will be effective as of January 1, 2013, as 
described in the Notice of Proposed Exemption (the Notice).
    (e) In the initial year and in subsequent years of coverage 
provided by a Fronting Insurer, the formula used by the Fronting 
Insurer to calculate premiums will be similar to formulae used by other 
insurers providing comparable coverage under similar programs. 
Furthermore, the premium charge calculated in accordance with the 
formula will be reasonable and will be comparable to the premium 
charged by the Fronting Insurer and its competitors with the same or a 
better rating providing the same coverage under comparable programs.
    (f) The Fronting Insurer has a financial strength rating of ``A'' 
or better from A. M. Best Company. The reinsurance arrangement between 
the Fronting Insurer and TAL will be indemnity insurance only, (i.e., 
the Fronting Insurer will not be relieved of liability to the Plans 
should TAL be unable or unwilling to cover any liability arising from 
the reinsurance arrangement).
    (g) The Plans retain an independent, qualified fiduciary (the I/F) 
or successor to such fiduciary, as defined in Section III(c), below, to 
analyze the transactions and to render an opinion that the requirements 
of Section II(a) through (f) and (h) of this exemption have been 
satisfied.
    (h) Participants and beneficiaries in the Plans will receive in 
subsequent years of every contract of reinsurance involving TAL and the 
Fronting Insurer no less than the immediate and objectively determined 
increased benefits such participants and

[[Page 19928]]

beneficiaries received in the initial year of each such contract 
involving TAL and the Fronting Insurer.
    (i) The I/F will: Monitor the transactions described herein on 
behalf of the Plans on a continuing basis to ensure such transactions 
remain in the interest of the Plans; take all appropriate actions to 
safeguard the interests of the Plans; and enforce compliance with all 
conditions and obligations imposed on any party dealing with the Plans.
    (j) In connection with the provision to participants in the Plans 
of the insurance coverage provided by the Fronting Insurer which is 
reinsured by TAL, the I/F will review all contracts (and any renewal of 
such contracts) of the reinsurance of risks and the receipt of premiums 
therefrom by TAL and must determine that the requirements of this 
exemption, and the terms of the increased benefits continue to be 
satisfied.
Section III. Definitions
    (a) The term ``affiliate'' of a person includes any person directly 
or indirectly, through one or more intermediaries, controlling, 
controlled by, or under common control with the person;
    (b) The term ``control'' means the power to exercise a controlling 
influence over the management or policies of a person other than an 
individual.
    (c) The term ``I/F'' describes a person, or a successor to such 
person, who is not Intel or TAL or an affiliate of either entity; and:
    (1) Does not have an ownership interest in Intel, in TAL, or in an 
affiliate of either;
    (2) Is not a fiduciary with respect to the Plans prior to its 
appointment to serve as the I/F;
    (3) Has acknowledged in writing acceptance of fiduciary 
responsibility and has agreed not to participate in any decision with 
respect to any transaction in which it has an interest that might 
affect its best judgment as a fiduciary; and
    (4) Has appropriate training, experience, and facilities to act on 
behalf of the Plans regarding the subject transactions in accordance 
with the fiduciary duties and responsibilities prescribed by the Act.
    For purposes of this definition of an ``I/F,'' no organization or 
individual may serve as an I/F for any fiscal year if the gross income 
received by such organization or individual (or partnership or 
corporation of which such individual is an officer, director, or 10 
percent or more partner or shareholder) for that fiscal year exceeds 
two percent (2%) of that organization's or individual's annual gross 
income from all sources for the prior fiscal year from Intel or from 
TAL, or from an affiliate of either (including amounts received for 
services as I/F under any prohibited transaction exemption granted by 
the Department).
    In addition, no organization or individual who is an I/F, and no 
partnership or corporation of which such organization or individual is 
an officer, director, or 10 percent (10%) or more partner or 
shareholder, may acquire any property from, sell any property to, or 
borrow any funds from Intel or from TAL, or from any affiliate of 
either during the period that such organization or individual serves as 
an I/F, and continuing for a period of six (6) months after such 
organization or individual ceases to be the I/F, or negotiates any such 
transaction during the period that such organization or individual 
serves as the I/F.
    In the event a successor I/F is appointed to represent the 
interests of the Plans with respect to the subject transactions, there 
may be no lapse in time between the resignation or termination of the 
former I/F and the appointment of the successor I/F.
    Effective Date: This exemption is effective as of January 1, 2013.

Written Comments

    In the Notice, the Department invited all interested persons to 
submit written comments and requests for a hearing within 50 days of 
the date of the publication on November 6, 2013, of the Notice in the 
Federal Register. The Notice stated that all comments and requests for 
a hearing were due by December 26, 2013. In an email dated December 4, 
2013, Intel's representative confirmed that the required notification 
was sent to all interested persons via email and/or first class mail no 
later than November 15, 2013.
    During the comment period, the Department received no requests for 
a hearing. In addition, the Department did not receive any written 
comments.
    After full consideration and review of the entire record, the 
Department has decided to grant the exemption. The complete application 
file (L-11760) is available for public inspection in the Public 
Disclosure Room of the Employee Benefits Security Administration, Room 
N-1513, U.S. Department of Labor, 200 Constitution Avenue NW., 
Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Blessed Chuksorji-Keefe of the 
Department, telephone (202) 693-8567. (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 exemption 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 an exemption is subject to the express 
condition that the material facts and representations contained in the 
application accurately describes all material terms of the transaction 
which is the subject of the exemption.

    Signed at Washington, DC, this 27th day of March, 2014.
Lyssa E. Hall,
Acting Director of Exemption Determinations, Employee Benefits Security 
Administration, U.S. Department of Labor.
[FR Doc. 2014-07984 Filed 4-9-14; 8:45 am]
BILLING CODE 4510-29-P