87600 Federal Register / Vol. 89, No. 213 / Monday, November 4, 2024 / Notices 

review and approval in accordance with 

the Paperwork Reduction Act of 1995. 

DATES: Comments are encouraged and 

will be accepted for 30 days until 

December 4, 2024. 

FOR FURTHER INFORMATION CONTACT: If 

you have comments especially on the 

estimated public burden or associated 

response time, suggestions, or need a 

copy of the proposed information 

collection instrument with instructions 

or additional information, please 

contact: Niki Wiltshire, Personnel 

Security Division, by email at 

Niki.Wiltshire@atf.gov, or telephone at 

202–648–9260. 

SUPPLEMENTARY INFORMATION: The 

proposed information collection was 

previously published in the Federal 

Register, 89 FR 67105, on Monday, 

August 19, 2024, allowing a 60-day 

comment period. Written comments and 

suggestions from the public and affected 

agencies concerning the proposed 

collection of information are 

encouraged. Your comments should 

address one or more of the following 

four points: 

—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/or 

—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. 

Written comments and 

recommendations for this information 

collection should be submitted within 

30 days of the publication of this notice 

on the following website 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

30-day Review—Open for Public 

Comments’’ or by using the search 

function and entering either the title of 

the information collection or the OMB 

Control Number 1140–0119. This 

information collection request may be 

viewed at www.reginfo.gov. Follow the 

instructions to view Department of 

Justice, information collections 

currently under review by OMB. 

DOJ seeks PRA authorization for this 

information collection for three (3) 

years. OMB authorization for an ICR 

cannot be for more than three (3) years 

without renewal. The DOJ notes that 

information collection requirements 

submitted to the OMB for existing ICRs 

receive a month-to-month extension 

while they undergo review. 

Overview of this information 

collection: 

1. Type of Information Collection: 

Revision of a previously approved 

collection. 

2. Title of the Form/Collection: 

Request for Interim Security Clearance. 

3. Agency form number, if any, and 

the applicable component of the 

Department of Justice sponsoring the 

collection: ATF Form 8620.70. 

Component: Bureau of Alcohol, 

Tobacco, Firearms and Explosives, U.S. 

Department of Justice. 

4. Affected public who will be asked 

or required to respond, as well as a brief 

abstract: Affected Public: Individuals or 

households. The obligation to respond 

is voluntary. Abstract: The Request for 

Interim Security Clearance (ATF F 

8620.70) is used to request approval for 

a candidate for Federal or Contractor 

employment at the Bureau of Alcohol, 

Tobacco, Firearms and Explosives to be 

granted an interim security clearance 

prior to the completion and 

adjudication of the individual’s 

background investigation. The proposed 

information collection (IC) OMB # 

1140–0119 is being revised to remove 

the option for one to delay an interim 

security clearance and to replace it with 

the option for one to decline the risk 

associated with an interim security 

clearance. Additionally, a minor 

revision to the Paperwork Reduction 

Act Notice has been included. 

5. Obligation to Respond: Voluntary. 

6. Total Estimated Number of 

Respondents: 2,000 respondents. 

7. Estimated Time per Respondent: 5 

minutes. 

8. Frequency: Once annually. 

9. Total Estimated Annual Time 

Burden: 167 hrs. 

10. Total Estimated Annual Other 

Costs Burden: $0. 

If additional information is required, 

contact: Darwin Arceo, Department 

Clearance Officer, Policy and Planning 

Staff, Justice Management Division, 

United States Department of Justice, 

Two Constitution Square, 145 N Street 

NE, 4W–218 Washington, DC 20530. 

Dated: October 29, 2024. 

Darwin Arceo, 

Department Clearance Officer for PRA, U.S. 

Department of Justice. 

[FR Doc. 2024–25519 Filed 11–1–24; 8:45 am] 

BILLING CODE 4410–FY–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Exemption Application No. L–12069] 

Proposed Exemption From Certain 

Prohibited Transaction Restrictions 

Involving Boilermakers Western States 

Apprenticeship Fund Located in Page, 

Arizona 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Notice of proposed exemption. 

SUMMARY: This document provides 

notice of the pendency before the 

Department of Labor (the Department) of 

a proposed individual exemption from 

certain of the prohibited transaction 

restrictions of the Employee Retirement 

Income Security Act of 1974 (ERISA). 

This proposed exemption would permit 

the purchase of a parcel of improved 

real property by the Boilermakers 

Western States Apprenticeship Fund 

(the Plan or Applicant) from a local 

union lodge whose members may be 

participants in the Plan. The Plan 

requests the exemption in order to 

continue to utilize the property to carry 

out its training program and its 

administrative duties. 

DATES: 

Exemption date: If granted, the 

exemption will be effective as of the 

date the grant notice is published in the 

Federal Register. 

Comments due: Written comments 

and requests for a public hearing on the 

proposed exemption should be 

submitted to the Department by 

December 19, 2024. 

ADDRESSES: All written comments and 

requests for a hearing should be 

submitted to the Employee Benefits 

Security Administration (EBSA), Office 

of Exemption Determinations, 

Attention: Application No. L–12069, via 

email to e-OED@dol.gov or online 

through https://www.regulations.gov. 

Any such comments or requests should 

be sent by the end of the scheduled 

comment period. The application for 

exemption and the comments received 

will be available for public inspection in 

the Public Disclosure Room of the 

Employee Benefits Security 

Administration, U.S. Department of 


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1 29 CFR part 2570, subpart B (75 FR 66637, 

66644, October 27, 2011). 

2The Summary of Facts and Representations is 

based on the Applicant’s representations provided 

in its exemption application and does not reflect 

factual findings or opinion of the Department, 

unless indicated otherwise. The Department notes 

that availability of this exemption is subject to the 

express condition that the material facts and 

representations made by the Applicant in 

Application L–12069 are true, complete, and 

accurately describe all material terms of the 

transaction(s) covered by the exemption. If there is 

any material change in a transaction covered by the 

exemption, or in a material fact or representation 

described in the application, the exemption will 

cease to apply as of the date of the change. 

3The Department notes that the Taft-Hartley Act 

is commonly known as the Labor Management 

Relations Act of 1947; see 29 U.S.C. 141. 

4ERISA section 3(16)(B) defines the term Plan 

Sponsor to mean in pertinent part . . . (ii) the 

employee organization in the case of a plan 

established or maintained by an employee 

organization, (iii) in the case of a plan established 

or maintained by two or more employers or jointly 

by one or more employers and one or more 

employee organizations, the association, committee, 

joint board of trustees, or other similar group of 

representatives of the parties who establish or 

maintain the plan. . . .’’ 

Labor, Room N–1515, 200 Constitution 

Avenue NW, Washington, DC 20210, 

reachable by telephone at (202) 693– 

8673. See SUPPLEMENTARY INFORMATION

below for additional information 

regarding comments. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Frank Gonzalez of the Department at 

(202) 693–8553. (This is not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: 

Comments: Persons are encouraged to 

submit all comments electronically and 

not to follow with paper copies. 

Comments should state the nature of the 

person’s interest in the proposed 

exemption and how the person would 

be adversely affected by the exemption, 

if granted. Any person who may be 

adversely affected by an exemption can 

request a hearing on the exemption. A 

request for a hearing must state: (1) the 

name, address, telephone number, and 

email address of the person making the 

request; (2) the nature of the person’s 

interest in the exemption and the 

manner in which the person would be 

adversely affected by the exemption; 

and (3) a statement of the issues to be 

addressed and a general description of 

the evidence to be presented at the 

hearing. The Department will grant a 

request for a hearing made in 

accordance with the requirements above 

where a hearing is necessary to fully 

explore material factual issues 

identified by the requestor, and a notice 

of such hearing will be published by the 

Department in the Federal Register. The 

Department may decline to hold a 

hearing if: (1) the request for the hearing 

does not meet the requirements stated 

above; (2) the only issues identified for 

exploration at the hearing are matters of 

law; or (3) the factual issues identified 

in the request can be fully explored 

through the submission of evidence in 

written (including electronic) form. 

