19924 Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices 

1The 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). 

SUPPLEMENTARY INFORMATION: The 

OWCP administers the Longshore and 

Harbor Workers’ Compensation Act. The 

Act provides benefits to workers injured 

in maritime employment on the 

navigable waters of the United States or 

in an adjoining area customarily used by 

an employer in loading, unloading, 

repairing, or building a vessel. The Act 

provides that reasonable funeral 

expenses, not to exceed $3,000, shall be 

paid in all compensable death cases. 

The OWCP has developed Form LS–265 

for use in submitting the funeral 

expenses for payment. 

This information collection is subject 

to the PRA. A Federal agency generally 

cannot conduct or sponsor a collection 

of information, and the public is 

generally not required to respond to an 

information collection, unless it is 

approved by the OMB under the PRA 

and displays a currently valid OMB 

Control Number. In addition, 

notwithstanding any other provisions of 

law, no person shall generally be subject 

to penalty for failing to comply with a 

collection of information that does not 

display a valid Control Number. See 5 

CFR 1320.5(a) and 1320.6. The DOL 

obtains OMB approval for this 

information collection under Control 

Number 1240–0040. 

OMB authorization for an ICR cannot 

be for more than three (3) years without 

renewal, and the current approval for 

this collection is scheduled to expire on 

April 30, 2014. The DOL seeks to extend 

PRA authorization for this information 

collection for three (3) more years, 

without any change to existing 

requirements. The DOL notes that 

existing information collection 

requirements submitted to the OMB 

receive a month-to-month extension 

while they undergo review. For 

additional substantive information 

about this ICR, see the related notice 

published in the Federal Register on 

December 20, 2013 (78 FR 77169). 

Interested parties are encouraged to 

send comments to the OMB, Office of 

Information and Regulatory Affairs at 

the address shown in the ADDRESSES

section within 30 days of publication of 

this notice in the Federal Register. In 

order to help ensure appropriate 

consideration, comments should 

mention OMB Control Number 1240– 

0040. The OMB is particularly 

interested in comments that: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

Agency: DOL–OWCP. 

Title of Collection: Certification of 

Funeral Expenses. 

OMB Control Number: 1240–0040. 

Affected Public: Private Sector— 

businesses or other for-profits. 

Total Estimated Number of 

Respondents: 75. 

Total Estimated Number of 

Responses: 75. 

Total Estimated Annual Time Burden: 

19 hours. 

Total Estimated Annual Other Costs 

Burden: $39. 

Dated: April 3, 2014. 

Michel Smyth, 

Departmental Clearance Officer. 

[FR Doc. 2014–08050 Filed 4–9–14; 8:45 am] 

BILLING CODE 4510–CF–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

Exemptions From Certain Prohibited 

Transaction Restrictions 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Grant of Individual Exemptions. 

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: 

(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. 


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2Pursuant 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). 

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. 

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. 


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19926 Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices 

3For 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. 

4Capitalized terms not defined herein have the 

meanings ascribed to them in the facts and 

representations of the proposed exemption. 

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: 

(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

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: 


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Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices 19927 

5The AD&D Plan and the Life Plan are together 

referred to herein as the ‘‘Plans.’’ 

Plan 

Estimated 

AFTAP without 

discounted 

securities 

contribution 

(percent) 

AFTAP with 

discounted 

securities 

contribution 

Increase in 

AFTAP due to 

securities 

contribution 

(percent) 

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. 

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 


sroberts on DSK5SPTVN1PROD with NOTICES
19928 Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices 

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 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

Notice of Availability of Funds and 

Solicitation for Grant Applications for 

Women in Apprenticeship and 

Nontraditional Occupations Technical 

Assistance Grants 

AGENCY: Employment and Training 

Administration, Labor. 

ACTION: Notice of Solicitation for Grant 

Applications (SGA). 


sroberts on DSK5SPTVN1PROD with NOTICES