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EBSA Notices

Grant of Individual Exemptions; IRA FBO Floyd A. Ross (the IRA)   [10/19/2000]
[PDF]
[Federal Register: October 19, 2000 (Volume 65, Number 203)]
[Notices]               
[Page 62755-62756]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc00-128]                         

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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

[Prohibited Transaction Exemption 2000-50; Exemption Application No. D-
10871, et al.]

 
Grant of Individual Exemptions; IRA FBO Floyd A. Ross (the IRA)

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, 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 (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.

IRA FBO Floyd A. Ross (the IRA) Located in Ukiah, California

[Prohibited Transaction Exemption 2000-50; Exemption Application No. D-
10871]

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 proposed purchase by the IRA of certain closely held 
common stock (the Stock) from the Ross Family Trust (the Family Trust), 
a disqualified person with respect to the IRA,\1\ provided that the 
following conditions are satisfied:
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    \1\ Pursuant to 29 CFR 2510.3-2(d), the IRA is not within the 
jurisdiction of Title I of the Act. However, there is jurisdiction 
under Title II of the Act, pursuant to section 4975 of the Code.
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    (a) The purchase is a one-time transaction for cash;
    (b) The terms and conditions of the purchase are at least as 
favorable to the IRA as those available in a comparable arm's length 
transaction with an unrelated party;
    (c) The IRA pays a purchase price that is no greater than the fair 
market value of the Stock at the time of the transaction, as 
established by a qualified, independent appraiser;
    (d) The IRA pays no commissions nor other expenses in connection 
with the purchase; and
    (e) The fair market value of the Stock represents no more than 25 
percent of the total assets of the IRA at the time of 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 September 7, 2000 at 65 
FR 54313.

FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

Platt Orthopedics Retirement Plan (the Plan) Located in Rancho 
Mirage, California

[Prohibited Transaction Exemption 2000-51; Exemption Application No. D-
10875]

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 proposed sale by the Plan of certain improved real 
property (the Property) to Morris and Arthur Platt, disqualified 
persons with respect to the Plan,\2\ provided that the following 
conditions are satisfied: (1) The sale is a one-time transaction for 
cash; (2) the Plan pays no commissions nor other expenses relating to 
the sale; and (3) the Plan receives an amount equal to the average of 
two independent appraisals

[[Page 62756]]

of the Property's fair market value, as of the date of the sale.
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    \2\ Because Morris and Arthur Platt, who are owner-employees, 
and Arthur Platt's wife are the only participants in the Plan, the 
Plan is not within the jurisdiction of Title I of the Act. However, 
there is jurisdiction under Title II of the Act, pursuant to section 
4975 of the Code.
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    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 September 7, 2000 at 65 
FR 54314.

FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng 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 accurately describes all material terms of the transaction 
which is the subject of the exemption.

    Signed at Washington, D.C., this 13th day of October, 2000.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor .
[FR Doc. 00-26788 Filed 10-18-00; 8:45 am]
BILLING CODE 4510-29-P