Warning: All comments received will 

be included in the public record 

without change and may be made 

available online at https://

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be confidential or 

information whose disclosure is 

restricted by statute. If you submit a 

comment, EBSA recommends that you 

include your name and other contact 

information in the body of your 

comment, but DO NOT submit 

information that you consider to be 

confidential, or otherwise protected 

(such as a Social Security number or an 

unlisted phone number) or confidential 

business information that you do not 

want publicly disclosed. If EBSA cannot 

read your comment due to technical 

difficulties and cannot contact you for 

clarification, EBSA might not be able to 

consider your comment. 

Additionally, the https://

www.regulations.gov website is an 

‘‘anonymous access’’ system, which 

means EBSA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an email directly 

to EBSA without going through https:// 

www.regulations.gov, your email 

address will be automatically captured 

and included as part of the comment 

that is placed in the public record and 

made available on the internet. 

Proposed Exemption 

The Department is considering 

granting an exemption under the 

authority of ERISA Section 408(a) and 

in accordance with the Department’s 

exemption procedures regulation.1 If the 

proposed exemption is granted, the Plan 

would be permitted to purchase an 

improved real estate property parcel 

(the Property) from the ‘‘Navajo Nation’’ 

Lodge 4 of the International 

Brotherhood of Boilermakers, Iron Ship 

Builders, Blacksmith, Forgers, and 

Helpers (Lodge 4), provided that the 

Plan meets the conditions set forth in 

section III. 

This proposed exemption would 

provide relief from certain restrictions 

set forth in ERISA sections 406(a)(1)(A) 

and (D), and 406(b)(1) and (2). However, 

this proposed exemption would not 

provide relief from any other violation 

of law. 

Benefits of the Exemption: As 

described in more detail below, the 

Department is proposing relief based, in 

part, on the Applicant’s representations 

that purchase of the property would 

avoid significant time and cost of 

relocating the Plan’s training program to 

an alternative location (as the property 

has already been modified at the Plan’s 

own expense for its particular training 

purposes). 

Summary of Facts and 

Representations 2

1. The Plan is an apprenticeship 

program trust fund created to provide 

training benefits to individuals engaged 

in the boilermaker construction trade. 

2. The Plan is a multiemployer plan 

created pursuant to collective 

bargaining agreements (under the TaftHartley Act of 1947) 3 between signatory 

contractors/employers (the Employers) 

and the International Brotherhood of 

Boilermakers, Iron Ship Builders, 

Blacksmiths, Forgers, and Helpers (the 

Boilermakers Union). As of December 

31, 2023, the approximate aggregate fair 

market value of the Plan’s total assets 

was $12,611,589. As of May 17, 2024, 

there are 369 apprentices currently 

active in the Plan’s apprenticeship 

program. The program graduated 84 

apprentices in 2022, 65 in 2023, and 51 

as of May 17, 2024. The Plan admits 

apprentices on a rolling basis. There 

have been 1,233 apprentices 

participating in the Plan’s training from 

May 13, 2019, through May 13, 2024. 

3. The Plan provides training and 

education to eligible participants 

located in the following states: Alaska, 

Arizona, California, Colorado, Hawaii, 

Idaho, Montana, Nevada, New Mexico, 

Oregon, Utah, Washington, and 

Wyoming (the Western States Area). 

4. The Plan is sponsored by the 

Boilermakers National Apprenticeship 

Program (the BNAP).4 The BNAP also is 

known as the National Joint 

Apprenticeship and Training Program, 

sponsors apprenticeship programs in 

four different geographical areas, 

including the Western States Area. 

5. A board of trustees—the 

Boilermakers National Apprenticeship 

Board—administers the Plan (the Board 

of Trustees). The Board of Trustees 

consists of equal representation from 

locals of the Boilermakers Union (the 

Union Trustees) and signatory 

contractors/employers (the Employer 

Trustees). The Board of Trustees has 

discretion over the Plan’s assets, 

including over the investment of such 

assets. 

6. The Plan receives funding through 

collectively bargained contributions 

from contributing employers and grants, 


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5The Plan maintains an administrative office in 

Page, Arizona, three miles away from the Property, 

that it began leasing from Marquis Realty LLC, an 

unrelated party to the Plan, on July 1, 2014 (the 

Leased Office). 

6The Applicant represents that the Union 

Trustees recused themselves from the vote to enter 

into the Proposed Transaction with Lodge 4 on 

behalf of the Plan. The recusal is described in more 

detail below. 

7The Department understands that the Plan 

would financially benefit from the Proposed 

Transaction (and indirectly benefit the Plan’s 

participants and beneficiaries), because it (1) would 

not need to pay for the removal of the Plan’s 

specialized air venting system from the Training 

Facility (the venting system is explained further 

below) and (2) could relocate its administrative 

office within the Property instead of paying for the 

Leased Office. The Applicant also stated that 

participants would benefit by having the ability to 

visit the Plan’s administration office and training 

facilities at the same location after the office is 

moved from the Leased Office to the Property. 

8Matters pertaining to services being provided by 

the independent fiduciary and independent 

appraiser with respect to the Proposed Transaction, 

including their qualifications and independence, 

are explained further below. 

9As explained further below, a qualified 

independent fiduciary notes that the Plan intends 

to finance the additional $460,000 but has received 

a larger commitment as a precaution. 

among other income sources provided 

under the Plan’s governing documents. 

According to the Plan’s governing 

documents, the Plan’s assets may be 

used to provide apprenticeship and 

training benefits and to finance the 

operation and administration of such 

apprenticeship and training benefits 

within the Western States Area. The 

Plan provides benefits in two ways: 

through a regional training center, the 

JG Cooksey Training Center in Salt Lake 

City, Utah; and through subsidizing 

apprenticeship and training programs 

maintained by locals of the 

Boilermakers Union within the Western 

States Area. As further explained below 

with respect to the reimbursement 

policy, the Plan subsidizes 

apprenticeship and training programs of 

local Boilermakers Union lodges by 

annually allocating funds to such lodges 

based on the number of apprentices and 

journeypersons in each lodge and/or 

reimbursing the lodges’ training 

expenses, including equipment and 

supplies, student expenses (tuition/ 

lodging/meals/mileage), instructor 

expenses (wages/benefits/mileage), and 

tuition costs for apprentices or 

journeypersons to attend regional or 

national training centers, or other 

approved training facilities. 

7. During a five-year period ending on 

February 11, 2022, the Plan nearly 

doubled its apprentice numbers, and the 

participation rate continued to increase 

as of May 17, 2024, as the demand for 

boilermakers in the Western States Area 

continues to rise. Accordingly, the Plan 

is interested in opening a new regional 

training center and is seeking to 

purchase an improved real estate 

property parcel (the Property) from 

Lodge 4, a labor union, located in Page, 

Arizona, that is affiliated with the 

Boilermakers Union. Lodge 4 is a 

separate legal entity from both the 

Boilermakers Union and the other 

lodges of the Boilermakers Union. The 

Board of Trustees does not currently 

have any Union Trustees who were 

appointed by Lodge 4. Rather, the Union 

Trustees serving on the Plan’s Board of 

Trustees are appointed either by the 

Boilermakers Union or other lodges of 

the Boilermakers Union (e.g., 

Boilermakers Lodge 502). 

8. The Property. The Property is an 

improved real estate parcel located at 

294 Cowboy Ray Road, Page, Arizona. 

The Property’s site is 1.678 acres, with 

two office/warehouse buildings. The 

smaller of the two buildings has 1,365 

square feet of office area and 975 square 

feet of warehouse area, for a total of 

2,340 square feet. The larger of the two 

buildings has 1,626 square feet of office/ 

classroom area and 3,374 square feet of 

warehouse area, for a total of 5,000 

square feet. 

9. As discussed further below, the 

Plan’s apprentices currently use the 

Property’s buildings as training facilities 

(the Training Facility). The Applicant 

represents that this use of the Training 

Facility is essential for the Plan to fulfill 

its purpose of providing education and 

training opportunities to its apprentices. 

10. The Applicant represents that the 

Property has been modified to carry out 

the purposes of the Plan. According to 

the Applicant, the Property is ideally 

situated to be a regional training facility 

for boilermaker apprentices and 

journeypersons, and the Facility is 

ideally suited for the Plan’s purposes. 

The Property also has administrative 

space for the Plan’s headquarters.5

11. Lodge 4 has decided to move and 

no longer desires to operate the Training 

Facility. The Union Trustees recused 

themselves from voting with respect to 

the Plan’s decision to enter into the 

Proposed Transaction, and the Plan’s 

Employer Trustees 6 determined it 

would be in the interest of the Plan to 

purchase the Property because: (a) the 

Training Facility is already suited for 

the needs of the Plan; (b) the purchase 

of the Property would allow the Plan to 

maintain the Training Program at the 

Training Facility notwithstanding Lodge 

4’s decision to terminate operating the 

Training Facility; (c) using the Property 

to create a regional training facility 

would meet the increasing demand for 

the training of participants, including 

apprentices within the Western States 

Area; (d) the purchase of the Property 

from Lodge 4 would allow the Plan to 

pay the Property’s fair market value 

without incurring any commission costs 

or other expenses in connection with 

the purchase; and (e) the Plan’s 

continued use of the Property for 

training purposes would provide 

additional benefits to participants and 

provide other financial benefits to the 

Plan.7

12. On January 20, 2022, the 

Employer Trustees gave their approval 

for the Plan to proceed with the 

purchase of the Property (the Proposed 

Transaction), subject to the 

Department’s grant of this proposed 

exemption. The Plan intends to 

purchase the Property from Lodge 4 

within ninety (90) days following the 

Department’s grant of a final exemption, 

should such an exemption be granted. 

The Applicant represents that the Plan 

considered other possible locations and 

properties for a regional center, but after 

consulting with various service 

providers, it ultimately determined that 

purchasing the Property owned by 

Lodge 4 was the most appropriate given 

the Plan’s goals, as explained below. 

13. In connection with the Proposed 

Transaction, the Plan would pay the 

lesser of: (i) the fair market value of 

$920,000 identified in the appraisal 

conducted on April 1, 2021; and (ii) the 

updated appraised fair market value of 

the Property as determined by the 

qualified independent appraiser on the 

purchase date. 

14. Lodge 4 and the Plan will each 

pay half of the costs associated with the 

proposed exemption, including but not 

limited to fees for qualified independent 

fiduciary services, qualified 

independent appraiser services, and 

legal fees for preparing the Plan’s 

application to the Department 

requesting this proposed exemption.8

15. The Plan intends to make a 

$460,000 cash down payment to Lodge 

4 (approximately 4.7 percent of the 

Plan’s total assets) and will finance the 

remaining $460,000 of the purchase 

price through a third-party bank (as 

further described below). The Plan’s 

estimates that the total cost to purchase 

the Property will represent 

approximately 9.4 percent of the Plan’s 

total assets. 

16. On November 1, 2021, the Plan 

executed a Term Loan Commitment 

Letter with the Bank of Labor, a bank 

located in Kansas City, Kansas, for 

$600,000 (approximately 6.1 percent of 

the Plan’s total assets).9 The Department 

understands that the Bank of Labor may 

be partly owned by the Boilermakers 

Union. In order to ensure that the Plan 


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10ERISA section 3(14)(D) defines, in part, the 

term party in interest to an employee benefit plan 

as ‘‘an employee organization any of whose 

members are covered by such plan.’’ 

11The Department notes that ‘‘the prohibitions of 

section 406(b) supplement the other prohibitions of 

section 406(a) of [ERISA] by imposing on parties in 

interest who are fiduciaries a duty of undivided 

loyalty to the plans for which they act. These 

prohibitions are imposed upon fiduciaries to deter 

them from exercising the authority, control, or 

responsibility which makes such persons 

fiduciaries when they have interests which may 

conflict with the interests of the plans for which 

they act. In such cases, the fiduciaries have interests 

in the transaction which may affect the exercise of 

their best judgment as fiduciaries.’’ See 29 CFR 

2550.408b–2(e)(1). 

12The Applicant notes that the Reimbursement 

Policy also covers Lodge 4’s expense of sending its 

affiliated apprentices to off-site locations for 

training purposes. 

13Whether the Reimbursement Policy complies 

with the requirements of ERISA section 408(b)(2) is 

an inherently factual inquiry that is beyond the 

scope of this proposed exemption and with respect 

to which the Department offers no opinion. 

14The costs for these pieces of equipment are not 

included as part of the Property’s value appraisal. 

will obtain financing for the Proposed 

Transaction, if any, on arms’ length 

terms, the proposed exemption 

prohibits the Plan from financing the 

acquisition of the Property with any 

bank that has any pecuniary interest in, 

or is owned, managed, or controlled in 

any manner by a party in interest with 

respect to the Plan as defined in ERISA 

section 3(14). 

17. ERISA Prohibited Transaction 

Analysis. Lodge 4 is an employee 

organization whose members are 

covered by the Plan; therefore, it is a 

party in interest to the Plan pursuant to 

ERISA section 3(14)(D).10

18. ERISA section 406(a)(1)(A) 

prohibits a plan fiduciary from causing 

the sale or exchange, or leasing, of 

property between a plan and a party in 

interest. ERISA section 406(a)(1)(D) 

provides that a plan fiduciary shall not 

cause the plan to engage in a transaction 

if (1) that fiduciary knows or should 

know that such transaction constitutes a 

direct or indirect transfer of any of the 

plan’s assets to a party in interest or (2) 

would result in the plan’s assets being 

used by or for the benefit of a party in 

interest. 

19. The Plan’s purchase of the 

Property from Lodge 4 in exchange for 

the Plan’s funds would constitute a 

prohibited sale and transfer of Plan 

assets in violation of ERISA sections 

406(a)(1)(A) and (D), respectively. 

20. Additionally, ERISA section 

406(b)(1) prohibits a plan fiduciary from 

dealing with a plan’s assets ‘‘. . . in his 

own interest or for his own account.’’ 

ERISA section 406(b)(2) prohibits a plan 

fiduciary ‘‘in his individual or in any 

other capacity [from acting] in any 

transaction involving the plan on behalf 

of a party (or represent a party) whose 

interests are adverse to the interests of 

the plan or the interests of its 

participants or beneficiaries.’’ 

21. The Union Trustees may have an 

interest in benefitting Lodge 4, a party 

in interest to the Plan, because Lodge 4 

is also a Boilermakers Union lodge, and 

as such, it is affiliated with the 

Boilermakers Union. Although the 

Applicant represents that the Union 

Trustees ‘‘recused’’ themselves from 

voting on the Plan’s decision to enter 

into the Proposed Transaction, whether 

the Union Trustees’ recusal from any 

aspects of the Proposed Transaction 

negates a violation of ERISA section 

406(b)(1) or (2), involves an inherently 

factual determination that is beyond the 

scope of this proposed exemption. 

Therefore, the Department cannot 

determine from the record whether the 

Union Trustees sufficiently recused 

themselves from engaging in the 

deliberations regarding of the Proposed 

Transaction or using their positions to 

influence the Employer Trustees’ 

decision to approve the Proposed 

Transaction in order to determine 

definitively that there was no violation 

of ERISA section 406(b)(1) or (b)(2). To 

the extent the Union Trustees exercised 

any authority, control, or responsibility 

that make them a fiduciary to cause the 

Plan to engage in the Proposed 

Transaction, they would have violated 

ERISA section 406(b)(1) and (b)(2), 

because the Proposed Transaction 

would benefit Lodge 4, an entity in 

which the Union Trustees have an 

interest and involve Union Trustees 

acting on behalf of both the Plan and 

Lodge 4.11

22. Applicant’s Representations 

Regarding the Merits of the Proposed 

Exemption. The Applicant represents 

that the Proposed Transaction would 

benefit the Plan because the Training 

Facility is currently operated by Lodge 

4 to conduct trainings and the Plan 

would not have to make any 

improvements or modifications for the 

Plan to continue using it. The Applicant 

explains that Lodge 4 currently provides 

training to Plan participants at the 

Training Facility in accordance with a 

reimbursement policy between the Plan 

and Lodge 4, whereby the Plan 

reimburses Lodge 4 only for the direct 

costs that Lodge 4 incurs in conducting 

training (the Reimbursement Policy).12

According to the Applicant, the Plan 

relies on ERISA Section 408(b)(2) to 

operate its Reimbursement Policy. The 

Plan may terminate this arrangement 

with Lodge 4 at any time with no 

penalty to the Plan and without notice 

to Lodge 4.13

23. The Applicant represents that the 

Plan has also invested nearly $600,000 

in equipment at the Training Facility to 

equip 24 welding stations, including 

installing a $250,000 custom ventilation 

system designed to remove noxious 

fumes that are produced by the welding 

machines. The Applicant states that the 

Plan still owns this equipment, which is 

only used in connection with the 

training of participants by Lodge 4 in 

connection with the provision of 

services to the Plan, described in more 

detail below.14

24. The Applicant represents that the 

Proposed Transaction would benefit the 

Plan because Lodge 4 intends to 

terminate its involvement with the 

Training Facility. If Lodge 4 no longer 

runs the Training Facility, the Plan can 

longer provide training there. 

Furthermore, the Training Facility is 

currently equipped with Plan-purchased 

equipment that is used to provide 

training for participants. If Lodge 4 

terminates its involvement with the 

Training Facility and/or sells the 

Property, the Plan would need to 

remove and relocate the equipment at 

significant time and expense. 

25. The Applicant represents that the 

Proposed Transaction would benefit the 

Plan because of the Property’s location. 

The Property is centrally located in the 

Southern portion of the Western States 

Area with convenient access from New 

Mexico, Arizona, Southern Nevada, and 

Southern California. The Property also 

is located on the edge of the Navajo 

Nation reservation, which has 

traditionally been a large source of 

apprenticeship participants in that area, 

making the Property a convenient 

location to a segment of current and 

future apprenticeship participants. 

26. The Applicant represents further 

that the Plan wants to create a regional 

training center on the Property due to 

the transient nature of the boilermaker 

trade and industry. The Applicant 

explains that journeypersons and 

apprentices travel based on where the 

projects are located, including traveling 

outside the boundary of their home 

lodge of the Boilermakers Union. As 

such, the location of the Boilermakers 

Union lodges and employers are less 

important than the location of the 

projects. Larger projects may involve 

journeymen and apprentices from 

multiple Boilermakers Union lodges. 

The Training Facility will be available 

to all apprentices in the Western States 

Area, regardless of their Boilermakers 

Union lodge affiliation. While there are 

other training facilities across the 13- 


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state region that the Plan covers, there 

is a continued need to have training 

facilities accessible across the region. 

27. The Applicant represents further 

that the Proposed Transaction would 

benefit the Plan, because the Property 

will become the site for the Plan’s 

administrative headquarters. If the Plan 

moves its administrative headquarters to 

the Property, it will no longer need the 

Leased Office and will avoid incurring 

the rental cost for that office. 

Additionally, combining the Training 

Facility with the Plan’s administrative 

offices will provide closer access for the 

staff to monitor the Training Facility 

and for the Plan’s apprenticeship and 

journeyperson participants to interact 

with the Plan’s administrative staff. 

28. The Applicant represents that the 

Plan would also benefit from the 

Proposed Transaction because the 

Property provides flexibility for 

expansion as the number of Boilermaker 

apprentices continues to grow and 

significant space for: (a) large training 

sessions where there are numerous 

vehicles and recreational vehicles 

utilized by participants; (b) outdoor 

training components such as training 

involving a rigging tower; and (c) 

expansion of training facilities and/or 

demonstrations. 

29. The Property’s Appraisal. The 

Plan retained the services of Accurity 

Valuation—Morley & McConkie L.C. 

(AVMM) to appraise the Property 

(Qualified Independent Appraiser). Mr. 

Garrett Hanning (Hanning) of AVMM 

authored an appraisal report dated May 

17, 2021 (Appraisal Report). Hanning is 

a licensed Certified General Appraiser 

specializing in commercial appraisals in 

the states of Arizona and Utah. Hanning 

represents that the Appraisal Report is 

being submitted to the Department as 

part of the Applicant’s request for the 

proposed exemption and that he has no 

bias with respect to the Property, the 

Plan, or Lodge 4, which may influence 

the Property’s appraisal. AVMM’s 

current revenue that is derived from any 

party in interest involved in the 

proposed transaction or its affiliates is 

0.04%, and his engagement letter 

contains no provisions providing for his 

reimbursement or indemnification by 

any party for violations of applicable 

law or of his contractual obligations 

related to his work, or waivers of rights, 

claims or remedies of the Plan or its 

participants and beneficiaries under 

applicable laws against Hanning or 

AVMM with respect to their work on 

the Proposed Transaction, and the terms 

of the proposed exemption prohibit any 

such arrangements, as described in more 

detail below. 

30. In determining the Property’s fair 

market value, Hanning utilized two 

methods: (a) the cost approach; and (b) 

the sales comparison approach, and he 

applied primary weight to the sales 

comparison approach given the owneroccupied nature of the Property. Based 

on his analysis, Hanning concluded that 

the Property’s fair market value was 

$920,000 as of April 1, 2021. 

31. During the pendency of the 

Applicant’s request for this proposed 

exemption, the Applicant submitted to 

the Department an updated report from 

the Qualified Independent Appraiser, 

dated July 28, 2022, indicating that no 

changes to the Property’s structures 

have taken place that would change the 

Property’s value reflected in the 

Appraisal Report dated April 1, 2021. 

32. The Applicant states that the fees 

for the April 1, 2021 Appraisal Report, 

which are shared equally between the 

Plan and Lodge 4, totaled $3,750. 

Furthermore, in the event this proposed 

exemption is granted, the conditions for 

relief require the appraisal to be 

updated by the Qualified Independent 

Appraiser to reflect the fair market value 

of the Property on the Transaction’s 

closing date. The Plan does not expect 

that the cost to update the appraisal will 

exceed $3,750. 

33. The Independent Fiduciary. The 

Plan retained the services of the Wagner 

Law Group to serve as the Plan’s 

independent fiduciary (Wagner or the 

Independent Fiduciary) with respect to 

the Proposed Transaction, pursuant to 

Wagner’s engagement letter dated 

November 3, 2020 (Wagner’s 

Engagement Letter). Wagner represents 

that it has significant experience with 

serving as the appointed independent 

fiduciary at the request of the 

Department, federal courts, bankruptcy 

trustees, and ERISA plan fiduciaries. 

34. Wagner acknowledged that it 

understands its duties and 

responsibilities under ERISA in acting 

as the Independent Fiduciary, and will 

determine whether, with the assistance 

of one or more independent appraisals, 

the proposed real estate purchase 

transaction would be in the interests of 

the Plan and the Plan’s participants and 

beneficiaries and protective of their 

rights. Wagner’s Engagement Letter 

contains no provisions that indemnify 

Wagner for any failure to adhere to its 

contractual obligations or to state or 

Federal laws applicable to its work 

including ERISA or that waives any of 

the Plan’s rights, claims, or remedies of 

the Plan under ERISA, State, or Federal 

law against Wagner with respect to the 

proposed transaction. 

35. Wagner represents that the 

percentage of its current revenue that is 

derived from any party in interest 

involved in the Proposed Transaction is 

0.13%. Furthermore, Wagner represents 

that it has no current or future interest 

in the outcome of the Proposed 

Transaction. Its sole financial interest in 

the transaction is the receipt of its fees 

for acting as the Independent Fiduciary. 

36. Wagner states that the Proposed 

Transaction will be implemented only 

after the Department grants a final 

exemption and the relevant conditions 

are satisfied, and Wagner determines 

that the Proposed Transaction would be 

in the interests of the Plan and of its 

participants and beneficiaries. In this 

regard, Wagner will prepare a statement 

of the reasons on which its ‘‘best 

interest’’ determination is based and 

will submit the statement to the 

Department (the Statement). Before the 

closing of the Proposed Transaction, 

Wagner will ensure that all of the 

preconditions to the real estate purchase 

are completed and will monitor the 

transaction until and coincident with 

the transaction’s closing. The conditions 

for relief in the proposed exemption 

require Wagner to have the authority to 

take all appropriate actions to safeguard 

the Plan’s interests and the interests of 

the Plan’s participants and beneficiaries 

and to: 

(i) Monitor the Proposed Transaction 

on the Plan’s behalf on a continuing 

basis until the earlier of the closing or 

the date that the Proposed Transaction 

is terminated; 

(ii) Ensure that the Proposed 

Transaction remains in the interests of 

the Plan and of the Plan’s participants 

and their beneficiaries and, if not, take 

any appropriate actions available under 

the particular circumstances; and 

(iii) Ensure compliance with all of the 

exemption conditions and obligations 

imposed on any party dealing with the 

Plan with respect to the Proposed 

Transaction. 

37. The Independent Fiduciary’s 

Opinion. On February 10, 2022, Wagner 

issued its report to the Plan regarding 

the Proposed Transaction (the IF 

Report). The IF Report provided 

Wagner’s opinion that the Plan’s 

proposed purchase of the Property for a 

price of the lesser of $920,000 or the 

Property’s appraised value on the date 

of sale, under the terms and conditions 

described herein, would be in the best 

interest and protective of the rights of 

the Plan’s participants and beneficiaries. 

38. According to the IF Report, the 

Independent Fiduciary reviewed all the 

particulars of the Property and existing 

Training Facility, including the 

Independent Appraisal, the terms of the 

Real Estate Purchase and Sale 

Agreement between the Plan and Lodge 


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15The Department notes that this is a summary 

of the conditions intended for the convenience of 

a reader; however, the governing conditions for the 

Proposed Transaction are those reflected in section 

III of the proposed exemption. 

16ERISA section 410 provides, in part, that 

‘‘except as provided in ERISA Sections 405(b)(1) 

and 405(d), any provision in an agreement or 

instrument which purports to relieve a fiduciary 

from responsibility or liability for any 

responsibility, obligation, or duty under this part 

[meaning part 4 of ERISA] shall be void as against 

public policy.’’ 

4 to buy the Property (the Purchase 

Contract) and determined that the 

Property’s $920,000 purchase price is 

appropriate. 

39. The Independent Fiduciary 

determined that the Property’s location 

is convenient for the Plan’s participants 

as well as the Plan’s staff who will 

benefit from affordable housing in close 

proximity to the Property. As described 

in the IF Report, the purchase of the 

Property will further the Plan’s longterm goals to stabilize the Plan’s 

expenses with a regional center in this 

area. The IF Report provides that the 

Property’s overall size appears to 

present the opportunity for expansion 

with minimal difficulty or hardship for 

the Plan and its participants as the 

number of Boilermakers Union members 

increase. The IF Report notes further 

that the Property has existing buildings 

with considerable life expectancy that 

are particularly suited to the Plan’s 

intended use. 

40. The IF Report provides that the 

Plan already owns the training 

equipment currently housed at the 

Training Facility, and removing and 

relocating this equipment to another 

location would be extremely costly. The 

equipment on the site will provide the 

Plan with significant start-up costs 

savings as compared to purchasing a 

comparable facility and having to pay to 

relocate this equipment or purchase 

new equipment to furnish the new 

facility. Wagner opines that the Property 

provides a turn-key facility, ready 

immediate occupancy, and use for the 

Plan’s intended purposes. 

41. The Independent Fiduciary notes 

that the Plan will save money by using 

the Property to house its administrative 

office instead of paying rent for the 

Leased Office and will benefit the Plan 

by locating its administrative offices on 

the Property where administrative staff 

will be able to monitor the Training 

Facility and interact with participants in 

connection with administrative matters. 

42. The IF Report describes the 

Independent Fiduciary’s review and 

approval of the methodology used by 

the Independent Appraiser. Wagner 

opined that, based on the intended use 

of the Property, it would be prudent for 

the Plan to rely on the appraised value 

as of April 1, 2021, subject to change 

pending the updated appraisal at date of 

purchase. 

43. Finally, the Independent 

Fiduciary examined the Plan’s ability to 

buy and finance the purchase of the 

Property, including the percent of the 

purchase price to total plan assets, any 

prospective earnings or savings from the 

proposed purchase, including the 

difference between the current lease 

arrangement and the proposed purchase 

of the Property, and the Plan’s potential 

liabilities. The Independent Fiduciary 

determined that the Plan’s use of its 

assets for the proposed real estate 

purchase of the Property will not 

negatively impact the overall financial 

health of the Plan and its programs. In 

this regard, the IF Report notes that the 

Plan receives continual stable funding 

through collectively bargained 

contributions from contributing 

employers to provide the benefits of its 

programs and subsidize training for the 

local Boilermaker lodges in the Western 

Region. According to the Plan, the 

monthly mortgage payments on the 

$460,000 loan will be less than $10,000. 

The Plan’s average monthly income is 

above $200,000. Therefore, the 

Independent Fiduciary determined that 

the mortgage for the amount of $460,000 

will not negatively affect the Plan’s 

operating budget. In addition, the Plan 

will be relieved of incurring the 

additional rental expense to maintain its 

existing office space. 

44. Protective Conditions. In addition 

to the conditions mentioned above, the 

exemption, if granted, requires the 

parties’ adherence to the protective 

conditions that are summarized 

below.15

45. The Proposed Transaction is a 

one-time transaction in which the Plan 

would make a $460,000 cash down 

payment and obtain a loan for the 

remaining balance of the purchase price 

that could not exceed $920,000. The 

loan’s monthly payments could not 

exceed $10,000 and its collateral would 

be a first mortgage lien and assignment 

of the lease on the Property. The Plan 

must pay the lesser of the Property’s fair 

market value of $920,000 as appraised 

on April 1, 2021, and an updated 

appraised value to be determined on the 

date of purchase, subject to cost sharing 

allocations regarding the cost for this 

exemption. The updated appraisal must 

be provided to the Department and will 

be made a part of the administrative 

record for this exemption application. 

46. The terms and conditions of the 

Proposed Transaction must be at least as 

favorable to the Plan as the terms and 

conditions the Plan would have 

received in an arm’s length transaction 

between unrelated and independent 

parties. 

47. The Proposed Transaction must 

not be part of an agreement, 

arrangement, or understanding designed 

to benefit Lodge 4. 

48. No later than 30 days after the 

Transaction is completed, the 

Independent Fiduciary must submit to 

the Department a written certification 

that all of the conditions of the final 

exemption have been met and must 

submit the Statement to the Department. 

49. The Independent Fiduciary must: 

(a) Determine that the Proposed 

Transaction is in the interest of and 

protective of the rights of the Plan and 

its participants and beneficiaries; 

(b) Determine whether it is prudent 

for the Plan to proceed with the 

Proposed Transaction; 

(c) Review, negotiate, and approve the 

terms and conditions of the Proposed 

Transaction; 

(d) Represent the Plan’s interests in 

connection with the Proposed 

Transaction, including monitoring the 

parties’ compliance with terms of the 

contract of sale and the closing contract, 

enforcing the Plan’s rights under the 

contract of sale and the closing contract, 

and ensuring the satisfaction of all 

preconditions for the Plan’s purchase of 

the Property, including the terms of the 

proposed financing from an unrelated 

third-party bank; 

(e) Monitoring to ensure that all 

exemption conditions are met and take 

whatever actions are necessary to 

protect the rights of the Plan and its 

participants and beneficiaries in the 

Proposed Transaction; 

(f) Review the Appraisal Report and 

confirm that the underlying 

methodology is reasonable and accurate 

such that the valuation of the Property 

was reasonably derived; 

(g) Ensure that the Appraisal Report is 

based on complete, current, and 

accurate information; the appraiser was 

prudently selected; the methodology 

used by the Qualified Independent 

Appraiser is consistent with sound 

valuation principles; and that it is 

reasonable under the circumstances to 

rely upon the Appraisal Report, as 

updated, to determine the fair market 

value of the Property as of the date of 

the transaction; and 

(h) Not have entered into, or must not 

enter into, any agreement or instrument 

that violates either ERISA Section 410, 

or the Department’s Regulations 

codified at 29 CFR 2509.75–4; 16

50. Furthermore, the Independent 

Fiduciary must not have entered into, 

and must not enter into, any agreement, 


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arrangement, or understanding that 

includes any provision that provides for 

the direct or indirect indemnification or 

reimbursement of the Independent 

Fiduciary by the Plan or other party for 

any failure to adhere to its contractual 

obligations or to state or Federal laws 

applicable to the Independent 

Fiduciary’s work; or waives any rights, 

claims, or remedies of the Plan under 

ERISA, state, or Federal law against the 

Independent Fiduciary with respect to 

the Proposed Transaction; 

51. The Qualified Independent 

Appraiser must not have entered into, 

and must not enter into, any agreement, 

arrangement, or understanding that 

includes any provision that provides for 

the direct or indirect indemnification or 

reimbursement of the Qualified 

Independent Appraiser by the Plan or 

any other party for any failure to adhere 

to its contractual obligations or to state 

or Federal laws applicable to the 

Qualified Independent Appraiser’s 

work. The Plan also must not waive any 

rights, claims or remedies of the Plan or 

its participants and beneficiaries under 

ERISA, the Code, or other Federal and 

state laws against the Qualified 

Independent Appraiser with respect to 

the Proposed Transaction. 

52. The Employer Trustees but not the 

Union Trustees must determine that the 

Proposed Transaction is prudent and in 

the Plan’s interest to proceed with the 

Transaction; the Union Trustees cannot 

participate or in any way influence the 

Employer Trustees’ determination. 

Lastly, all the material facts and 

representations set forth in the 

Summary of Facts and Representations 

must be true and accurate at all times. 

Statutory Findings 

53. ‘‘Administratively Feasible.’’ The 

Department has tentatively determined 

that the proposed exemption is 

administratively feasible for the 

Department because it is a one-time 

transaction requiring strict adherence to 

fiduciary conduct that is subject to 

conditions designed to safeguard the 

Plan, as overseen by an Independent 

Fiduciary responsible for ensuring that 

all of the conditions of the exemption 

have been met. 

54. ‘‘In the interests of.’’ The 

Department has tentatively determined 

that the proposed exemption is in the 

Plan’s and participants’ and 

beneficiaries’ interest because Lodge 4 

intends to terminate operating the 

Training Facility and doing so would 

require the Plan to move its training 

programs and equipment at great 

expense, and the Plan would need to 

find new suitable property to conduct 

its apprenticeship training goals. The 

Proposed Transaction, however, would 

permit the Plan to acquire the Property, 

thereby continuing utilizing the 

Training Facility to provide adequate 

training, and avoid moving its 

specialized training equipment and air 

filtration system. The Proposed 

Transaction would also permit the Plan 

to terminate its Leased Office space, 

thereby saving additional expenses and 

use the Property to expand its Training 

Program to create a regional training 

center. 

55. ‘‘Protective of.’’ The Department 

has tentatively determined that the 

proposed exemption is protective of the 

Plan’s participants and beneficiaries 

because the Independent Fiduciary has 

reviewed the terms of the Proposed 

Transaction and determined that the 

purchase of the Property under the 

given terms and conditions is prudent 

and in the best interest of the Plan and 

its participants and beneficiaries. 

Among other things, the Independent 

Fiduciary will monitor the Proposed 

Transaction to ensure that the Plan will 

acquire the Property at a price that will 

not be greater than the fair market value 

as determined by the Qualified 

Independent Appraiser. Additionally, 

the Independent Fiduciary will 

continue to oversee the Proposed 

Transaction, including the services to be 

provided by the Qualified Independent 

Appraiser, and the Proposed 

Transaction will be subject to specific 

conditions aimed at protecting the rights 

of Plan participants and beneficiaries. 

Notice to Interested Persons 

Those persons who may be interested 

in the publication in the Federal 

Register of the notice of proposed 

exemption (the Notice) include 

participants and beneficiaries of the 

Plan and participants and beneficiaries 

of the Plan. The Applicants will provide 

notification to interested persons by 

electronic mail, and first-class mail 

within fifteen (15) calendar days of the 

date of the publication of the Notice in 

the Federal Register. The mailing will 

contain a copy of the Notice, as it 

appears in the Federal Register on the 

date of publication, plus a copy of the 

Supplemental Statement, as required, 

pursuant to 29 CFR 2570.43(a)(2), which 

will advise the interested persons of 

their right to comment and to request a 

hearing. 

The Department must receive all 

written comments and requests for a 

hearing no later than forty-five (45) days 

from the date of the publication of the 

Notice in the Federal Register. 

All comments will be made available 

to the public. 

Warning: Do not include any 

personally identifiable information 

(such as name, address, or other contact 

information) or confidential business 

information that you do not want 

publicly disclosed. All comments may 

be posted on the internet and can be 

retrieved by most internet search 

engines. 

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 ERISA 

section 408(a) and/or Code section 

4975(c)(2) does not relieve a fiduciary or 

other party in interest or disqualified 

person from certain other provisions of 

ERISA and/or the Code, including any 

prohibited transaction provisions to 

which the exemption does not apply 

and the general fiduciary responsibility 

provisions of ERISA section 404, which, 

among other things, require a fiduciary 

to discharge their duties respecting the 

plan solely in the interest of the plan 

and its participants and beneficiaries 

and in a prudent manner in accordance 

with ERISA section 404(a)(1)(B); nor 

does it affect the requirement of Code 

section 401(a) that the plan must 

operate for the exclusive benefit of the 

employees of the employer maintaining 

the plan and their beneficiaries; 

(2) Before an exemption may be 

granted under ERISA section 408(a) 

and/or Code section 4975(c)(2), the 

Department must find that the 

exemption is administratively feasible, 

in the interests of the plan and of its 

participants and beneficiaries, and 

protective of the rights of participants 

and beneficiaries of the plan; 

(3) The proposed exemption, if 

granted, would be supplemental to, and 

not in derogation of, any other 

provisions of ERISA and/or the Code, 

including statutory or administrative 

exemptions and transitional 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 

(4) The proposed exemption, if 

granted, would be subject to the express 

condition that the material facts and 

representations contained in the 

application are true and complete at all 

times and that the application 

accurately describes all material terms 

of the transactions which are the subject 

of the exemption. 

Proposed Exemption 

Section I. Definitions 

(a) The term ‘‘Qualified Independent 

Fiduciary’’ means the Wagner Law 


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Group, and any of its employees that 

provide any fiduciary service to the Plan 

in respect to this proposed exemption; 

or such other ‘‘qualified independent 

fiduciary’’ as defined under 29 CFR part 

2570, subpart B, as updated from time 

to time. 

(b) The term ‘‘Qualified Independent 

Appraiser’’ means Accurity Morley & 

McConkie, LC, and any of its employees 

that provide any appraisal related 

service to the Plan in connection with 

this proposed exemption. 

(c) The term ‘‘Mortgage Loan’’ means 

a mortgage loan from an independent, 

third-party bank consisting of a five-year 

term with payments based on 20-year 

amortization, ballooning at maturity, or 

such other mortgage loan prudently 

entered into by the Independent 

Fiduciary on behalf of the Plan. 

Section II. Transactions 

The restrictions of ERISA Sections 

406(a)(1)(A), (D), and 406(b)(1) and (2) 

shall not apply to the purchase of the 

improved real property located at 294 

Cowboy Ray Road, Page, Arizona (the 

Property), by the Boilermakers Western 

States Apprenticeship Fund’s (the Plan) 

from the ‘‘Navajo Nation’’ Lodge 4 of the 

International Brotherhood of 

Boilermakers, Iron Ship Builders, 

Blacksmith, Forgers, and Helpers (Lodge 

4), a party in interest with respect to the 

Plan (the Purchase); provided that the 

conditions in Section III are satisfied. 

Section III. Conditions 

(a) The Purchase is a one-time 

transaction for the lesser of $920,000 in 

cash or an updated appraised value to 

be determined by the Qualified 

Independent Appraiser as of the 

Purchase’s closing date (the Price). The 

updated report from the Qualified 

Independent Appraiser must be 

submitted to the Department within 30 

days before the date the Purchase is 

completed for inclusion in the record 

for this exemption application; 

(b) Approval of the Purchase must be 

made solely by Plan trustees that are 

not, and were not, appointed by a labor 

union that is affiliated with the 

International Brotherhood of 

Boilermakers, and such Plan trustees 

must prudently determine in a writing 

that the Purchase is in the Plan’s best 

interest. Such non-union appointed 

Plan trustees must have considered 

other possible locations and properties 

that were unrelated to Lodge 4 prior to 

determining that the Purchase is the 

most appropriate given the Plan’s goals. 

Any trustee appointed by a labor union 

that is affiliated with the International 

Brotherhood of Boilermakers cannot 

participate or in any way influence a 

non-union appointed Plan trustee; 

(c) The Plan must retain the services 

of a Qualified Independent Fiduciary 

and the Qualified Independent 

Fiduciary must prudently: 

(1) Determine that the Purchase is in 

the interest of, and protective of, the 

Plan and the Plan’s participants; 

(2) Determine whether it is prudent 

for the Plan to proceed with the 

Purchase; 

(3) Review, negotiate, and approve the 

terms and conditions of the Purchase; 

(4) Represent the Plan’s interests in 

connection with the Purchase, including 

monitoring the parties’ compliance with 

terms of the sales contract and the 

closing contract, enforcing the Plan’s 

rights under the sale contract and 

closing contract, and ensuring the 

satisfaction of all conditions precedent 

to complete the Purchase, including the 

terms of the Mortgage Loan; 

(5) Monitor to ensure that all of the 

exemption conditions are met and take 

whatever actions are necessary to 

protect the rights of the Plan and its 

participants and beneficiaries with 

respect to the Purchase; 

(6) Review the Qualified Independent 

Appraisal Report and confirm that the 

underlying methodology is reasonable 

and accurate and that the valuation of 

the Property was reasonably derived; 

(7) Ensure that the Qualified 

Independent Appraisal Report is based 

on complete, current, and accurate 

information; the Qualified Independent 

Appraiser was prudently selected; the 

methodology used by the Qualified 

Independent Appraiser is consistent 

with sound valuation principles; and 

that it is reasonable under the 

circumstances to rely upon the 

Qualified Independent Appraisal’s 

report to determine the fair market value 

of the Property as of the date of the 

Purchase; and 

(8) Not have entered into, and must 

not enter into, any agreement or 

instrument that violates either ERISA 

section 410, or the Department’s 

Regulations codified at 29 CFR 2509.75– 

4; 

(d) The terms and conditions of the 

Purchase must be at least as favorable to 

the Plan as the terms and conditions the 

Plan would have received in an arm’s 

length transaction with an unrelated 

and independent party, each of which 

had full knowledge of the relevant facts, 

and neither of which were under any 

compulsion to buy or sell; 

(e) The Purchase must not be part of 

an agreement, arrangement, or 

understanding designed to benefit 

Lodge 4 or the International 

Brotherhood of Boilermakers; 

(f) In the event the Purchase is 

financed with a Mortgage Loan, then the 

Mortgage Loan must be approved by the 

Qualified Independent Fiduciary, and 

its monthly payments must not exceed 

$10,000; 

(g) The Mortgage Loan collateral is 

limited to a first mortgage lien and 

assignment of lease and rents on the 

Property. The Plan may not obtain a 

Mortgage Loan from a bank that has any 

pecuniary interest in, or is owned, 

managed, or controlled in any degree by 

any party in interest with respect to the 

Plan as defined in ERISA section 3(14); 

(h) The Plan must not pay any 

commissions, costs, or other expenses in 

connection with the Purchase subject to 

the cost sharing allocations regarding 

the cost for this exemption as provided 

below in paragraph (i); 

(i) Lodge 4 and the Plan must each 

pay half of the costs associated with the 

proposed exemption including but not 

limited to fees for Qualified 

Independent Fiduciary services, fees for 

Qualified Independent Appraiser 

services, and fees for preparing the 

Plan’s application to the Department 

requesting this proposed exemption, but 

not including the Price; 

(j) The Qualified Independent 

Fiduciary must not have entered into, 

and must not enter into, any agreement, 

arrangement, or understanding that 

includes any provision that provides for 

the direct or indirect indemnification or 

reimbursement of the Qualified 

Independent Fiduciary by the Plan or 

other party for any failure to adhere to 

its contractual obligations or to state or 

Federal laws applicable to the Qualified 

Independent Fiduciary’s work; or that 

waives any rights, claims, or remedies of 

the Plan under ERISA, state, or Federal 

law against the Qualified Independent 

Fiduciary with respect to the Purchase; 

(k) The Qualified Independent 

Appraiser must not have entered into, 

and must not enter into, any agreement, 

arrangement, or understanding that 

includes any provision that provides for 

the direct or indirect indemnification or 

reimbursement of the Qualified 

Independent Appraiser by the Plan or 

any other party for any failure to adhere 

to its contractual obligations or to state 

or Federal laws applicable to the 

Qualified Independent Appraiser’s 

work; or that waives any rights, claims 

or remedies of the Plan or its 

participants and beneficiaries under 

ERISA, the Code, or other Federal and 

state laws against the Qualified 

Independent Appraiser with respect to 

the Purchase; 

(l) The Plan’s trustees and the 

Qualified Independent Fiduciary 

maintain for a period of six (6) years 


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from the date of any transaction related 

to the Purchase, in a manner that is 

convenient and accessible for audit and 

examination, the records necessary to 

enable the persons described in 

paragraph (m)(1) below to determine 

whether conditions of this exemption 

have been met, except that (i) a 

prohibited transaction will not be 

considered to have occurred if, due to 

circumstances beyond the control of the 

Plan’s trustees and/or the Qualified 

Independent Fiduciary, the records are 

lost or destroyed prior to the end of the 

six-year period, and (ii) no party in 

interest other than the Plan’s trustees or 

the Qualified Independent Fiduciary 

shall be subject to the civil penalty that 

may be assessed under ERISA section 

502(i) if the records are not maintained, 

or are not available for examination as 

required by paragraph (n) below; and 

(m)(1) Except as provided in section 

(2) of this paragraph and not 

withstanding any provisions of 

subsections (a)(2) and (b) of ERISA 

Section 504, the records referred to in 

paragraph (l) above shall be 

unconditionally available at their 

customary location during normal 

business hours to: 

(i) any duly authorized employee or 

representative of the Department or the 

Internal Revenue Service; 

(ii) the Plan’s trustees or any duly 

authorized representative of the Plan’s 

trustees; 

(iii) the Qualified Independent 

Fiduciary or any duly authorized 

representative of the Qualified 

Independent Fiduciary; 

(iv) any participant or beneficiary of 

the Plan, or any duly authorized 

representative of such participant or 

beneficiary; 

(2) Should Lodge 4 or any party refuse 

to disclose information to a person on 

the basis that such information is 

exempt from disclosure, such party 

shall provide a written notice advising 

that person of the reasons for the refusal 

and that the Department may request 

such information by the close of the 

thirtieth (30th) day following the 

request; 

(n) Within 30 calendar days after the 

Property is purchased, the Qualified 

Independent Fiduciary must provide to 

the Department a written certification 

that all of the exemption conditions 

have been met and must provide to the 

Department the Statement documenting 

its conclusion that the Proposed 

Transaction is in the Plan’s best interest; 

and 

(o) All the material facts and 

representations set forth in the 

Summary of Facts and Representations 

are true and accurate at all times. 

Exemption Date: If granted, the 

exemption will be in effect as of the date 

the grant notice is published in the 

Federal Register. 

Signed at Washington, DC, this 30th day of 

October 2024. 

George Christopher Cosby, 

Director, Office of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2024–25583 Filed 11–1–24; 8:45 am] 

BILLING CODE 4510–29–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

[NCUA–2024–0135] 

The NCUA Staff Draft 2025–2026 

Budget Justification 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Notice. 

SUMMARY: The NCUA’s staff draft 

‘‘detailed business-type budget’’ is being 

made available for public review as 

required by Federal statute. The 

proposed resources will finance the 

agency’s annual operations and capital 

projects, both of which are necessary for 

the agency to accomplish its mission of 

protecting the system of cooperative 

credit and its member-owners through 

effective chartering, supervision, 

regulation, and insurance. The briefing 

schedule and comment instructions are 

included in the supplementary 

information section. 

DATES: Requests to deliver an in-person 

statement at the November 22, 2024, 

budget briefing must be received on or 

before November 13, 2024. Written 

statements and presentations for those 

scheduled to appear at the budget 

briefing must be received on or before 

1 p.m. Eastern, November 18, 2024. 

Written comments may be submitted 

by November 27, 2024. 

ADDRESSES: You may submit comments 

by any of the following methods (please 

send comments by one method only): 

• In-person presentation at public 

budget briefing: submit requests to 

deliver a statement at the briefing to 

BudgetBriefing@ncua.gov by November 

13, 2024. Include your name, title, 

affiliation, mailing address, email 

address, and telephone number. The 

NCUA Board Secretary will inform you 

by November 14, 2024, if you have been 

approved to make a presentation. In 

order to present at the public meeting, 

you must submit a statement. Your 

statement must be submitted to 

BudgetBriefing@ncua.gov by 1 p.m. 

Eastern, November 18, 2024. Your 

presentation must be delivered in 

person at the public budget briefing. 

You will be allotted five minutes during 

the budget briefing to deliver your 

remarks. 

• Written comments without an inperson presentation: submit written 

comments by November 27, 2024, 

through the Federal eRulemaking Portal: 

https://www.regulations.gov. The docket 

number is NCUA–2024–0135. Follow 

the instructions for submitting 

comments. 

• Copies of the NCUA Draft 2025– 

2026 Budget Justification and associated 

materials are also available on the 

NCUA website at https://www.ncua.gov/ 

About/Pages/budget-strategic-planning/ 

supplementary-materials.aspx. 

FOR FURTHER INFORMATION CONTACT: 

Eugene H. Schied, Chief Financial 

Officer, National Credit Union 

Administration, 1775 Duke Street, 

Alexandria, Virginia 22314–3428, or 

telephone: (703) 518–6571. 

SUPPLEMENTARY INFORMATION: The 

following itemized list details the 

sections in this Notice made available 

for public review: 

I. Introduction and Strategic Context 

II. The NCUA Budget in Brief 

III. Key Themes of the Proposed 2025–2026 

Budget 

IV. Operating Budget 

V. Capital Budget 

VI. Share Insurance Fund Administrative 

Budget 

VII. Financing the NCUA’s Programs 

VIII. Appendix A: Supplemental Budget 

Information 

IX. Appendix B: Capital Projects 

X. Appendix C: Glossary of Terms and 

Acronyms 

Section 212 of the Economic Growth, 

Regulatory Relief, and Consumer 

Protection Act amended 12 U.S.C. 

1789(b)(1)(A) to require the NCUA 

Board (Board) to ‘‘on an annual basis 

and prior to the submission of the 

detailed business-type budget make 

publicly available and publish in the 

Federal Register a draft of the detailed 

business-type budget.’’ Although 12 

U.S.C. 1789(b)(1)(A) requires 

publication of a ‘‘business-type budget’’ 

only for the agency operations arising 

under the Federal Credit Union Act’s 

subchapter on insurance activities, in 

the interest of transparency the Board is 

providing the NCUA’s entire staff draft 

budget for 2025–2026 in this Notice. 

The staff draft budget details the 

resources required to support NCUA’s 

mission. The staff draft budget includes 

personnel and dollar estimates for three 

major budget components: (1) the 

Operating Budget; (2) the Capital 

Budget; and (3) the Share Insurance 

Fund Administrative Budget. The 


lotter on DSK11XQN23PROD with NOTICES1